#10 Part 2: Exploring Business Models that Prioritize Community
How does community-strategy fit into your organization?
I’ve been exploring the different ways business models prioritize community in their strategy and looking for themes. Creating this two-part series has been my way to publish my research along the way to bring you along my learning-journey. I’ll be drawing conclusions in future issues and can’t wait to share them with you!
In Part 1 I reviewed examples of community-drive organizations within the following categories:
Education
E-Commerce
Fitness
Co-Working Spaces
Crowdfunding
Healthcare
Non-Profit Organizations
Social Media
Today, in Part 2, I’m exploring these categories:
Gaming
Open-Source Software
Professional Networking
Marketplaces
Travel
Local Services
Software as a Service (SaaS)
Community (is the business model)
It’s important to note that not every company that falls within these categories prioritize community today– in fact, most don’t. But the companies that do prioritize community are much more likely to be successful.
09 Gaming
Gaming companies prioritize community by building online or mobile games that foster engagement and participation, encouraging players to interact with one another, form teams, and share resources and strategies. Some of the best gaming companies in the world also focus on community events and competitions that bring people together to play and compete.
Examples:
Nintendo has a long history of fostering strong communities around their games, from the early days of the Nintendo Entertainment System to the present day with the Switch. The company encourages player creativity and hosts events like the Nintendo World Championships, a nationwide video game competition series.
Fortnite from Epic Games is known for its player collaboration. One feature example is the “Creative Mode” which allows players to build custom structures and game modes using in-game tools. This allows entire communities within the game to revolve around player-made content. The community features they’ve developed allow friends to team up and play together. On top of their in-game community features, they’ve organized community events that have brought together players from around the world to compete.
10 Open-Source Software
This example is a bit of an obvious one because open-source software wouldn’t be successful at all without community. It relies on community participation for development, testing, and improvement. And it benefits from the collaboration and innovation of a large and diverse range of community contributors.
Examples:
WordPress is an open-source content management system (CMS) that powers many websites. According to HubSpot, Wordpress powers over 43% of all websites on the internet. It is maintained by a community of developers who work on improving the software and create plugins and themes.
Git is an open-source version control system that is used by developers to manage code. It is maintained by a community of developers who work on improving and updating the software.
11 Professional Networking
Professional networking companies prioritize community by providing online platforms for professionals to connect and build relationships. Both community-driven events and organization-driven functionality facilitates networking, career development, and peer-to-peer learning.
Examples:
Hired offers a unique community-driven approach to the job search process. They offer personalized support and guidance to job seekers, helping them to improve their skills, build their network, and land their dream job. Hired also hosts events and webinars to help job seekers connect with each other and learn from industry experts.
LinkedIn while categorized as a major social media platform, is also the best known professional network platform online. LinkedIn is developing more focus around developing tools for creators to have individual voices allowing them to educate through LinkedIn learning courses, live streams, and newsletters.
12 Marketplaces
Marketplaces thrive by prioritizing community. Marketplaces provide online platforms for buyers and sellers to connect and exchange goods or services. They are the most complex community strategies to develop because you have to consider both sides of the marketplace– like a buyer and a seller on Etsy. You have to design for a positive community experience on both sides and then bring them together in a meaningful way.
Examples:
Etsy is a global online marketplace, where people come together to make, sell, buy, and collect unique items. They are also a community pushing for positive change for small businesses, people, and the planet. In 2020 purchases on Etsy generated nearly $4 billion in income for small businesses.
Airbnb connects travelers with hosts and locals and has built a community of travelers who value unique and authentic experiences. Airbnb has also invested in building tools and resources for hosts to help them provide a great experience for their guests, allowing hosts to share and build a sense of community.
13 Travel
Travel companies that bring people together to explore new places and cultures prioritize community as a key part of their business model. They create community in many ways through their group of travelers building connection and the communities they visit.
Examples:
Remote Year could be classified as co-working business on our community business type list but at its core it brings people together to travel the world while also solving the problem that they have to work while they do so. Each trip brings together 20-3 other digital nomads.
Intrepid Travel is a small group travel company that allows you to take the planning out of the process. They offer community programs such as their “Women’s Expedition” trips. As a Certified B-Corp they believe in responsible travel– better trips for the consumer, local communities, wildlife, and better for the planet.
14 Local Services
Local services are the OG gathering spaces– local shops, hair dressers, restaurants and cafes are the central hub of a physical community. These businesses rely on community by providing services to a specific geographic location, building relationships with local customers and businesses, and often relying on word-of-mouth referrals and recommendations to grow.
Examples:
I live in Baltimore, MD where my local community is Hampden. All of the businesses along “the Avenue” or W 36th Street are locally owned, making it a go-to hub for all locals. We commissioned Wild Yam Pottery to make us a custom dining set for our home and when we’re going to a dinner party we love to bring a pie from Baltimore’s famous Dangerously Delicious Pies.
15 Software as a Service (SaaS)
SaaS companies increase their chance of success by building community-first. With a community of engaged and passionate users, SaaS companies can increase customer loyalty and retention, drive product development and innovation, and differentiate themselves in a crowded market. When you have a community of product evangelists, the flywheel for your product is endless and growth is nearly guaranteed.
Examples:
ConvertKit has invested heavily in building and nurturing its community through various initiatives such as creating online forums and co-creating content with its users. By building a strong community of users who are passionate about their product and invested in their success, ConvertKit has been able to grow its user base, increase revenue, and build a positive brand reputation.
Notion is a customizable workspace platform (and $10B business) and one of the greatest examples of a SaaS evangelist community. Notion has so many raving fans that they have local chapters all over the world, a roster of certified Notion consultants and a growing community of ambassadors.
16 Community IS the Product
Last but certainly not least, in some cases community IS the business. These companies create and rely on communities as the main value proposition of their business, bringing together individuals who share a common interest, goal or passion, providing them with opportunities to connect, learn, and collaborate. This is popular with personal brands or creator businesses.
Examples:
The Lab is a membership for creators that want to go pro built by Jay Clouse. While the community offers endless resources like Jay’s courses and workshops, the community forum, events and 1:1 connections are the core of the product and without it would lose significant value.
Trends VC membership is for those who are fans of the trends vc newsletter. Joining the membership allows them to access all of the reports but most importantly they get access to the community of other Trends VC readers that help each other drive their businesses forward through strategic advice and accountability.
Did you love this series? The email newsletter comes with other resource links and behind the scenes info only available in my weekly email. Not on my list yet? Subscribe here.
Is there a business on this list that you would LOVE a deep dive on? I am working on a series of case study essays so that I can deep dive the business of community at different organizations. Let me know if you’d love a community breakdown of a particular company.
Are you interested in building community into your product strategy after reading this? If so, I’d love to help! Check out my power-hour workshop service and sign up for an hour co-creation session with me.