Building a Platform: A super simple guide

6 min read
startupplatformstrategy

A platform is like a playground you build, where many people can come to play together — makers and users, buyers and sellers, drivers and riders. Your job is to make the rules fair, the tools helpful, and the place safe and fun. When more people join, the playground gets better for everyone.

Table of Contents

  1. What is a platform?
  2. Why platforms are powerful
  3. Your “unit of value”
  4. How to get your first 1,000 users
  5. Designing for big impact
  6. Platform product skills
  7. Simple starter plan

What is a platform?

A platform connects two or more groups so they can help each other. Examples: riders and drivers, buyers and sellers, creators and fans. You don’t make all the things yourself — you make it easy for others to make and share.

Learn how great startups think about value and scaling with the “unit of value” idea link.

Why platforms are powerful

Platforms can grow fast because of network effects: more people → more value for each person. Over time, platforms can also become a standard or even a place where others build apps.

From the “Unit of Value” framework: you can increase value with network effects, standards, and platforms. See the slides link.

What “more people → more value” looks like:

  • More buyers attract more sellers (and vice versa)
  • More creators attract more viewers (and vice versa)
  • More apps attract more developers (and vice versa)

Simple types of network effects:

  • Same-side: creators help other creators (templates, tips)
  • Cross-side: buyers help sellers (reviews), sellers help buyers (better choice)
  • Data loops: more usage makes better recommendations

Your “unit of value”

This is the smallest piece of value your platform gives. It also helps you pick pricing and growth.

Examples:

  • One ride
  • One order
  • One creator post
  • One API call

Your unit of value should match how people use your platform and how you plan to grow.

Why it matters (super simple):

  • Small unit (e.g., one API call): easy to start, need lots of volume
  • Big unit (e.g., whole-company contract): slower sales, bigger revenue per deal
  • Middle “dead zone”: not cheap enough for self-serve, not big enough for enterprise — try to move left (self-serve) or right (bigger deals)

Starter pricing ideas:

  • Take rate: small % of each order
  • Flat fee per action: small fixed price per ride/order/post
  • Subscription for power users: monthly plan for heavy users

How to get your first 1,000 users

Start small and focused. Invite a tiny group, help them win, then grow.

Tips and stories on how famous platforms found their first users: see this guide on early customer growth link.

Kid-friendly playbook:

  1. Pick one small place (one school, one city block, one Discord)
  2. Seed supply: invite first 20 great sellers/drivers/creators yourself
  3. Seed demand: bring first 100 buyers/viewers from your own network
  4. Create trust: clear profiles, photos, reviews, and guarantees
  5. Reduce friction: one-tap signup, easy payments, fast search
  6. Host tiny events: weekly spotlight, creator of the week, first-order coupon
  7. Watch the loop: are actions (orders/rides/views) going up each week?

Designing for big impact

Think like a city planner. Make simple rules, clear paths, and helpful tools. Keep safety high and spam low. Make it easy for people to trust each other.

For big-picture thinking about building huge businesses, read this on designing billion-dollar companies link and watch this platform talk link.

Trust & Safety basics:

  • Real identities (or verified handles) and clear rules
  • Reviews + ratings + photos of real work
  • Easy reporting and quick removals for bad behavior
  • Safe payments held in escrow until service is done

Make doing the right thing the easy thing:

  • Rewards for on-time delivery and great reviews
  • Search boosts for trusted sellers/drivers/creators
  • Starter kits: templates, checklists, how-to videos

Platform product skills

Platform product managers think about both sides of the market, trust & safety, APIs, and ecosystem health. They design incentives so that good behavior wins.

Learn what changes when you move to platform product management link and see an operator’s take on the role link.

What they actually do (in simple words):

  • Watch supply and demand: if one side is low, help it grow
  • Improve the key action: make orders/rides/posts faster and better
  • APIs: let others safely build helpful tools on top
  • Rules and rewards: encourage good behavior, stop spam
  • Health checks: are both sides happy and making progress?

Simple starter plan

  1. Pick one small market and one key action (your unit of value)
  2. Make that action fast, safe, and fun
  3. Set fair rules and clear rewards for both sides
  4. Invite your first 100 users and help them succeed
  5. Fight spam and bad behavior early
  6. Add simple tools (search, reviews, payments)
  7. Open tiny APIs so others can build helpful add-ons

Your first scoreboard (North Star + inputs):

  • North Star (example): successful orders per week
  • Inputs: new listings, active buyers, order success rate, repeat orders
  • Goal: make the North Star go up every week by improving the inputs

Common mistakes to avoid:

  • Launching too big (start with one tiny community)
  • Too many categories (pick one you can win)
  • Hard onboarding (make it one screen, one tap)
  • No trust (add reviews, profiles, and guarantees first)

Keep learning:

  • Unit of Value for scaling: https://www.slideshare.net/slideshow/unit-of-value-a-framework-for-scaling/57485166
  • Designing billion-dollar companies: https://medium.com/life-hacks-for-business/how-to-design-a-billion-dollar-company-7d48b1c0497d#.5ewtgxze6
  • Platform strategy talk (video): https://www.youtube.com/watch?v=sxUO2Jz6hCg
  • First 1,000 users case studies: https://www.library.hbs.edu/working-knowledge/how-uber-airbnb-and-etsy-attracted-their-first-1-000-customers
  • Shift to platform PM: https://medium.com/@wyattearp/making-the-shift-to-platform-product-management-15e1ee061b6a
  • Platform Product Management (SVPG): https://www.svpg.com/platform-product-management/