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Tag: Facebook Page 2 of 3

Video: The Last Mile of Social Media

Sure Bro…Facebook, Twitter, and Linkedin are great for broadcasting across the Ocean, but how good are they for meeting your neighbors? As wonderful as all this global chatter appears, nothing tangible happens until the rubber meets the road.

Don’t Worry, Be Neighborly…

The following video describes how the components of the next economic paradigm must act locally, but share globally. For anyone wondering what to do next or where the great opportunities are, think about building out the Last mile of Social Media.

Pssst … Wanna Get Wasted?

dont_worry_get-stoned

Many Social Media Gurus are espousing a new culture that their clients should forget about blogging (adding meaningful content) in favor of the ubiquitous widespread “updates”.

Using automated apps, you no longer need to waste time creating content that teaches or expresses, you can populate across social media space carefully wedged in between someone else’s creative content. I find this appalling.

The new marketing mantras go something like these:

  • “Go where your customers congregate”.
  • “Gain their trust by sharing your stuff”
  • “Soon, you can start to influence their behavior”
  • “Once hooked, they will do your deed for freeeee!!”

This is starting to sound more like the neighborhood drug dealer than any sustainable economic paradigm.

Slavery on Steroids

Slavery is a term characterized in part by the coercion of another person to perform or act without compensation. The effects of slavery are not only physical, but mental as well.  The effects of oppression manifest themselves in addictive behaviors.

Social acceptance is an extremely powerful psychotic that can be cleverly turned against any person. The techniques of social media are getting increasingly sophisticated in hijacking and consuming the social capital of others.

Green Marketing

It does not take long to see that the marketing professions are defining the social media space regardless of what anyone says about user-generated content.  The danger is that social media will become just as unsustainable as the economy that it replaces.  People will soon lose the ability to produce the currency that the media demands to support itself.

Ban advertising

t would be high temple sacrilege for any social media monetization strategist to suggest that advertising of any kind must be banned.  Well, not exactly, but the objective of advertising can be redefined if there were a means to do so.

The only sustainable monetization strategy (of which there are terribly few current examples) are the deployment of social media applications that empower people to discover their own individual talents, to pursue what they are naturally best at and enjoy doing most – while also eliminating the clutter and irrelevant messages that distracts them from their personal life goals.

This means that brands should communicate more and not less.  They should identify, educate, and promote the talents and abilities of a million customers instead of 1 superstar athlete or celebrity.

The proverbial sports analogy:

Advertisers should sit in the bleachers and cheer on their favorite customer, but they should not be in the game, blowing the whistle, or running the scoreboard.  Let them pay admission, see my logo, and buy my overpriced beer.  Let them sell to each other on their own dime – but under no circumstances should they be allowed on the field, in the schools, or in the home without explicit and expressed permission of the customer.

The Monetization Mystery

maritimeMystery

OK, the social media buzz is getting a little stale folks.

  • Yes we know that social media is valuable.
  • Yes we know that lots of folks are doing it.
  • Yes we know that the predictive web is predicted.
  • Yes we all know that all this activity will mysteriously “monetize”

Show me how everyone is related and I’ll show you a new economic paradigm. Here is how they are not related:

  • They are not related by “earning” people’s trust today so you can shove your product down their throat tomorrow.
  • They are not related to collecting thumbnails.
  • They are not related to giving the g00gle alg00rithm an 00rgasm.
  • They are not related by “The 6 Steps to [Fill in The Gap]”.

The next economic paradigm is related to transformation.

  • People transform data into information
  • People transform information into knowledge
  • People transform knowledge into innovation
  • People transform innovation into data

Under a set of fundamental assumptions that:

  • All people are socially talented
  • All people are intellectually talented
  • All people are creatively talented
  • All people are good at something
  • Nobody is good at everything

This is how value is generated. This is where the mystery of monetization hides.

Draw Your Own Org Chart

I recently caught up with a childhood classmate on Facebook. I remembered hearing that she had lost her older brother, Robert, in a recreational accident several years ago. Nobody ever knows what to say to a friend in a situation like that. But her brother was different.

When I was a freshman in high school many years ago, a couple of goons were getting ready to kick my ass for no particular reason except that I was a freshman. Then Robert walked around the corner. He stood next to me, applied a menacing grin, and stared my oppressors down. After a few moments, he walked away without saying a word.

Robert never said very much, he didn’t have to. He had so many friends that nobody dared to mess with him. I very much appreciated his intervention because nobody ever bothered me again.

Over the next several months, I saw Robert do this few more times. That’s when I realized why he had so many friends. It was one of those “life lessons”.

I’ll leave the story here, where Robert left it for us. Draw your own conclusions about social media organization.…

Picture credit: Names and Faces are not of the actual people portrayed in article

Using Social Currency To Fight Terrorism

conversations2-500x351Given the events of the last several weeks, it’s time to for the aviation industry to get serious with Social Media.   This article demonstrates how an alternate currency can be used to severely reduce or eliminate terrorist risk in commercial aviation.  Think I’m kidding, read on.

Obviously an airline will not let you board an airplane if you don’t have the financial currency sufficient to buy ticket.  Why should an airline let you board an airplane if you do not have social currency sufficient to fulfill your social obligations while in the air?

People with extreme social currency deficiencies are routinely stripped of their rights by a jury of peers and isolated from society for a period of time (where they would not board an airplane anyway).  While there are many systems in place to manage the various degrees of social currency deficiency, none appear to be able to identify a terrorist without also violating the rights of non-terrorists.

Human Writes

However, many people are willing to share information about themselves to associates with whom an economic benefit is shared or exchanged.  This happens a billion times per week on Linkedin, Facebook, and Twitter – why not among fellow passengers?  After all everyone is already connected by 6 degrees.

What would a terrorist’s Facebook profile say about them?  Do they have a lot of referrals on linkedin?  Do they post great work on Flikr? Is their community orchestra featured on My Space? Are their posts popular on twitter?

Should a social currency credit score become imperative to social transactions as the financial credit score is for financial transactions?

Banks and Insurance companies already rely on a highly invasive “Credit Score” to establish financial risk profile as a means of protecting their selves and their other clients. Why wouldn’t an airline use a social credit score to establish a social risk profile as a means of protecting their selves and the lives of their other clients?

Ruse and lose

Sure, the bad guys can adapt to social media as they have adapted to all other measures.  The problem is that the greater the size and scope of their social media ruse, the more difficult it is to maintain the ruse.  A threshold score could be set to nearly eliminate this possibility.  Those folks can then simply opt into the full body scan.

The Paradigm Shift

As the saying goes, the attacker needs to be successful only once, while the defender needs to be successful every time.   The concept of a Social media credit score flips this paradigm on it’s head. The attacker’s social credit score needs to be successful every time.  The defender needs to be successful only once.

USocial = SUPER SPAM

moneyhappiness_vl-vertical-223x300USocial is now going after YouTube. These clever guy and gals have figured out a way to bypass the democracy of social media to bring is a new form of merchant class capitalism…SUPER SPAM.  For a small fee, you can get your message to the head of the line – in effect pushing the rest backwards.  Presumably for a bigger fee, you can get ahead of those who paid a smaller fee, and so forth.

Once the bastion of lobbyists and special interest groups, anyone with a few bucks can now pull themselves up the ladder by pushing other people down the ladder.  Once the domain of high powered PR firms and Marketing agents; just a few dollars cast among the USocial Gods delivers those long elusive eyeballs of the old radio/TV marketing paradigm.

Watch this one carefully kids.  Social Media has long proven uncontainable.  Saying that you can beat  social media at its own game is like saying you can repair a credit score.  Like a credit score, you can do more damage than good trying to steal what does not belong to you in an effort to boost your income.

Those eyeballs, those followers, and those “friends” do not belong to USocial and are therefore not theirs to sell.    They belong to you and I and we control them – or we don’t play.  If USocial keeps their client list secret, this would be the capital offense in social media space.

Intellectual Property in Bloggerville

Most bloggers invite you to share their content far and wide on any one of many aggregation sites.  But some people get really upset if you post that article on your own aggregation blog (even with full credit and back links).

I am always amazed when I get that proverbial chest thumping quasi-barrister “cease and desist” letter, followed by remedial citation of copyright law, and always ending with some pathetic accusation of irreparable damages and criminal violation.   They get upset if you change the content and they get upset if you don’t.  The worst is when it comes from a self-proclaimed social media guru who touts all ‘dat social media Kool Aid in their consultancy propaganda.

Reality Check:

Social Isolation Funnel

You don’t stand a chance.

Social Influence Marketing (SIM) is becoming more sophisticated at finding you in your social space than you are in avoiding Social Influence Marketing (Advertising).   A new set of theories and systems have been deployed on how to engage you in conversation, grab your response data, funnel you into the pitch, induce credit card labor, and draw out your social broadcast.  Guess what, your social media sites are helping them….

Flirting with the enemy

The greatest problem that social media created for advertisers was to disperse the crowd from the once treasured “captive audience” of the radio/TV days to millions of individual affinity outlets.  Blasting the message home is no longer a function of Ad spend.    However, marketers are smart and social media sites are corporations too – now these forces are converging with unimaginable voracity.

They have you figured out.

In a quest for monetization, popular sites now provide “data services” to the brands. Such data empowers, once again, the advertiser over the viewer.  Why not provide “data service” to the users about what the brands pay for and what information they are mining about users?  If Brands are not comfortable with disclosing such information – should we be comfortable about teaching our “human nature” to them?

As social sites increasingly develop stickiness applications to retain the audience, new innovations are directed to that old business TV/Radio model rather than reinforcing the reason why social media emerged in the first place.    At some point, it becomes the best interest of the social site to meet the Wall Street expectation of “tangible output” over the user expectation of increased productivity. In other words, keep people glued to the LCD and don’t empower them to enter their communities to innovate social change.

Once users lose the ability to reject a brand message, we’re all right back where we started from.

People need to meet each other in real life to do real things. The best way to retain the original power of social media is to disperse once again.  Micro-social networks reflecting communities of interest need to form in proximity to each member.  Each community of interest must combine with other highly local social networks to share ideas, create local innovation, and enforce social priorities.

Hide your data in your own data:

Each time a different affinity group meets with another affinity group, the demographic data changes – it becomes renewed, refreshed and remains in the possession of the community.  This is where the value is, people can own it of they knew it’s theirs – and Brands can access far more value by supporting communities rather than by isolating communities.

Banks In The Future

 

Bankers don’t care about money, they care about the rate of change of money. At The Ingenesist Project we are not entirely interested in change – we are entirely interested in the rate at which things change. As you can imagine, we get all giddy when we see the rate at which the rate of things change…that’s all that banking is and all that banking ever will be.

Each of the Facebook Applications posted below are to Facebook what The NYSE is to Commercial Banking. Note that Facebook is growing at an astonishing rate. Now, these applications – on top of Facebook – will increase the rate of change of the rate of change in how people communicate, transact, organize, and deliver conversation.

You are hearing it here; these innovations are the most significant disruption that Wall Street can’t possibly imagine. Money is a social agreement and these are the banks of the future. Although many come from the gaming industry, many games are modeled after the real world, therefore, transition back to the real world is not as difficult as one may think. If people are willing to trade it, it becomes money. This is serious business. While many of these new innovations are on the right track – not all of them will survive.

A Learning Revolution

Today I received an invitation to join a poll, but it was not the Gallup organization.  Today, I was given some currency to trade – it was not dollars.  Today 1200 people read my ideas – but not through traditional media.  Today, I did not work for a corporation – but I did work and I did earn convertible currency. I voted 10-15 times today, but not for politicians.

Is this the way things will become?  Ask any 25 year old what their aspirations are and, by definition, that is the way things will become.

A Learning Revolution

Today, the Wall Street Journal is reporting a strange new paradigm of populist angst.  In the past, public sentiment would swing back and forth between anger against the corporations (liberals) and anger against government (conservatives).  Today, however, things are different. People no longer view these populist swings as opposing forces.  Rather, people see government and business as one big swindle that takes all of the assets of the people and delivering them directly to the hands of the rich and powerful.

“They’re [people] mad at institutions — all institutions,” said Karin Johanson, a Democratic strategist. “Nobody can underestimate the angst, or even fear, of the American voter right now…The institutions they were relying on which were assuring them of their security were not there.”

So, dear reader, here we sit at our computer screens fully rational and aware that there is nothing we can do to impact change at this macro level.  Sure, we can join fringe groups on Facebook, or we could write a letter to our so-called Representatives.  Or… WE CAN REVOLT!!! Except, who are we going to revolt against?  Government? , Corporations?, Each other?  It’s like attacking a cloud…no middle, no defined edges, and no distinguishing features, except lightening.

For example: (WSJ) The double-edged anger is creating difficulty for both parties. Voters are demanding solutions to problems in health care, but remain wary of both government agencies and private firms that could play a role in a solution. People are upset about deregulation and furious at re-regulation. They want government action, but not if it swells the deficit.

“The greatest movement within the tea party is ‘None of the above,’” said Jim Bancroft, a founder of the tea-party group in Hartford, Conn. Officials in both political parties “need to be totally removed — every single one of them,” he said.

It would really not have mattered if John McCain or Barack Obama were president.  The difference would have us entering the same vortex with either a scowl or a smile.    The job of the President in this day and age is not unlike US Airways Captain “Sully” Sullenberger – land the crippled jet on the icy river by gliding as slow as possible, as low as possible, as level as possible, for as long as possible and hope that the hull does not sink.

Whatever is left will become the new economic paradigm: the fabric of society must remain intact, capitalism must be preserved, and social priorities must be enabled. It will be neither socialism not capitalism – both have failed.  We need to learn Social Capitalism where social media is the dominant institution that issues a productivity based currency.   So sit back, keep your eyes, ears, and minds open. Learn from each other. Let the pilot do his job – love him or hate him, he’s got the rudder.

Photo credit:  Bill Moseley

Coupon Search Engine – Are You Worthy?

 

Are you worthy ?

What if many companies dropped their advertising spend into a several different buckets of cash representing various lifestyle segments?  Now, suppose that the cash was distributed  to social media mavens corresponding to their social media reach in the lifestyle segments.  The advertisers and the amounts contributed to the buckets are fully disclosed.  The Social Media mavens are compensated by their Alexa rankings – again, fully disclosed and objective. The Social Mavens are simply paid to blog their lifestyle experiences with no contract or commitment to any brand, nor retribution for any assessment – just like always.

A new Financial Instrument

The debit card serves as a financial instrument modeled after the insurance industry that replaces traditional advertising with managed ROI risk. Of course, we are not the only ones trying to find a way to make the 300 Billion dollar per year advertising spend more efficient….

Sticky Coupons

The following Rueters article demonstrates that the coupon is not dead – nor is it paper anymore.  ASK.com will compile coupons and help people to find savings.  This is good for advertisers since more can be given away on the coupon because less is spent on production and traditional media.  This is also good for the consumer as more valuable coupons is more money in one’s pocket.

Feed the Entrepreneurs, feed the economy

Now we need to ASK – as the coupon value increases and the redemption time decreases and If the minimum wage is 8 dollars per hour – at what point can a person earn 8 dollars per hour cutting coupons?   Can a Social Maven, in fact, earn a decent living doing other people’s shopping all on coupons?  Why not?

***original article here********

NEW YORK (Reuters) – Ask, the search engine owned by IAC/InterActiveCorp, unveiled a new service on Tuesday to help consumers seek out coupons for saving money when shopping online.

 

The new service, Ask Deals, helps users search the Web for deals available by aggregating the best offers to a proprietary database of more than 1 million offers from national and local merchants.

 

Ask’s management hopes by having a dedicated “deals” tab on its search engine page the feature will become a natural destination for consumers looking to save money with discounts on goods and services.

 

Ask has added features such as helping consumers share coupons and deals through email and social networks like Facebook and Twitter. Users can also sign up for “Deal of the Day” emails.

 

The majority of Ask’s revenue comes through a search advertising partnership with market leader Google Inc, which brings up links of relevant advertisers in response to a user’s search query.

 

The Ask network was the fourth most-used search engine in the United States with a 3.9 percent share of all search queries in August, according to Web measurement firm comScore. Google had 64.6 percent market share, Yahoo had 19.3 percent share and Microsoft’s new Bing search engine had 9.3 percent share.

 

(Reporting by Yinka Adegoke, editing by Matthew Lewis)

What If The Dollar Fails?

I have been hearing a great deal about an inevitable collapse of the dollar.  Not today or tomorrow, but more likely over the course of the next 10 years.  The failure will probably not be a stupendous crash since politicians would avoid this as a means of self-preservation.  Rather, it would simply be a slow and grinding inability to “afford” many important things using cash.  Note that this has little or nothing to do with your human ability to produce important things.

Few people disagree that a 50 Trillion dollar debt obligation cannot be paid back without at least 50 Trillion dollars in increased human productivity.  Traditional productivity usually means taking stuff out of the ground, air, ocean, or the forest and making things that eventually wind up back in the ground, air, ocean, or the forest. Today, we are encountering constraints on the planet’s resources.  Something has got to give.

The ONLY technological change that is happening at anywhere near the rate that can conceivably deliver a substantial amount of “increased productivity” is Social Media. But how do we turn it into dollars?  Maybe we shouldn’t.

Here is the problem; the trends for monetizing social media actually slow it down.  People use social media only because of the prospect for increasing their long term productivity as relationships prosper. Entrepreneurs trying to get paid for their innovations invariably need to introduce “friction” by attempting to convert “short term” user productivity into cash.  There is no business case on short term productivity making their innovation nonviable.  Therefore, the monetization problem introduces a threshold over which most great innovations simply cannot reach.

The purpose of this article is to consider what people will use for trade if the currency becomes ineffective AND their productivity does not.   If the dollar does fail, people will attempt to meet their daily needs until a financial system is corrected.  Many countries that have experienced currency problems and the most common result are the emergence of a black market where Levi’s, Cigarettes, or other commodities serve as a de facto tax-free currency.

While on-line gaming industry is pioneering virtual tax-free currencies with extraordinary results, back in reality, people will begin trading services.  Plumbers will find dentists, farmers will find laborers, and teachers will find landscapers.  Matchmaking will become a financial instrument. People will use Facebook and Twitter, Linkedin and many others in new ways in order to keep the game in play.

In fact, perhaps they already are.

The Voice of the Youth

HS students Euro ChallengeDoes One size fit all?

The 40+ crowd is flooding to Facebook.  The 30+ massage their Linkedin profiles. The 20+ crowd is tweeting their hearts out.  What are the kids doing?  How are they organizing themselves?  After all, they are saddled with a 50 Trillion dollar debt liability and a warming planet courtesy of their Tenants.  I posted an article below about a High School Student from Issaquah Washington (read “Small Town USA”) with a head full of ideas.

Reading between lines:

Kids are looking for better ways to promote themselves to colleges, employers, and each other, with a twist; they want control and ownership of their data.  They see it as an extension of a business card rather that a bill board branding channel.  Yes, they are open for business and ready to produce insanely creative things.  However, there must be some intimacy in relationships which other social networking sites cannot provide. They seek quality over quantity in the next economic paradigm.  They seek simplicity and eschew the corporatism of  their media.

They are consummate sharers always aware of their own productivity.  Their new applications are a chain of productivity tools for other students creating a world where teenagers can find useful tips, tricks and products to get through the teen years successfully.  They are passionate about engaging the world on their level.  They are passionate about their role in providing value to others.  I, for one, welcome the prospect of turning the world over to it’s rightful owners – the kids.

Students develop Web sites for peers

Skyline Running Start student Adam Sidialicherif has a lot of ideas floating around in his head these days. The self-taught Web developer has so many, he even maintains in his bedroom a list of Web applications he wants to write to help his peers with numerous aspects of life, he said.

Unspoken Communication and the Bottom Line

As a community developer for several websites, I go through lots of different information sources.  I am looking for stories and nuance that demonstrate how conversation behaves like a currency.  The more I look, the more I see.  The strength of the analogy is quite remarkable.

Unspoken Values

I can also see how the unspoken communication stores as much value as the spoken communication.  In the U.S. , there are race troubles, financial troubles, trust troubles, and confidence troubles. Many fears and anxieties can be accelerated by Social Media in unpredictable ways.  First, information riles people up quicker than facts can follow, and second, the shelf life is much shorter as issues are dissipated by new ones.  Much is left unprocessed.

The Micro-Trauma

What happens when important issues in life go unresolved?  The life of a soldier may offer some clues where events can happen faster than the mind can process them.  Perhaps the life of a child offers some clues where every day brings so much new information that all new events  are processed in terms of basic necessity.   Perhaps any traumatic event such as a divorce, loss of a family member, or victimization places us in the realm of the unspoken communication.  This is a protection mechanism, not a delivery system.

As the World Churns

Billions of people hustle off to work and spend their day producing stuff in order to earn imaginary money so they can spend imaginary money.  This helps things move from the forests to the dumps. They have no idea the sophistication of the micro-trauma delivery system that acts on how they process information.

The unspeakable drives our fears, interests and concern and influences how we process future information.  I am amazed at how two people will arrive at opposite conclusions from the same data and the inability for those two people to speak to each other rationally.  Advertisers, politicians. PR firms, and traditional media can deliver bits of information and dissipate them quickly leaving an unprocessed data-packets behind.

Opting Out:

I just closed my land line, canceled cable TV and purchase a subscription to on-line music radio that I play constantly.   I “hide” the fringe mongers on my FaceBook, and get my news from Google alerts, feeds, and sources that align with what I am able to process mentally and emotionally.  What I cannot process, I have a network of trusted friends who can process the information and guide me through the issues.  I am quite happy, in fact, as many areas of my life are improving; health, friends, family, productivity, and finances…etc.

There is a tremendous opportunity available in delivering the right information to the right people with the intent of helping them to successfully and completely process information.  This is more work up front, but the loyalty in the long-run is exactly what politicians, marketers, and news sources are competing for.  Instead they are killing the patient to cure the disease.

In order to monetize in the new economic paradigm, help the unspoken communication become speakable and then listen to your friends.

Will Facebook Currency Intermarry with the US Dollar?

Facebook is testing a virtual currency, because it’s cool and they can do it. They are not alone, the gaming industry has been at it for a long time for people who want to be more “productive” in the game space.

There is no mention, however, whether a Facebook currency could be used as a medium of exchange in the event of hyperinflation and the crash of the US dollar.  I can find nobody, writing anywhere today, that is willing to cross this proverbial line in the editorial sandbox.

I personally witnessed a devaluation in Mexico. Like a tsunami, the “adjustment” happens relatively fast as values ’snap’ fluctuate relative to other currencies.  Then very interesting things start to happen in the community. People will literally empty WalMart because most goods will be cheaper today than tomorrow.

As with other hyperinflation events, black markets form around various items such as gasoline, cigarettes, or Levis as people require some medium of exchange in order to buy necessities such as groceries and cooking fuel.

A Facebook currency may just be what communities will use to get through the event.  However, a Facebook Currency would likely be temporary because it could not be used in Banks to capitalize assets – or, by government who can’t figure out how to tax it.

Now the question becomes, what type of social currency could be intermarry with dollars?

Here is a hint; the dollar is backed by debt which is a promise to be more productive in the future. Conveniently, “innovation” is also a promise to be more productive in the future. Two such currencies are of the same species and can intermarry yielding new economic life.

The degree to which any ‘virtual’ currency is interchangable with the dollar is the degree to which it represents human innovation. Chew on that, Facebook.

Creative Capital; The Hidden Hero

 

Social capital, intellectual capital and creative capital are the factors of production for the Innovation Economy; next economic paradigm.  Few people realize that Silicon Valley arose from a perfect storm of social capital from the 1960’s, the music and arts scene of the same era, and the proximity of academic centers Stanford and Berkeley.  The Bay area corporations may have been the beneficiaries, not necessarily the originators of innovation.

Creative Capital remains the least understood, yet most important element of the Next Economic Paradigm.  As we continue our march into the regime of social media it is imperative that we understand, support, and develop this critical factor.  We cannot “take it for granted” that creativity exists and will always exist.  It must be recognized, developed, and integrated into the fold of Social Media.

Here are some stats:

Wikipedia:

  • Social Capital has it’s own page with 6816 word article
  • Human Capital (Intellectual Capital) has it’s own page at 2597 words
  • Creative Capital does not have a page of it’s own on Wikipedia

Twitter:

  • I found 20 Tweets referencing “Social Capital” in the last HOUR
  • I found 20 Tweets references to “Intellectual Capital” in the last 6 HOURS
  • There were 20 Tweets that referenced the term “Creative Capital” in the last WEEK (mostly as a trade name)

Facebook Groups:

  • Social Capital Groups: 2000
  • Human Capital/Intellectual Capital Groups 1000
  • Creative Capital: 412

Linkedin Groups:

  • Social Capital: 69
  • Human Capital (intellectual Capital): 272
  • Creative Capital: 12

While the ratios vary, the trend is fairly clear.  Creativity is not often interpreted as a financial instrument otherwise it would be associated with the term “Capital”.  There are other factors as well that may play into this.  Artists are often self-actualized outside of the trappings of material possessions and therefore less visible as economic or political power brokers.   As a professional class, they may be under-represented in social media space.  In addition, creativity does not punch a clock and is likely not working for wages as such. Or they may be running around dressed up like Engineers :)

I’ve made the point that was intended so now I’ll leave the remaining analysis to a person who has done a great deal to advance the modern understanding of the field of study related to creative capital; Richard Florida – an unsung hero for whom Wikipedia does have a page:

Richard Florida (born 1957 in Newark, New Jersey) is an American urban studies theorist.

Professor Florida’s focus is on social and economic theory. He is currently a professor and head of the Martin Prosperity Institute at the Rotman School of Management, at the University of Toronto. [1] He also heads a private consulting firm, the Creative Class Group.

He is best known for his work in developing his concept of the creative class, and its ramifications in urban regeneration. This research was expressed in Florida’s bestselling books The Rise of the Creative Class, Cities and the Creative Class, and The Flight of the Creative Class. A new book, focusing on the issues surrounding urban renewal and talent migration, titled Who’s Your City?, was recently published.

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When The Kids Arrive – from MySpace

Several articles have come out refuting the death of MySpace as researchers try to make sense of the continued persistence of what many people consider last-year’s news. Here is an interesting article by Misiek Piskorski from Harvard Business Review answering the question “Where are all those My Space Users”?

“Both traditional and social media have declared MySpace dead. Even a brief scan of articles reveals that media mavens “don’t know anybody who uses MySpace anymore,” which reportedly is not a huge loss as the site “is ridden by spammers” and “its atrocious HTML, bLiNgY graphics, and horrific backgrounds” are offensive. Many of you reading this post probably do not know anyone who uses the site either.

Yet MySpace is the 11th most visited site in the world, with unique 60 to 70 million U.S. visitors every month. Even though the site is not growing, it is a far cry from “dead” if you ask me.”

But wait!

Notice how the “Media Centers” Los Angeles, Chicago, New York are in Facebook territory.  Also note how the technology power centers; Silicon Valley, Seattle, and Boston are also in the Facebook territory.  Academics from Harvard, Yale, Stanford are taken by surprise in Facebookville.  The great financial centers; Wall Street, LA, SF and Chicago are all Facebook.  Maybe the prognosis for the future of social media is skewed by the proximity to major media, academic, and financial centers. Centralized power is the antithesis of social media, Right?

Looking for Disassociation.

Here at The Ingenesist Project we have long been looking for a disassociation between main stream media and social media.  MySpace may be the social experiment that indicates a deeper and most promising trend.  Is it a requirement that a social media analyst be located in Silicon Valley? Do celebrity endorsements really mean anything tangible?  Does editorialized news always provide what people need?

MySpace Demographics:

The resulting sample is representative of the MySpace population. 53% of users identify themselves as women. Of all users below the age of 50, half are 21 years old or younger, and 30% are between the ages of 22 and 30.  Everyone knows that Kids don’t Tweet and late adopters to Social Media are also later-in-lifers.   The population of the world is finite, so when will Facebook level off as Twitter has?

Looking for reversal:

Next, we are looking for a reversal where Social Media drives s0-called traditional media – not the other way around. Can a blogger in Arizona drive the great branding strategies of the future?  Can a Webinar from Montana introduce the next age of enlightenment?  Can Nashville become the next great Venture Capital hub? Can a community of children in Florida band together to sustain the next great social movement.  Will democracy, voting, and public opinion be driven by youth culture? Will corporate innovation respond to social priorities rather than Wall Street Priorities?

Ideas whose times are coming:

There are many examples of the above miracles of social media, however, a disassociation and reversal with traditional media will be an event of flip-floponomics of great significance – a watershed moment in the history of the next economic paradigm.  Traditional media, understandably, may inadvertently be assigning a premature death to many great ideas yet to come.

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The Social Media Resolution; From Monet to Blue Ray

The Convergence of Knowledge

The Ingenesist Project and related blogs such as Relationship Economy and now Conversational Currency have long predicted that the resolution of social media space will vastly increase from  “Monet” to “Blue Ray”.  The segmentation and convergence of social media space will happen on two fronts: Knowledge Inventory and Proximity.

From Strategis:

“As Facebook balloons to over 250 million users, many voice their appreciation for Facebook’s small social network feel.  Unlike its so-last-year counterpart, MySpace, Facebook has successfully maintained a very personal feel, finding hundreds of ways to link the most relevant people, in the most relevant ways.

Even so, because Facebook has so many interesting people, useful content, and relevant apps available, many users would appreciate a broader search option that would enable the to quickly search ALL of Facebook’s content. Thus, Face says: “your wish is my command”. And so it is. Facebook has now announced that it will soon make the change allowing users to search the entire site, not to mention, do new things like share status updates with everyone, rather than just confirmed friends. Expect to see these changes in full effect some time within the next two months”

What’s in store for the next 2 years?

While the coolness of Social Media is still riffing through society as the late adopters drive huge growth, nothing “economical” happens until people actually get together and build something.  In order to build anything, there must be an inventory of parts.  All these parts need to be in physical or virtual proximity to each other. A financial system must support the initiatives of the entrepreneurs in any market.

The United States of Mind

We’re about 3% into this new paradigm today.  At 20% the corporate structure will become increasingly mushy as many corporate functions are now handled in Social media space. At 30%, cooperation will “compete” with competition as a business model.  At 40% a new currency emerges to hedge debt backed dollar with productivity backed “conversational currency”.  At 50% people convert general dollar backed holdings to ‘conversational currency’ holdings.  At 60% social priorities dominate corporate priorities. At 70% the Innovation Bond dominates financial markets. At 80% international borders become fuzzy as knowledge flows as easily as, say, avocados and T-shirts do today.  At 90% global currency backed by productivity, dollar, Euro, Yen all expire.  At 100%, the president is elected to a “State of mind”.

Hold on, not so fast….

OK, so that’s the problem with predictions, it’s hard to survive with one’s credibility intact.  Kudos to Strategis for showing us the future!!

It Takes Currency to Make Currency

If you’re a Flash game developer, you are concerned with how you can make a living from your creative and intellectual services. Fortunately there is a payment system so workable, that it may actually work.   Game developers can charge money both for their games, and for things within their games.

Here’s how it works:

1.    Player pays real money to buy fake money within the game.
2.    Player spends fake money on virtual stuff.
3.    Virtual stuff increases the value of the game.

The game developer can technically charge for whatever they like: level packs, hats, extended versions/director’s cuts, etc, etc. The sky’s the limit.

These types of transactions have been very popular in places like Korea for a long time, and it was amusing to see the initial resistance and resentment in North America to the idea. Meanwhile, North American Pioneers of such systems are drowning in money.

The Right [virtual] Stuff:

Now, suppose that Social Media could be modeled after a huge game where people act based on a set of incentives like, say, connecting with friends, accumulating followers for their blog, finding proverbial “gold rings” like employment opportunities, business opportunity, spiritual growth, professional advice, cheap airfare, fun things to do, product reviews, or political activism…just to name a few.

Suppose that in order to get from one level of the game to the next, they need to engage in conversation with another player.  Anyone who has been on Linkedin, Twitter, or Facebook long enough knows that the “right virtual stuff” is sometimes hard to acquire.  Twitter finally broke the mold with applications that now “sell” followers (I wonder if there were any Flash Developers behind this innovation).

A Mutually Inclusive Game:

Now, suppose the game was mutual such that some players need you a little bit more than you need them and they are willing to invest in your connection.  Similarly, suppose you need some players a little more than they need you and you too are willing to invest for their connection.  Finally, all players know that a mutual link between two appropriate players substantially increases the value of both players relative to the game.

It Takes Currency to Make Currency.

Immediately the engine of entrepreneurialism will ignite as people figure out new ways to play the game.  With a trillion dollar advertising industry, a trillion dollar Professional Placement industry, and a trillion dollar recreation/leisure/entertainment/family industry on the ropes, you can guarantee that innovation will be absolutely intense.  Welcome to the Innovation Economy.

(Editor’s note: This article was inspired by a piece authored by Ryan and can be found here)

The Value of Social Currency

How big is this opportunity?

Roughly 10% of the US gross Domestic Product can be attributed directly to the process of evaluating or examining transactions.  This represents a 1.4 Trillion Dollar of value in a system that may be better organized, captured, and preserved through social networks and the conversations that they produce.

Social vetting on a scale that would allow social networks to monetize would require that communities organize their knowledge assets specifically for deployment to a market.  All that an entrepreneur needs to do is fill this need.

What happens if they don’t?

The true cost of vetting may be calculated by what happens in the absence of oversight, transparency, and disclosure. When the vetting process fails, so too does the industry.  The continuing financial crisis of 2008 was fueled by a failure to regulate mortgage backed securities.  The financial Crisis of 2002 arose from a failed accounting (CPA) profession.

The losses due to the absence of vetting mechanism exceeds by many times the cost of having a system in place.  The financial crises of 2002 and 2008 have together wiped out nearly 20 Trillion dollars of value and incurred high volatility to financial systems due to failed vetting mechanisms.   The people who held the knowledge about the impending doom had no effective medium to share.

Who vets KNOWLEDGE assets?

The flow of money lives and dies by the vetting mechanism.  CarFax, Experian, Ebay, Google owe their existence to the ability to vet information – However, they do not vet knowledge.  The ability to deliver the right knowledge asset to the right place, at the right time for the right price is tantamount to being able to “manufacturing innovation”, that is, to print money.  Inversely, the ability to foresee the result of specific knowledge assets deployed to specific business conditions is the Holy Grail of entrepreneurs.

Social networks can carry out this very important function of the Innovation economy; organize, locate, and develop knowledge assets in a form which can emulate a financial instrument.

How are things changing?

Emerging ideas such as conversational currency, relationship economics, innovation economics,. nd new ways to value intangibles are appearing in research blogs across the web.  Disruptions to Global finance, environmental policy, and the emergence of global currencies are setting the stage for a huge transformation in how society organizes itself.  Traditional industries such as print media, advertising, and banking are failing. Nothing is sacred except change.

Where are these communities, and what do they want?

Many communities exist today in a variety of forms and functions such as communities of practice, fellowships, service organizations, professional societies, trades groups, affinity groups, etc.  Increasingly they are moving to Social Media such as Facebook groups, Linkedin groups, Affinity groups, aggregation groups, and political action groups.  Communities are using social media technology to engage the knowledge domain contained within them.

As such, they will soon have ability to foresee the result of specific knowledge assets deployed to specific business conditions.  This is the Holy Grail of modern civilization.

The Vicarious Search Engine

The search engine wars continue as both Google and Bing develop more exotic ways of arriving at the wrong answer.  Both commit the same error as all declining industries in social media space; assuming that they can predict what people want without engaging them in a conversation.

The first development is the predictive search notably pioneered by Amazon.com for predicting future purchases based on past purchases.  While predictive search is an improvement, the next step is the “vicarious” search, that is, when the search engine sees the world through your eyes – or someone Else’s – for your benefit.

The Web is Flat

The Ingenesist Project specifies a standard knowledge inventory that may be represented as a packet of code.  If someone wanted to see the web through the eyes of another person, they could buy a packet of their knowledge inventory.  Likewise, a web article would be tagged with the representative knowledge inventory code of the author.  Each comment or re post to a blog article would contain the knowledge inventory of its aggregated vetters.

The search can be done in reverse as well.  If I find an idea on the web and want to know who can execute it locally, I can simulate the knowledge inventory in one or more local people.  This is not trivial.  It literally allows an entrepreneur to manage knowledge assets that they did not know exists and predict content that does not yet exist.

Been there, done that?

Obviously there are privacy, security, and ethics issues related to others seeing the world through your eyes.  But what if every American was told 20 years ago that their identifier number for an insolvent social security program would be attached to their personal, medical, financial, and civil records then spun through Wall Street algorithms, sold worldwide to advertisers, politicians, banks, insurance companies, demographers, and ultimately hacked?  The cities would have burned.

So why can’t social mediators monetize?

The difference today is that if packaged correctly, we can own and control our knowledge inventory.  We can allow or decline access and we can revoke access – it happens all day long on Face Book, Linkedin, Twitter, and My Space.   On-line communities represent collections of knowledge assets.  The 400 Billion dollar per year advertising budget is on the table – up for grabs.  The 100 Billion dollar “head hunting” budget is up for grabs. The multi-billion dollar election budgets are all up for grabs. What are we thinking?

The likelihood of Innovation

The innovation economy will depend on business intelligence related to society’s knowledge inventory to match most worthy knowledge surplus to the most worthy knowledge deficit.   Entrepreneurs must know supply and demand for knowledge assets as well as where to find them at what cost.  Entrepreneurs need to predict competition, disruption, risks, and volatility in knowledge assets.  They need to conduct scenario tests before expending money.  They need to predict the likelihood of innovation and all of the options that they have in the future related to those innovations.

The Securitization of Knowledge Assets

Entrepreneurs need to securitize knowledge assets in order to finance innovation on the scale that will be required to offset our massive debt. This is how the innovation economy must play out.  We cannot depend on corporations or governments to do this for us.  People must control, regulate, anonymize, and manage  their own knowledge inventory.   If only they could see their world through the entrepreneur’s eyes – perhaps they need a vicarious search engine more than anyone.

Social Media Strikes Back

Money represents human productivity.

Recent headlines declare that 78 billion dollars worth of fuel and productivity are wasted each year by congestion on highways. 1.2 Trillion dollars per year in productivity is lost due to past failures in education. The US spends 7% more of our GDP on health care than the average of other developed nations leaving nearly 1 trillion dollars of unknown ‘productivity value’ in vapor per year. 200 Billion dollars per year is spent on war, whether necessary or not, that has not increased American productivity in an economic sense.

2.5 Trillion Units of Human Productivity

Without even trying hard, 2.5 Trillion Dollars per year in stuff not produced is wasted on activity that does not increase human productivity (stuff produced). Obviously debt is a promise to produce stuff in the future. But we’re wasting stuff now? At some point the logic falls apart but no matter how you look at it, money represents productivity and the only way out of this mess is to innovate at an astonishing rate.

Conversational Capital

In an earlier article, we conjured up a rough tabulation of productivity gains due to social media:

One billion messages are sent on Facebook every day. Suppose that each Facebook conversation has a net value of $1.00 per person. That comes out to 730 Billion dollars per year of human productivity saved.

Twitter is worth a cool 100 Million tweets per day. Let’s assign a net productivity gain of $1.00 per tweet delivered. That is $36 Billion per year in increased human productivity.

Suppose each blog article published increases human productivity by $0.50 each. With over 100M blogs, that is 10 billion dollars per day – or1.8 trillion dollars per year.

The grand total is 2.5 Trillion Dollars worth of conversational currency.

In Search of Waste Economics:

Now, return to the waste side of the balance sheet let’s reflect on the areas of impact that social media has on: transportation, energy, education, health care, and world Peace:

Social media reviews automobile quality and drives social priorities toward green industry. Social media allows people to find work close to home, social media vets energy systems such as wind, solar, nuclear. Social media is driving journalism to value added roles and away from corporate collusion. Social media provides richer and more current content than textbooks. Social media is driving social priorities over Wall Street priorities in health care, energy, politics, industry, and science. You Tube is seeing a 1700% increase in downloads as people set up video cameras all over the world searching and reporting injustice.  Little Brother is watching.

Social media strikes back

In order to predict where social media will strike next all we need to do is look for the waste economy; areas where world governments, institutions, and corporations are inefficient, wasteful, co opted, or corrupt.

How Does Social Media Affect GDP?

Gross domestic product (GDP) is a basic measure of an economy’s economic performance.  GDP is the market value of all final goods and services made within the borders of a nation in a year measured in Dollars.  Globally, GDP is equal to the total monetary income generated by production of goods and services in a country.

Gross Domestic Product does not take into account many important variables accelerated by Social Media and growing exponentially in economic influence.

GDP counts only industrial output, but…

Industrial output is becoming increasingly dependent on social networks and social innovation.  GDP does not take into account such non-market transactions such as open source development, crowd sourced innovation, conversational currency, social capital, creative capital, or intellectual capital exchanged between people in diverse social networks

GDP reflects Wall Street Priorities, but…

Wall Street Priorities are increasingly challenged by social priorities. GDP does not account for sustainable business practices, heroism, mentorship, activism, volunteerism, social networking, uncompensated innovation, and community involvement.  GDP does not account for quality improvements and social multipliers such as aggregation of social media, increasingly powerful computers, acceleration of conversations, online etiquette, multi-media, and social editorial services.

All of the above exclusions are valuable, because…

These exclusions add value, they store value, they create value, they distribute value, and they exchange value.  If we called it a financial instrument that is highly convertible, extremely liquid, and easily transported it would describe a currency by any definition of the word.  For the purpose of this discussion, call this currency the “Rallod” – or Dollar spelled backwards.  The Rallod is the currency of the new American economic and production paradigm.

The Invisible Currency

For Example; Twitter is doing in Iran what America has been trying to do in Iraq for 8 years.  Face book, LinkedIn, and the entirety of social media space is producing many times the effectiveness of the $200 Billion U.S. advertising industry in terms of driving people to specific action. Social vetting platforms such as blogs, commentaries, groups, and content aggregation have increased the efficiency of markets by vastly reducing arbitrage opportunities while also identifying scams and corruption.  Human productivity is being converted to Rallods and there is no politician, executive, or white collar criminal anywhere in the world who is not deeply concerned about this invisible currency.

The Best is Yet to Come:

The “Last Mile of Social Media” is analogous to the last mile of broadband Internet – the marginal cost of reaching every person in every household and tightening social networks to extremely high resolution, is diminishing rapidly.   The Last Mile will bring communities together to vet local politicians, corporations, products, and policies.  The Last Mile will formulate a knowledge inventory combines with close proximity of knowledge assets and a percentile search engine to predict outcomes.  The Last Mile of Social Media will duplicate every function that exists in a corporation except it will be built upon the social media operating system; aggregated, amalgamated, sustainable, and reflecting social priorities.

So what happens to GDP?

GDP by current measure will reflect only the value of the “dollar”, not necessarily the value of the human productivity.  Perhaps it already does.

The Invisible Currency Among Us

Liquid Swords - by Megan Olson

Liquid Swords - by Megan Olson

Invisible Currency

On my birthday, I received many greetings on Facebook from friends and family.  So, let’s say for example that Hallmark sold 10 less cards (@$3.95 ea), the telephone company sold 10 less long distance phone calls phone calls (@$.60 minute),  FedEx delivered no additional packages, oil companies sold no gas, and my friends did not deploy, say, 20 hours (@$25/hr) of human productivity buying stuff, licking stamps, or delivering mail in my honor.  Total productivity savings can be valued over $500.00; or roughly $50.00 per message.

Conversational Capital

One billion messages are sent on Facebook every day.  Each message sent and received constitutes a conversation.  Each of these conversations has a value that can be expressed in terms of productivity saved and assigned a dollar value. Suppose that each Facebook message has a value of only $1.00 per person engaged in a conversation.  That comes out to 730 Billion dollars per year of human productivity saved – enough to fund TARP.

Twitter is worth a cool 100 Million tweets per day.  Let’s assign a net productivity gain of $1.00 per tweet sent (not received).  If you think that tweets are not productive, follow the Iran Crisis; a revolution fought with liquid swords.  So let’s assign Twitter $36 Billion per year in increased human productivity.

Next, according to Google analytics, about 100 real people spend enough time on my little blog every day to read at least one article.  Suppose each blog article increases human productivity by $1.00 each. Technorati tracks well over 100M blogs.  That is 10 billion dollars per day – or a whopping 3.6 Trillion dollars per year.  Let’s discount that by 50% to only $1.8T in fairness to the skeptics.

The grand total is 2.5 Trillion Dollars worth of conversational currency – 2 times the 2009 national deficit and 5% of America’s entire debt obligation – and growing.   Where is all this productivity going?

What’s happening is what’s not happening.

People are NOT sitting through hours of TV commercials anymore.  People editorialize their own news and do NOT watch what is designed to corrupt them.  People are NOT letting their ideas die unheard.  People are NOT letting politics run them down and have now elected health care, the environment, and the end of warfare to the Presidency of this and other nations.  People have become far more focused and more productive through the rediscovery of family, friends, Art, Music and social priorities over debt enslavement.  Next, social media is coming to the neighborhoods.

Millions of people practice “social media” in their spare time.  This is invisible productivity that effectively magnifies the productivity of others with an astonishing multiplier effect.  Craigslist, CarFax, Zillow, Epinion, Amazon, and Expedia are all eliminating arbitrage opportunity and sending brokers scurrying for a real education. Product reviews are killing the scams and delivering the right product to the right market.

The Anti-buck

Maybe the Dollar is not so overvalued after all. Maybe the dollar deficit is counter balanced by this new invisible currency.  Suppose the more inflation that occurs, the more this invisible currency will affect the overall economy.  Suppose people are hedging dollar currency with conversational currency.  Suppose social priorities are replacing Wall Street Priorities.  Suppose we are approaching a new equilibrium rather than an impending free fall – except for those who try to control it.

Special Thanks to Megan Olson

The Second Impression of Social Media

As we move away from the ROI valuation model for social media and adopt a more dynamic ‘options’ analysis, a different picture emerges.  People are trading options; that is, the right without the obligation to exercise an action.  The next economic paradigm will emerge as a function of people exercising their options.

What are you doing here?

On the surface, there appears to be a lot of ‘feel-gooding’ on linkedin, Facebook, and Twitter, etc.  It is easy to brush them off as trivial, non-productive, and delusional.  I often fall victim spending too much time on these devices and have asked myself, simply: “why?”

Computer Enabled Society

At second glance, however, I have personally developed a few extremely profound, important and valuable relationships through “computer enabled society”.  People who I have never met in person have stepped way out on a limb to help me along.  As a result, I have given these people the option to access my network and they have done the same for me.  Our common purpose makes each relevant and valuable to the other and each are willing to support, mentor, and elevate the other.  We exercise options together.

Impressive Results

The distinction is that what once was a “first impression” – firmness of handshake, fashion, and physical appearance – has become the “second Impression”.

What was once the “second impression” – intellect, wisdom, talent and generosity – has become the “first impression”.

People exercise their options accordingly; first impressions leads us to action.

Evolution or Revolution?

Social media does not care if you are rich, poor, young or old, beautiful or homely.  It does not care about the color of your skin, fat or thin, physical ability or disability.  It does not care what kind of car you drive, clothes you wear, or the size of your home. Or does it?

For every revolution, there is a corresponding evolution.

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