A great case study of utilizing positive exclusivity is another orthogonal example. Surprisingly, it’s Facebook, not the Music Industry. When Facebook first got started, it was not available to everyone on the planet as it is today. It used to be highly exclusive.
When Facebook was first created, you had to have a .edu email address from a particular school to even use it. At the very beginning of Facebook, you had to have a Harvard email address to access it. A few months later, they expanded to about 20 to 30 more schools.
However, if you weren’t attending one of those schools like NYU, Northwestern or Cal Arts, you couldn’t get on Facebook. Obviously, most of you know that they eventually opened it up to the whole world, but in those first moments when they were very exclusive, there were a lot of components happening. The exclusivity really resonated with people.
Everyone Wants to Be Included
First of all, when you are included in that sort of exclusive phase, you just feel cool. Exclusivity tends to instill a lot of FOMO (fear of missing out) in people who aren’t a part of the club. If you’re included, you feel as though you’re on a train that’s leaving, and maybe other people aren’t taking that ride with you. Exclusivity taps into a higher-level concept called network externalities. This is a vital tactic for a new artist trying to build an audience.
The concept of network externalities basically states that a small group of people who are connected, who actually have something in common, who know each other and who communicate can, in theory, organize to get things done and accomplish a lot more than a huge group of people who don’t know each other. This is why Facebook, even though there were only a few universities using it, was able to blow Myspace out of the water.
For those of you who remember, Myspace was rooted in the idea that you might have hundreds, maybe thousands, of friends, but no one really knew them. No one communicated with them. Meanwhile, the 30 friends you might have on Facebook were actually spreading the product more because they were talking to each other constantly. That’s because they really were your friends.
Connections Are Key
This concept can also be seen in political movements. Many grassroots movements have deep connections with small groups of people when they start. These people are communicating and sharing ideas fast. Often, these movements can outpace something that seems like a juggernaut because people associated with the bigger group aren’t actually communicating. With network externality, it’s essential to get your audience talking to each other.
Perfecting Music by Being Patient
The last part of positive exclusivity, from a creator standpoint — for those of you who write songs, for those of you who make things — is that it allows you to perfect your product before it’s brought out in the open to be judged by the whole world.
People should be encouraged to play their songs and share what they are working on with others early in their creative process, even before they think it’s done. This gives you the feedback you need to make it better. An example of positive exclusivity and music education would be deciding to only play your music in your hometown for the next year before moving on to other towns.
Even if your fans in those other towns say they want you to come play there, sticking to your home venue allows you to workshop the songs you’re creating, perfect them. By the time you open them up to everybody, you know they’re going to work.
Worth the Wait
This method is exactly what Facebook did when they moved from just a handful of universities to the whole world. By the time they made the switch, they knew that they had something solid that the world wanted. It may have been a slower process, but it was perfected in the end.
