“Revenue follows user attention, not the other way around; unlike money, there is a finite amount of minutes in the day, and a finite amount of users. To put it another way, attention is a zero sum game; every minute spent in Snapchat or LINE or WhatsApp is a minute not spent in Twitter or Facebook or Instagram.” — Ben Thompson on Stratechery
Scarcity is the key to economic value. If something is abundant and easily accessible, it’s not valuable. If something is limited and hard-to-get, it is valuable.
The concept of supply and demand — the relationship between the two forces — is so fascinating to me. Simple principle, but I keep turning it over in my head.
Supply and demand pressures come from asymmetry. From lack of balance. If Billy has more oranges than Sue, he has leverage, assuming Sue wants oranges. If Erica has more information than Rohan, she has a different kind of leverage, as long as Rohan is interested in her information.
Essentially, the key to business success is persuading someone to give you money for an object or a service. You have the thing or the skills. They have the money and desire.
Again, I know this is all very basic, but thinking it through makes my brain happy.