Understanding the Economic Value of Digital Communities

Formal Valuation Models for Communities of Common Interest

In today’s digital-first economy, communities of common interest—particularly those on platforms like Substack or Discord—are becoming highly valuable assets, but only recently have valuation models begun to proliferate to quantify that value. The arbitrage for those who are acquisitive in the near term is MASSIVE because they are MASSIVELY misunderstood and unquantified and, in my humble opinion, represent the only true asset on the balance sheet that is not vulnerable to being commoditized. From NFT groups and investment clubs to brand fan communities and customer support hubs, these communities can be monetized, acquired, or leveraged for business growth. However, valuing them requires a different approach alongside your more traditional Net Present Value or Discounted Cash Flow financial models.

This article focuses on one example of valuation models for Discord (Substack will be a different piece) and explores how investors, entrepreneurs, and community builders can measure and ma…