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Pirates, Anarchy, and the Monetization of Social Media

by Dan Robles on December 11, 2009

pirate_chest_only(Editor’s note: some ideas adapted from writings of Peter T. Leeson and introduces the idea of IOUs trading as a proxy for production.  The monetization of social media will likely evolve from such an idea)

No sane blogger would post an article suggesting that anarchy is superior to government as a means of producing widespread cooperation…or would they?

As Milton Friedman put it, “government is essential both as a forum for determining the ‘rules of the game’ and as an umpire to interpret and enforce the rules decided upon.” Most great anarchist theories are duly faulted for significant problems coping with cheating and violence.

Nonetheless, large swaths or anarchy exist today.  For example, there is no World Court to enforce World Law, if such laws existed.  Nor is there a Global commercial law to enforce contracts between Global traders. Even at a local level there is no guarantee that the government will protect your property or enforce your contracts.

A common objection to anarchy is that without government the strong will plunder the weak because the weak have an inherent inability to protect themselves. How can self-governance alone protect the weak?

Social Piracy?

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Counting Eyeballs

by Dan Robles on October 26, 2009

eyeballsThe Advertising Industry has some serious problems. Ad agencies are having a difficult time understanding the modern advertising space with the limited, if not worthless, paradigm carried over from the days of radio; the CPM.

CPM stands for Cost Per Mille

CPM means: how much does it cost to penetrate 1000 heads?… or 2000 eyeballs, I suppose. They count the penetrated heads, like an act of war – the body count, the bullet shells, the napalm canisters…and that is the basis of their decisions. As Dr. Phil would say “How’s that workin’ for ya?”

The CPM is however, a great way to kill off creativity, highlighting the flashy crap while burying the good stuff. Maybe it works well in the counter insurgency of Afghanistan, but it does not work in social media space. What happens after the mommy blogger gets a look at that Spiderman drinking cup that melts in the dishwasher?  Imagine the blog post about that cool new GM retro rod that smells like formaldehyde to the undertaker enduring their midlife crisis.

What’s the CPM for the blogger?: zero.  Can advertisers compete?: no.  Should they stop?: yes.

People are not stupid and they do not work for free. Yet, the entire web advertising model tries to get them to walk through a rat maze of links and pages just to hit more banner ads (impressions).  Advertisers keep doing it, ad after ad, page after page, year after year.  They wonder why the rat don’t hunt.  The most important thing to a rat is food, family, and friends.  There must be a tangible economic incentive for people to do what you want them to do.  Even after that, not all impressions are equal, or favorable, or lead to sales – but every one is valuable to your product and your brand if you know who I am.

Foresight is 20/20

It is always very expensive to change people’s behavior and the best management policy is to accommodate what people are going to do anyway.  If  I want to drive a retro rod, help me do enjoy my friends with it – don’t pull the emergency brake.  If I want to spend time with my family, don’t interrupt me.  If I want to walk in the park, don’t whack me on the head with a billboard.  That’s not a great way to start a conversation.

Open letter to Pitchmeisters

Dear CPM mongers, I have learned to ignore you. Like the paint blots on a Monet, I have learned to see the image despite your distortions.  Your “fear” pitch is comical to me.  The buy-me-love pitch is goofy.  The lifestyle-threat angle sounds as ridiculous as an old like Archie Bunker re-run.  The most fun I can have is using my ability to walk away leaving you talking to yourself like a deranged chimpanzee at the zoo.

Measure what I measure

Help me do what I’m going to do anyway even if I still ignore you – all data is data.  If you want to understand me, measure what I measure; health, happiness, productivity, laughter, family, friends, hope, vision, safety, music art, quality of life.  Help me make friends, empower my community, and care for my family. Don’t try to take these away from me – you will lose.

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YOU are MONEY

September 18, 2009

The corporate social media administrator should have a direct connection, responsibility and accountability with other social media administrators external to the corporation. Not unlike a board of directors having diverse membership.

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