Churches and the Platform Model: A Unique Business Approach

Churches function like platforms, connecting followers and fostering community.

Reviewed by Davia Sills

Key points

• Churches act as platforms, connecting followers with services and community.
• Network effects help churches grow and attract more followers, like digital platforms.
• Tax-exempt status allows churches to reinvest in expansion and charitable work.

Religious institutions, particularly churches, offer a fascinating perspective on the platform business model. While not historically seen as business enterpises, many churches today are wealthy and transnational and share many characteristics with modern platform enterprises. At their heart, churches act as platforms, connecting members with religious services, teachings, and a sense of community.

In return, the followers contribute as both consumers and producers of religious and social capital. Churches benefit from scale and network effects, similar to digital platforms, with the added advantage of being tax-exempt in many countries. This unique combination allows religious institutions to flourish in ways that resemble modern platforms like Facebook or Airbnb.

How Churches Exemplify the Platform Business Model

A platform business model creates value not solely through the business itself but by facilitating interactions between different groups, such as producers and consumers. The platform merely provides the structure where value is exchanged. A church acts as a platform by providing a space for religious and social interactions. Followers as consumers take part by attending services, joining events, and donating. They also contribute as producers by volunteering, spreading the faith, and supporting each other. This two-way exchange is similar to how modern platforms work, making churches an example of platform interactions.

The network effects in churches are similar to conventional digital platforms. As more people join, the church becomes more active and attractive, drawing even more members. Larger congregations can support outreach and charity work, making the church even more appealing.

Churches have long used this effect to spread their message and grow their community. Just as platforms like Facebook gain from a large user base generating and consuming content, churches benefit from an engaged congregation that creates and consumes religious and social value.

Religious institutions have been successful because they can grow easily, much like platform models. Churches, especially large ones, scale in two ways: by expanding to new locations and by offering more services, like youth programs and charity work. Followers often volunteer to support these services, similar to how platforms rely on followers to provide content or services, like Airbnb hosts or YouTube creators. This capacity to grow, combined with network effects, helps churches expand, reach, and engage with more people.

Another key component that enhances the platform-like nature of religious institutions is their tax-exempt status in many countries. This financial advantage allows churches to reinvest more resources into expanding their platform and reaching more followers. For example, many churches use tax-exempt funds to maintain and expand their infrastructure and operations, run charitable programs, and engage in missionary work. Tax exemptions allow religious institutions to operate more efficiently and grow faster, acting like subsidies that help them expand beyond typical limits.

Religious institutions benefit from strong loyalty, with followers regularly attending, donating, and volunteering. This commitment, driven by shared beliefs, creates a close-knit community and helps the church sustain itself over time, similar to brand loyalty in businesses like Apple or Amazon.

To sum up, religious institutions, particularly churches, highlight the many unique features of the classic platform business model. They serve as spaces where followers engage as both consumers and producers in religious and social activities. These institutions benefit from network effects, scalability, and tax-exempt status. Their ability to grow and sustain large, loyal communities mirrors the success of modern digital platforms. Through their capacity to connect people, foster communities, and scale their impact, religious institutions have thrived for centuries, much like today's most successful platform businesses.