As many of the cases mentioned in this chapter suggest—and as plenty of familiar real-world examples illustrate—the imperative to create and grow network effects often leads platform founders to begin by offering their services for free. Creating value for users while asking nothing in return is often a great way to attract members and encourage participation. “Users first, monetization later,” as the slogan goes. Or, in a variant that we heard from the executive in charge of platform strategy for Haier Group, a Chinese manufacturing company, “You never take first money.” In other words, only
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