Taxonomy of Signaling - Deepstash
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Taxonomy of Signaling

Taxonomy of Signaling

Signaling can be broken down into different components, explained through the act of buying some expensive snickers: 

  1. Signal Message: "Look at my $100 shoes"
  2. Signal Distribution: wearing the shoes
  3. Signal Amplification: post your outfit on social media ... ideally with an inspiring quote. 

Physical products have signaling distribution built in. Apps live on your phone or computer. No one can see them except for you.

That's why some apps like Superhuman add a signature at the end of every email, or apps like Revolut send you a physical premium card.

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Social Signalling is ruling our actions

Social Signalling is ruling our actions

In the book "The Elephant in the Brain" Robin Hanson & Kevin Simler state that:

  1. Most of our everyday actions can be traced back to some form of signalling or status seeking
  2. Our brains deliberately hide this fact from us and others (self deception)

T...

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Networks as Signalling Mechanism

Network membership is a powerful signal message. Users pay a membership fee to signal to other members that they are part of the tribe.

  • Elite Singles is a dating app for “educated and successful, single professionals”. The $400 membership fee is your proof that you be...

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Charge for amplification

Charge for amplification

The financially most lucrative strategy for software companies is to provide distribution for free and instead monetize users who want to stand out of the crowd with paid signal amplification.

Examples:

  1. On Tinder your popularity is synonymou...

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vladimir

Life-long learner. Passionate about leadership, entrepreneurship, philosophy, Buddhism & SF. Founder @deepstash.

90% of our behaviour can be justified by our desire to show off.

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