External Platform Risk

Building a business that is dependent on a third-party platform (e.g., the Apple App Store, Google Search, a social media network) introduces a significant and potentially existential risk. The platform owner has the power to make policy changes that can fundamentally undermine or even destroy your business overnight.

Key Characteristics of Platform Risk:

• Lack of Control: Your business is subject to the rules, algorithms, and strategic decisions of another company.
• Sudden Policy Changes: A platform can change its terms of service, developer guidelines, or API access with little to no warning.
• Arbitrary Enforcement: You may be singled out for enforcement while competitors are temporarily unaffected, putting you at a severe disadvantage.
• Existential Threat: A single change can render your product obsolete or non-compliant, effectively cutting off your access to customers.

Mitigation Strategies:

• Diversify: If possible, do not rely on a single platform. Have a presence on multiple platforms to spread the risk.
• Build a Direct Channel: Develop a direct relationship with your customers that is not mediated by the platform. This could be through an email list, a direct web presence, or a Progressive Web App.
• Advocacy and PR: If a change negatively impacts you, you can use Using PR and Petitions to Influence Platform Holders to apply public pressure.
• Stay Informed: Keep up to date with the platform's developer communications and anticipate potential changes.

While leveraging a large platform can be a powerful growth strategy, it is crucial to be aware of the inherent risks and to actively work to mitigate them.