Product design question
Design a new feature for Instagram to ring fence revenue generated outside the Instagram platform.
- Product design
- Hard
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What this question tests
Platform economics thinking: designing a feature that captures value currently leaking to off-platform monetization, like creator brand deals.
How to approach it
- Clarify the target behavior: creators negotiating brand deals and driving traffic off-platform (to their own stores or other platforms) where Instagram earns nothing.
- Identify the users: creators who want easier monetization tools, and Instagram, which wants to keep transactions and revenue on-platform.
- Name the pain point: creators currently link out to third party shops or link-in-bio tools because Instagram's native commerce and sponsorship tools are limited.
- Propose a feature: native branded content marketplace connecting creators and brands directly in-app, with Instagram taking a platform fee on deals facilitated this way.
- Prioritize this over generic shopping features since it directly targets the stated leak, off-platform brand deal revenue.
- Define success as percent of branded content deals conducted through the native marketplace versus off-platform, and platform fee revenue generated.
What a strong answer includes
- Targets the specific leak named in the question, off-platform brand deals, instead of a generic e-commerce feature pitch.
- Proposes a believable monetization mechanism, a platform fee on facilitated deals, similar to how other creator marketplaces already operate.
- Balances creator incentive (easier deal discovery) with platform incentive (fee capture), so both sides have a reason to use it.
Common mistakes
- Proposing a generic Instagram Shopping feature that does not address the specific off-platform leak in the question.
- Ignoring why creators currently prefer off-platform tools, likely lower fees or more flexibility, and not addressing that tradeoff.
Likely follow-up questions
- Why would a creator choose your native marketplace over their existing off-platform tools?
- What fee structure would you propose, and how would you validate it is competitive?
More product design questions
- How would you improve Instagram?Meta · Product design · Easy
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- Design a podcast feature for Instagram.Instagram · Product design · Easy
- Design instagram for small businesses.Instagram · Product design · Medium
- How would you improve Instagram Shopping?Instagram · Product design · Medium
- As a PM at Instagram, what new feature would you propose to enhance the platform?Instagram · Product design · Medium
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 7: AI UX and human oversight: design for a system that is wrong sometimes
- Chapter 14: Get the job: the AI PM interview loop