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There was a report issued by Piper Jaffray which is the latest iteration of an on-going study on teens.

(Photo credit: Wikipedia)

In it was a nugget about how teens are (or aren’t) using Facebook.  As reported in The Washington Post:

Between fall 2014 and spring 2014, when Piper Jaffray last conducted this survey, Facebook use among teenagers aged 13 to 19 plummeted from 72 percent to 45 percent. In other words, less than half of the teenagers surveyed said “yes” when asked if they use Facebook.

For those of us who work in other businesses, this issue isn’t really so much about where teens are spending their time.  The problem isn’t confined to Facebook either.  Facebook, like Google, Reddit, and many other social/news sites, don’t generate the bulk of the content that populate their sites.  Users do, so when a chunk of the user base vanishes so too does the content that chunk generates.  Could the site replace it?  Maybe, but it wouldn’t be in an authentic voice nor reflect the topics that are on the mind of the intended audience.

I’m always wary about a business that is so dependent upon that model.  Traditional media creates (or buys) content itself.  There is a different issue there (is anyone paying attention to what they’re producing) but the base product is unaffected regardless of usage.  One can argue that Facebook is just a tech platform but if their business model is selling ads (and it is) then they are a media company.  Google produces none of the content is serves.  Search results are just reflective of what’s out there.  If the content becomes unavailable, either through “no index” tags or otherwise, what does that do to the quality of the search results?  How is usage affected?

Sound businesses are built with as few “uncontrollable” elements as possible.  If your model is built on the output of others and those sources dry up, does your business do so as well?  I say we need to own the product stream as much as possible.  What say you?

Over the years I’ve seen a lot of tech startups.  In a previous life I’d have 2 or 3 meetings a day with entrepreneurs who had the latest and greatest business idea based around a piece of technology they’d developed.  I still meet with companies built around ideas that are often very cool and innovative.  There is, however, a problem with many of them.

(Photo credit: Wikipedia)

Suppose you figure out how to make a tennis racquet that always returns the ball perfectly.  Maybe it’s almost a self-driving car for tennis in that it really operates itself.  You might offer it to me at a 100% discount (that’s free for you non-mathematicians).  I don’t care.  I’m a golfer and have no interest in playing tennis.  That’s basic marketing: speak to an audience that has an interest or is predisposed to having an interest developed.  But it’s broader than that.

Unless you have an innovation – or any product – for which there is a pressing need, your chances of success are low.  Just because you build it, don’t expect that “they” will come.  While there are certainly niche products that do well, generally even that niche needs to be large enough to sustain the business.  Don’t assume that you can make up the revenue through higher prices.  Resources are scarce all around.  In fact, I generally assume that people or businesses are unwilling to pay for anything unless it is demonstrably better than whatever free solutions are out there.

You also need to remember that it’s not just money (or lack thereof) that sets up barriers to entry.  New tools require time to learn.  Look at how long it takes for businesses to move from any existing platform – Blackberries, Windows computers to name just two – even though better options exist.  It’s not even a money issue in many cases.  New platforms require support and training.

So build away – maybe they’ll come.  Maybe there will be enough of them to sustain what you’re doing.  Maybe you can convince them that you have a better mousetrap and the investment of money, time, and effort to transition is well worth it.  If those are “maybes” in your mind, you might want to rethink it.  Am I off base?