One of the most important skills parents can teach kids today is how to think critically about business models.
Because if kids don’t understand how internet companies make money, they can’t fully understand what these platforms are designed to do.
In this video, I break down:
• Why “free” apps are never actually free
• How social media companies really make money
• Why attention is the product being sold
• How addictive algorithms are designed
• Why platforms optimize for “eyeball time”
• How understanding incentives helps kids stay safer online
Companies like TikTok, Instagram, Snapchat, Facebook, Google, and others are often framed as tech companies or social platforms. But in reality, most of them are advertising companies.
Their business model depends on maximizing your attention so they can sell ads.
That changes how we should think about screen time, social media, and digital parenting.
If we want kids to navigate the internet safely, we need to help them understand what they’re actually engaging with.
More resources:
familyitguy.com
Chapters
00:00 Why Understanding Business Models Matters
00:25 What a Business Model Actually Is
00:50 How Traditional Businesses Measure Success
01:43 Why “Free” Internet Products Aren’t Free
02:14 The Real Product Social Media Companies Sell
02:54 How Addictive Algorithms Work
03:28 Why You Are the Product
03:52 Looking at SEC Reports
04:43 Why Kids Need This Skill
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