So Much Depends/ Upon/ So Many/ Business Models

In any ecosystem, heterogeneity is a healthy thing. We love flowers and they’re beautiful, but if Vancouver *only* had flowers—no trees, no grasses, no vines or bushes, the ecosystem would collapse. Likewise, if we only had, say, Maple trees and violets and no other trees or flowers, we would have an impoverished ecosystem because only a select few other plants and limited animals would be able to survive here.

The same is true of any market. The danger of any business model—Patreon, Kickstarter, or ad-generated revenue—becoming dominant is that each of these models allows for a certain type of content to survive. Patreon works ideally for artists who have grown a platform elsewhere and have an ongoing artistic practice that would exist with or without patrons—that is, it works best when the income earned is supplemental as opposed to substantial. Of course some people do survive off of their Patreon income, but as we’ve seen, that’s an incredibly small percentage of people using the platform, and I think putting this expectation on the platform is unreasonable.

Kickstarter, on the other hand, works best when it’s enabling a project to move forward. As opposed to Patreon, which has little-to-no community or tools for discovery, it is possible to find projects on Kickstarter without knowing *exactly* who—or what—you’re looking for. For this reason, having a following is definitely beneficial but not absolutely necessary in the same way it is with Patreon. Where Kickstarter (and other crowdfunding) platforms excel is actually in building awareness and support for projects—monetary and otherwise. For this reason, it’s best suited for large, one-off projects that exist outside of an artist’s regular practice.

The existence of ad-generated revenue is also essential because it allows for “free” content, or at least content that is widely and openly accessible without the user having to pay money. Because the Internet is so ubiquitous in, and in many ways, essential to modern life, it’s important that there are services, communities, and content that are accessible without a fee. This is, of course, outside of the conversation about privacy and the politics of collecting information in lieu of a fee, which isn’t necessarily an ideal substitute for a fee. That being said, however, while I use Facebook (for communicating with fellow cohort members and for finding out about/RSVPing to events,) I’m not sure that I would pay for it. Personally, I’m okay with the exchange of some online privacy for a service that I feel is useful but not absolutely essential.

Part of what makes the Internet as great and useful (and at times scary) is that it allows for so many different types of content and creators to flourish. As with almost anything, however, one size does not fit all, and too much of a good thing is not a good thing. In my opinion, the Internet benefits from creators with an ongoing artistic practice, creators with big ambitious ideas, and free services, and for all of these to survive, there needs to be a variety different business/funding models to properly support them.

2 Replies to “So Much Depends/ Upon/ So Many/ Business Models”

  1. Hi Steph,

    I love the ecosystem analogy!

    I like how you’ve outlined the pros and cons of some of the business models we discussed in class and what they excel in. The way you constructed your thoughts was easy to follow!

    When you pose that a fee for a service can eliminate the collecting of data and private info is not the ideal substitute, what do you think the more reasonable substitute could be?

    Thanks for your post! :)

  2. Hello,

    I agree with Jaz on the ecosystem analogy.

    I do agree with you, that there is no such thing as the best business model to have. I liked how you connected your ideas with examples.

    One thing to ask after reading your post, do you think that the business model for Patreon or Facebook or Ads Blocker is good as it is. And there is no other way of having the same services but with a different business approach?

    Thank you!

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