How to Launch your Digital Platform: A Playbook for Strategists

All startup digital platforms face the same challenges: at the outset, they are empty, and they usually need different types of users. Successful launches need to rapidly attract a large user base, and offer features that add value regardless of how many users sign up for them. Establishing credibility is important, and involves recruiting marquee users and promoting exclusivity to build stand-alone value. User risks can be reduced via a pay-as-one-goes pricing structure and/or subsidizing first-time users. Finally, firms should ensure that their platforms will operate with legacy systems, but only offer enough compatibility to attract new users. The article includes a brief interview with Ed McLaughlin, cofounder of Paytrust, the first U.S. electronic billing system.