Third-Party Plug-ins

Third-party plug-ins are applications that are built to extend the functionality of an existing platform, such as a content management system (e.g., WordPress), a CRM (e.g., Salesforce), or a social network (e.g., Facebook).

Key Characteristics

• Pricing: In the consumer space, plug-ins are often free and monetized through advertising or as a lead generation tool for a larger product. In the enterprise space, they may have an upfront or recurring cost.
• Benefits for the Entrepreneur:
  • Access to a large, built-in audience.
  • High adoption rates for new plug-ins.
  • The potential for viral growth on social platforms.
  • Built-in distribution channels, such as a platform's marketplace or app store.
• Benefits for the Customer:
  • The ability to add new features and functionality to a platform they already use.
  • Many plug-ins are free.
• Downsides:
  • The "gold rush" mentality on some platforms can make it difficult to stand out.
  • There is a risk that the platform provider will eventually incorporate your functionality into the core product, making your plug-in obsolete.

When to Use

This model is a good choice when:

• You want to extend an existing web or desktop application by making it easy for platform users to integrate your service.
• You have a product idea that is specifically targeted at the users of a particular platform.