Notes on interaction design & development. Get the Feed.
By Christoph Ono, builder at GBKS, and tweetable at @GBKS.

When what companies make money on is the same as what users want

11/23/17Business

Some companies make money from advertising. To make more money, they need to put more, and better targeted ads in front of more people. Targeting is the key to sell ads at higher prices, since it increases the chance of sales. Users generally don't like advertising, since it interrupts their experience, and they don't like being tracked and followed around. So the nature of the advertising business model creates friction between what the company wants and what it's users want.

Other companies make money from selling products directly to people. Some focus on low prices, speedy delivery and wide selection. Others focus on creating and selling their own premium product. Both types of companies have interest in making customers happy so they come back for future purchases. In order to grow, they need to convince more people to give them money in exchange for products, which is a simple and more aligned relationship.

Business and product decisions are much simpler when interests are aligned.