Sometimes you wake up, take care of the morning necessities, and then hop onto X to see what's happening in the world.
That's exactly what I did.
The first thing in my feed was a post from Nirav Tolia, CEO of Nextdoor. It had been posted approximately 12 hours earlier, around 4 PM Eastern.
Naturally, I stopped scrolling.
Apparently, Nextdoor's product and engineering teams met in San Francisco this week. Nirav was energized by spending quality time with the people who build the platform. He praised their work on what he described as one of the hardest things to do in the industry: returning a consumer product to growth.
He also hosted a special guest, Bing Gordon, business leader, investor, author, and former Chief Creative Officer at Electronic Arts, to discuss his new book, Everybody Wins.
The discussion focused on lessons from game design and how to build products that people actually want to return to.
Sounds great, doesn't it?
There's just one little problem.
Does Nextdoor actually practice what Nirav is preaching?
Three lessons from game design
In Nirav's post, Bing shared three principles companies building consumer products should follow.
Let's take a look.
1. Respect the time
Nirav shared the idea that every visit should feel worth the time it took.
If someone opens an app and leaves without getting anything useful, the company loses that person a little, even if its metrics don't reflect it.
I agree with that principle.
But let's apply it to Nextdoor.
How many times have users opened Nextdoor only to find posts that have disappeared, comments that have been removed, or discussions that have been restricted?
How much time do people spend trying to understand why a post was flagged, why a comment was deleted, or why an account was suspended?
What about users who spend time creating content, providing information, answering questions, and engaging with their neighbors?
Does Nextdoor respect their time?
And what about the people who try to provide feedback to the company and receive no response?
I'm still waiting for the full research study and methodology I requested from Jacob Chavis. That's not exactly an example of respecting someone's time.
It's easy to talk about respecting users' time. It's another thing to demonstrate it through the actual product experience.
2. Earn the return
The second lesson is that people shouldn't return to an app simply out of habit.
They should return because their last visit gave them something useful: an answer, a recommendation, or a reason to come back tomorrow.
Again, I agree.
But what makes someone want to return to Nextdoor?
Is it the value of the neighborhood information?
Is it the ability to connect with neighbors?
Is it the opportunity to support local businesses?
Or is it the frustration of having a post removed, trying to appeal a moderation decision, or attempting to figure out why the platform's automated systems have restricted something?
Nextdoor has an opportunity to provide a genuinely useful service. Local information, recommendations, safety alerts, and neighborhood connections are valuable.
But those benefits can be undermined when users don't understand the rules, moderation seems inconsistent, or people feel their feedback isn't being heard.
You can't simply tell people why they should return. You have to give them a reason.
3. Build in other people
This was probably my favorite of the three principles.
Nirav shared that the best games are never solo. Connection is what makes the experience stick.
And he says that's Nextdoor's advantage: the people on the other side of the screen are your neighbors.
Exactly!
That's the entire premise of the platform.
But here's the question: are those neighbors treated as the most important part of the business, or as the source of content, engagement, and advertising inventory?
Users create the conversations. They share recommendations. They post alerts. They ask questions. They respond to other people's questions.
That activity is what makes the platform useful.
Small businesses also contribute by advertising and providing services to their communities.
If connection is Nextdoor's advantage, shouldn't the company do everything it can to protect and encourage those relationships?
That means consistent moderation, clear communication, meaningful customer support, and a willingness to listen when users provide feedback.
You can't promote community while making people feel that their voices don't matter.
A San Francisco gathering — who's picking up the tab?
Now let's talk about the other part of Nirav's post.
The product and engineering teams got together in San Francisco. Nirav was there to spend quality time with the people building Nextdoor and to host a guest speaker.
Team gatherings can be valuable. Product and engineering teams need opportunities to collaborate, discuss strategy, share ideas, and build relationships.
I'm not suggesting that companies should never bring employees together.
But these gatherings cost money.
There are flights, hotels, meals, transportation, meeting spaces, and other expenses. Depending on the arrangements, there may also be speaker or event-related costs.
And let's be realistic. I have no idea what travel arrangements were made for Nirav or the other executives. I don't know whether anyone flew first class, stayed at a luxury hotel, or received a particular meal allowance.
But I doubt the CEO of a publicly traded technology company is necessarily staying at a Red Roof Inn and flying coach just to save a few dollars.
Perhaps I'm wrong.
The point is that these are company activities, and shareholders ultimately have an interest in how the company spends its funds.
I would like to see the company succeed. I want it to invest in its people and its products. But those investments should produce results.
And that brings us to the financial side of the conversation.
No dividend, but plenty of corporate activity
Nextdoor has not established a dividend for shareholders.
To be clear, not every public company is obligated to pay a dividend. Companies need to invest in operations, maintain cash reserves, and pursue growth opportunities.
But shareholders naturally want to see a return on their investment.
Nextdoor has been working toward sustainable profitability, and its recent financial results have shown progress in some areas. Yet investors are still evaluating whether the business can turn that progress into consistent, sustainable financial performance.
Meanwhile, the company continues to spend money on its operations, including employee gatherings and executive travel.
Again, those expenses aren't automatically inappropriate. They may be legitimate business investments.
But I'd like to see the same level of attention paid to measurable outcomes.
Did the San Francisco gathering produce a better product roadmap? Did it improve the customer experience? Did the teams identify specific problems with moderation, advertising, or user retention? Will we see measurable results?
And what about executive compensation?
I don't know how Nirav's compensation or bonus is structured, and I have no evidence of what he may receive based on this year's performance. But I do think shareholders have a reasonable interest in knowing whether executive incentives are aligned with long-term profitability, customer retention, and shareholder value.
It shouldn't be enough to get everyone together, take a few pictures, publish a motivational message, and declare that the company is returning to growth.
Show us the results.
The rhetoric sounds good. The execution is what matters.
I actually like the three principles attributed to Bing Gordon.
Respect people's time.
Earn their return.
Build in other people.
Those are sound principles for building a consumer product.
But they're also principles Nextdoor needs to demonstrate consistently.
If Nextdoor wants people to return, it needs to give them a reason.
If it wants people to participate, treat their contributions and feedback as valuable.
If it wants advertisers to spend money, demonstrate measurable value.
If it wants investors to believe in the future, show a credible path to sustainable profitability.
And if leadership wants to talk about building a product that people choose to return to, perhaps it should spend some time examining why people become frustrated with the platform in the first place.
I don't need another inspirational post about what makes a great product.
I want to see those principles reflected in the actual experience of using Nextdoor.
My two cents
Nirav, I hope the San Francisco gathering was productive. I hope the teams came away energized, with new ideas and a clearer direction.
But here's something to consider.
The people who build the product are important. The people who use it are equally important. The advertisers who pay for it are important. And the investors who provide capital deserve to see results.
A successful platform needs all of them.
You can host a guest speaker, discuss the principles of successful game design, and celebrate the work of your product and engineering teams.
But at the end of the day, the product has to deliver on the promises.
Respect the time. Earn the return. Build in other people.
Those are great words.
Now, Nextdoor, let's see them in action.
