TheWayoftheWeb

I just read the piece by Mark Mulligan (of Jupiter Research), reposted on PaidContent, on Why Music Can’t ‘Just Be Free’, and I have to say I disagree almost entirely (As you can see in my comment on the bottom of the PaidContent article).

As I realised in writing that comment, ‘Copyright is a byproduct of the business model put on content creation - not the reason that content was created’. Mark points to the introduction of copyright for music at 150 years ago, but music, and music-derived revenues, existed for far longer pre-copyright than after it.

And this is in no way suggesting that content creators of any kind should not be able to be rewarded for their work. I’ve spent almost a decade writing for a living, so I’m very appreciative of the money it created - but I’m also aware that it’s a priviledge, rather than a creative right, and that it’s necessary to find the most appropriate ways to derive value from content creation within the current environment.

The issue of revenue is probably the hardest, but there are more and more examples of revenue from freemium options, live gigs, merchandise etc coming all the time.

The easier point to remove is the idea that if content is free, we’ll be inundated with rubbish and won’t be able to filter out the good stuff. If that were true, there would be no head to The Long Tail, no A-list of bloggers, and I’d be making as much money as Techcrunch.

And that content creation is not driven by revenue - Wikipedia is just the biggest example.

On the plus side, paidcontent also had some interesting quotes from a Billboard interview with EMI which shows a lot of more promising developments.

1. EMI was the first major to try dropping DRM.
2. Focus not on sales
3. Regaining innovation

I often refer to social media marketing starting when a caveman went running to the next cave to tell his neighbours about this new thing he’d discovered called ‘fire’. It’s something I’ve referred to in internal and external presentations, and it hopefully drives home the fact that recommendations between friends is something that has gone on since humanity started communicating.

The reason it came to mind recently is that I’ve finally got round to reading a book recommended to me by a good colleague a couple of years ago. Ironically enough, having bought 7 Habits of Highly Effective People by Stephen R Covey, I got about halfway through, got distracted, and didn’t actually finish it!

I’ve finally got round to rectifying that slightly abysmal failure, and part of the book struck a chord with me when Covey talks about researching the ’success literature’ of several hundred years, and the fact that early examples all centred around a principled ‘Character Ethic’ approach, rather than the 20th century methods of quick fixes.

And when we all talk about The Best Practices in Social Media, we all talk about ethics such as honesty, respect, listening, being human etc.

Perhaps some of the quick fixes we’ve used for our individual success and our marketing and advertising really are just momentary blips in the evolution of human communication? Maybe that’s one of the reasons the current economic system is being questioned as much as it is at the moment? And why people like David Parmet are calling for bigger differences and effects to come from social media and networks. Along with the likes of Tim O’Reilly and Shel Isreal (links in David’s post).

Maybe it’s also why the likes of myself and David Cushman are impatiently trying to solve the problems of showing returns on investment in social media.

And whilst writing this I’m reminded of the prioritisation method of looking at the things which are Important but not Urgent, and concentrating on them to avoid them becoming Important and Urgent as much as possible. Too often it appears we’re looking at the short term, and not preventing problems before it becomes crisis management.

So if you fancy becoming more effective as an individual or a company, try 7 Habits of Highly Effective People. Combine being effective with reading books on understanding the new economy, how ideas spread, and how to join in, and it seems to me you’ll have caught up on Web 2.0 and the last couple of hundred years!

A new social network site is offering to pay users for taking part. Yuwie aims to reward users for activity and referring more friends to the network, taking inspiration from old-style pyramid schemes.

You get paid for changing your profile, posting content, and when users look at your profile and content. And you get a share of everything from anyone you introduce, and anyone they introduce, up to the 10th level. So far, so multi-level marketing.

As for the actual site, it’s OK. It’s no Facebook beater for functionality, but it’s comparable to Myspace etc, with more focus on connecting and gaining views than actually on your profile appearance. Not surpising for something which is about getting an absolute shedload of connections in an attempt to grab some cash.

The scheme itself gets detractors picking up on the pyramid nature of the scheme, the high input versus low reward, and the encouragement to spam everyone you’ve ever met in the quest for a few more cents. And I think they’re all valid points.

If you do still want to try it for yourself, obviously I have to advise you to use my referral url: http://r.yuwie.com/badgergravling

I also have to say that so far, any commentary on the site gives rise to spam posts from Yuwie fans/employees/bots, so I look forward to 20 comments on this post tomorrow. And then deleting them all.

The interesting thing for me is how many people will be enticed to take part in the experiement. Most Long Tail and UGC fans promote the idea that the prosumers in the long tail aren’t doing it for the financial reward.

I’d strongly and heavily debate that someone spending hours creating videos, songs, apps and blogs isn’t looking for some type of reward, and that it’s a lack of opportunities to be reimbursed currently which has meant a focus on reward from social recognition and status etc. Sharing and exchanging ideas and knowledge improves the standing of everyone involved, but that tends to be more readily accepted by those who can afford to do it.

And when something like Yuwie comes along offering the chance to combine financial reward with social status and recognition it’s an interesting case study.

As of tonight, Yuwie is claiming 183,448 users, 78,471 this month, and 2697 today. That’s a fairly good curve to be on for the short term. How the business idea and interest pans out will be more interesting, as more people will be spreading the word about their good and bad experiences, and others could adapt the business model.

Interestingly Alexa shows a huge growth for Yuwie over the likes of Virb (which is a far nicer networking tool for design etc), although obviously it’s far smaller than most of the established names at present.

If not, there’s always the low paid, labour intensive prospect of Amazon’s Mechanical Turk. Or Deviantart for artists. Or for musicians, how about Amie Street to upload and sell your music for a web 2.0 crowd set price.

There’s a lot of options for the talented but financially uninterested. And the one great thing about the internet is that if you invest the time and effort, you can hedge your bets by going for more than one outlet…

Now that’s a Long Tail…

Developing my ideas about the missing piece of The Long Tail theory has taken a surprising turn, as a rather hopeful email to Chris Anderson, The Long Tail author and Wired Editor-in-Chief was met by a prompt and thoughtful email helping me to crystalise some of my ideas… Just goes to show that the connectivity of the internet is more than theory - it’s reality. And also helping are my constant discussions, disagreements and challenges to blog chum Dave Cushman from Faster Future…

As I said previously, Chris does a superb job of reminding readers that the new culture of niche interests in the internet-accessible long tail does not mean the end for big entertainment companies producing hits aimed squarely at the short tail. But the justification for this is left implicit, understandably, as it’s the Long Tail which is the radical new idea. Just a shame then, that a surprising amount of people manage to completely miss the point and go straight to proclaiming all mass media dead.

But there are reasons for these big companies to survive, as they transform into agents of the new prosumer, rather than content creators.