The Value of a Velvet Rope: Effects of Hype and Exclusivity on Launch Strategies
Jordan Odinskyfemstreet.substack.com
Saved by sari
The Value of a Velvet Rope: Effects of Hype and Exclusivity on Launch Strategies
While Path did indeed fail as a distribution provider, I would argue that keeping the network’s size small can still have benefits in line with my signaling theory: Deliberately limiting the number of people who can join a network (e.g. by charging a membership fee) creates scarcity which in turns makes the network more interesting. Network members... See more
Julian Lehr • Signaling as a Service
Going to a membership-only model also made the site’s members feel like insiders. Just as with the velvet rope that prevents regular partygoers from just walking into an exclusive nightclub, people assumed that if you had to be a member, the site must be really desirable.