The Risks of Building on Facebook Platforms

The article explores the growing concerns faced by app developers building on platforms like Facebook. The authors analyze recent examples, such as the demise of iLike, to illustrate the potential pitfalls of relying heavily on these platforms.

• The article argues that startups building on Facebook face significant risk due to the platform's control over their business.
• Facebook’s ability to change the terms of service or the technology could dramatically impact the success of any app reliant on its platform.

The Case of iLike and Facebook Dependence

The article delves into the iLike case, where the music app's valuation plummeted due to its dependence on Facebook.

• Potential acquirers were hesitant to invest in iLike due to the uncertainty surrounding Facebook's future plans and the potential for Facebook to change the terms of service, thus cutting off iLike's access to users.
• The article emphasizes that any app relying heavily on Facebook's platform must consider the potential risks associated with the platform’s ever-changing landscape.

The iPhone App Store and Developer Control

The article also examines the iPhone platform and the challenges faced by app developers due to Apple's strict control over the App Store.

• Apple's strict policies and control over the app ecosystem have led to some complaints from developers, but the article argues that this approach has resulted in a more polished and consistent user experience.
• The article suggests that while Apple's control may limit developer freedom, it also provides a more consistent and reliable platform for users, unlike platforms like Facebook where the platform itself is prone to rapid changes.

The Mismatch of Agendas

The article discusses the inherent tension between app developers and platforms. While developers seek to maximize their reach and minimize reliance on any single platform, platforms prioritize the long-term health of their ecosystems.

• The article highlights the need for platforms to find ways to enable app developers to generate sustainable revenue while maintaining control over their platforms.
• It argues that platforms should focus on providing a robust and stable environment for apps to thrive, ensuring long-term success for both developers and the platform ecosystem.

The Future of Platforms and Startups

The article concludes by exploring the implications of these challenges for startups building on platforms like Facebook and iPhone.

• The article suggests that the iLike case serves as a warning for other startups building on these platforms, urging them to consider the risks associated with heavy reliance on a single platform.
• It advises startups to develop a strategy that minimizes their dependence on any particular platform and allows them to diversify their distribution and revenue streams.

The Importance of Diversification and Long-Term Strategy

The article emphasizes the need for startups to adopt a long-term strategy that prioritizes diversification and minimizes dependence on any single platform.

• Startups should explore alternative distribution channels and revenue models to reduce their reliance on platforms.
• The article suggests that platforms should focus on creating a more open and flexible ecosystem that empowers developers to thrive.

Building a Sustainable App Business

The article concludes by highlighting the importance of building a sustainable app business.

• App developers should focus on building value for their users and creating a product that offers a unique user experience.
• Startups should consider diversification across platforms to avoid dependence on a single platform.