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October 09, 2008

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Chris Brogan...

Welcome back from the tour. That's brutal.

I agree with your premise. I think the gift economy will benefit, and that people who can do a little something more for people will be more motivated to do that kind of work to get a leg up on the less clueful competition.

I wonder if the Advertising won't diminish as much as it will shift harder into CPA versus CPM. If I'm an affiliate marketer, I can get far better play from an ad that drives a lead or sale versus someone just getting more pageviews and dubious sales value.

Freemium? I agree again. I think that companies who've started at free pretty much can't just start asking for money. Jott.com did, and I stopped using the service. Haven't looked back. I imagine there will be more.

Get some rest, and enjoy the family.

Crosbie Fitch

You're still refusing to consider en masse purchase or commission (the keenest section of the audience pays as a collective - for a work that is then freely copyable to the rest of the world).

Perhaps this is still over your horizon or possibly even underneath your radar?

Thomas

I don`t know if there is really a positive effect on the Gift Economy. People who are under stress or even have fear of losing one's livelihood , are not the people who are spending days to edit Wikipedia stuff, or helping society or develope a new facebook app just for fun...
And only a small percentage of people in certain industries... like media, software developer, design ... are able to use these "reputational currency"...
So I think to see a positive effect is highly speculative...
Just a thought...

Chris Anderson

@Crosbie. I'm afraid I'm not following. What you describe sounds either not free or covered by one or more of the other models. Could you give an example?

Ryan

I think what Crosbie is suggesting is a model where a consumer (legally) purchases something and distributes it (illegally) to people not willing to pay the original cost. An obvious example of this would be illegal music file-sharing.

Not sure I'm right. Also, not sure if there would be a legal version of this model.

bksmyth

Thomas ~
There will be a positive result found within the gift economy as mentioned, although it will be limited to those who have the initiative to take "spare time" and make it "their time". The unknown is how many people will take advantage of the resources around them to enhance their abilities between jobs. If you do not know, learn. There are an abundance of people willing to teach because they are(or should be)excited to share what they know in search of information that is new to them.

I go to my auto mechanic based on his reputation, why does reputational currency have to be limited to computer technology?

Paul

Slightly off topic, but in the realm of 'free' models. Where do point systems fit in the 'free' world? Systems like traditional airline miles programs or hotel rewards? Many companies who offer these programs construct them to make a positive return on their own (not counting repeat business from the program). Part of the reason is frequent fliers or hotel users are highly qualified customers for other services and perceive themselves to have 'currency' (points) to spend.

It strikes me that is you have a free (or 'freemium') web service you could in some way re-monetize time-spent on the service by allowing users to build up 'currency' (points) for use. The more points you earn, the better discounts you can get on a range of associated goods/services that third parties pay you for the privilege of selling directly to your highly qualified customers.

Sort of like a rewards program for web services.

A system like this would have to have some kind of protection from getting gamed (using the service to amass points at no cost). But I have to think some business models might find it useful.

Forgive me if it's old ground.

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Crosbie Fitch

See Kevin Kelly's 1000 true fans (http://www.kk.org/thetechnium/archives/2008/03/1000_true_fans.php).

For example, a thousand users of a GPL software package want a certain feature added, so they all chip-in with a pledge of $50 each (also see http://micropledge.com/about ). When the package is released the developer gets $50,000, and the users get their software. The software being GPL, can then be legally copied for free (without royalty).

It can work for music too. A musician's 1,000 best fans pledge $1 for the next single (see http://quidmusic.com) and they get $1,000 when they release it. The fans get the song - but then it's also free to anyone else.

Josh Neumann

I agree with bkysmyth, while you might think the gift economy would be a positive, the reality is, most people will not have the intitiative to make it happen on their own, and will use the poor economy as an excuse for not taking action.

As always, this means even more opportunities for those who don't wait but take action now. Also, let's not forget all the opportunity that is now available wit the stock market, as many companies are undervalued.

As always, there is opportunity for the small minority willing to take advantage of it.

Eric Mauriello

I mostly agree and disagree, here are some minor modifications:

Ad-Supported: Online advertising growth will not slow considerably. I agree that offline is in trouble but even this spend will take years to be reduced and/or migrate to online. Humans just don’t move that fast and they are not comfortable with massive change. Playing with ad dollars is like cutting your oxygen intake, people get very scared and thinking they can’t live without it.
Result: Positive – for Online for the foreseeable future but Negative- for Offline

Freemium: The issue with the premium part is there’s always another competitor/startup who is willing to include those feature into their free offering to gain market share. This model is what I call a “pipe dream.” You are always thinking that you are going to convert but it rarely happens in the scale needed to succeed. Has anyone ever purchased Winzip Pro? I do like the notion of free offerings to drive brand awareness and mind share but the main business model should be solid and independent. Result: UNCH

Gift economy: I love the “spare cycles” concept and I believe in the power of 2.0, but I question whether or not it holds up during extremely high levels of unemployment ( I’m in NYC) It’s easy to spend you spare cycles during work or play when times are good and you’re being paid / you’re bored because your productivity is beyond your workload. But to spend your time “gifting” when you’re trying to make ends meet is like thinking a castaway will be conducting outdoor hobbies while attempting to survive on a desert island. The stress of unemployment could change the gift economy. Result: Modest Positive

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Pedro Nunes

I read an interview of yours in the Portuguese newspaper "Público" and I love it, the Freemium concept must give the Economy Nobel Prize and as they say you must live during the next 25 years, and I hope so.
Your idea gives me the inspiration to a new business...
I will visit your blog again and again to learn more.
Best Regards,
Pedro Nunes

Lisa P

This is great opportunity for those suffering from the economical crisis in our present situation. Payday loans are designed for short-term usage. They are very useful when you’re stuck in a situation that requires quick cash and payday is still a while away. During any recession, like the one America is currently undergoing, there's peace of mind knowing that payday loans are still available when necessary. But what’s the difference between a recession and depression? Do they mean the same thing? Yahoo Answers has recently responded to the “Asker” who wanted to know the difference between a recession and depression, and she wanted the information in “girly terms.” Despite the good laugh on what girly terms actually mean, she was provided a very straightforward answer. The American economy is examined by quarter. It’s considered economic growth when production is high. Three consecutive quarters (nine months) of diminished production is considered a recession. When a recession is deep and long it is then considered a depression. Several common characteristics of a depression include long- term unemployment growth, low prices and low levels of trade and investment. So, the difference between a recession and depression is that one is bad and the other is worse. This really needs support of payday loans. If you need a payday loan to help make ends meet, don’t hesitate to try. Click here for more information on Payday Loans.

KT

Thanks for the analysis about Freemium sites. I am still hoping my upcoming ad supported dating site will do okay. However, your post convinces me about adding some paid options that I have been toying with.

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The recession is here. We’re told to tighten our belts and brace ourselves for redundancies, wage and service cuts. Politicians and business leaders are united in saying we should pay for a crisis not of our making [see box for a brief history of the crisis]. A recession is simply when the economy shrinks for 6 months in a row. What this means for individual firms is a squeeze on profits, and we can be certain that unless we do anything about it, that’s going to mean a squeeze on us, as our employers try to protect those profits.
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With the recession we are currently facing this article is very informative. Now, it's up to us readers which one we will choose.

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Losing one's livelihood , are not the people who are spending days to edit Wikipedia stuff, or helping society or develope a new facebook app just for fun...
And only a small percentage of people in certain bedroom furnitureindustries... like media, software developer, design ... are able to use these "reputational currency."

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منتديات

Result: UNCH

Gift economy: I love the “spare cycles” concept and I believe in the power of 2.0, but I question whether or not it holds up during extremely high levels of unemployment ( I’m in NYC) It’s easy to spend you spare cycles during work or play when times are good and you’re being paid / you’re bored because your

منتديات


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highly qualified customers for other services and perceive themselves to have 'currency' (points) to spend.

It strikes me that is you have a free (or 'freemium') web service you could in some way re-monetize time-spent on the service by allowing users to build up 'currency' (points) for use. The more points you earn, the better discounts you can get on a range of associated goods/services that third parties pay you for the privilege of selling directly to your highly qualified

maxx

However, your post convinces me about adding some paid options that I have been toying with.

Robin Smith

You may also ask your leads service provider for a leads exchange offer incase you fail to earn good profit from their offered set of leads before & without any extra cost.

http://mortgageleads1.xanga.com/714133465/useful-tips--suggestions-for-buying-payday-loan-leads/

Gene Ameriloan Search

I completely agree with you about how it will be affected. Especially I've interested in Gift economy. There are many factors that have any influense on every point in our life and financial situation. We can get in a situation when we'll need faxless payday loan. And we should know more about it.

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Tidbits

The Long Tail by Chris Anderson

Notes and sources for the book

FREE was available in all digital forms--ebook, web book, and audiobook--for free shortly after the hardcover was published on July 7th. The ebook and web book were free for a limited time and limited to certain geographic regions as determined by each national publisher; the unabridged MP3 audiobook (get zip file here) will remain free forever, available in all regions.

Order the hardcover now!