6 Matching Annotations
  1. Nov 2020
    1. This is why social media services are free to use. The added signaling value is solely captured by the physical products that are being shared.

      Social media offers signalling distribution and amplification. But because they are not able to capture any of that value, it is free.

    2. Fortnite’s monetization model is based on cosmetics: The skin your character wears; the looks of your glider and the tools you use; the way your character dances (emotes) – all of these are signaling amplifiers with different signal messages to uniquely express yourself in the game. And you have to purchase them

      Julian posits that Fortnite's revenue model is also based on signalling. People buy cosmetic upgrades to their character like your tools, your skin color etc.

    3. Luckily, Tinder offers a variety of additional signal amplifiers that help you to stand out. The sole purpose of features like Tinder Boost and Super Likes is to outcompete status rivals by giving you preferential signaling treatment. And guess what – they come with a price tag.

      Julian claims Tinder is monetizing on signal amplifiers like Boost and Super Like.

    4. Digital products have one crucial disadvantage over atom-based products and services: Intangibility. Apps live on your phone or computer. No one can see them except for you. The signal message of a fitness app is the same as that of a gym membership or athletic wear (strength & fitness display), but the signal is much weaker because you can’t distribute it to anyone.

      One of Julian's central claims is that although the signalling message of software ownership is the same as the ownership of a physical product, because it's intangible, it's much less effective as a signalling tool.

    5. Another point of evidence is the lack of luxury software products. People spend absurd amounts of money on jewellery, handbags and cars, but I can’t think of a piece of software with an even remotely similar price tag. Sure, people have tried to sell $999 apps but those never took off.

      Julian Lehr posits that because software purchases are less visible, their signalling power is reduced. This is why, for instance, you don't see any luxury software products: Because you cannot signal you're in on it.

  2. Oct 2020