Archive for the 'economy' Category

Happy User Labor Day!

Today is Labor Day, a celebration of the economic and social achievements of workers around the world. Just the right time to introduce our new project, User Labor, to address the issue of the economic sustainability of social web services. 

ULML logo

With User Labor, we propose an open data structure, User Labor Markup Language (ULML), to outline the metrics of user participation in social web services. Our aim is to construct criteria and context for determining the value of user labor for distribution. We believe that universality, transparency, and accessibility of user labor metrics will ultimately lead to more sustainable service cycles in social web. 

Web 2.0 services have been assuming the availability of user-generated content in exchange with the utility they offer. For example, in a (needless to say, social) photo sharing service, people upload photos, which create traffic. Traffic creates advertising revenue, which sustains the service. In this cycle, what is supposed to sustain user-generated content is access to the service. However, some user-generated content creates more value for the service than the other. So, how does the service sustain the one that offers higher value, relative to others? In order to answer that question, we need to know how much potential value (i.e. ad revenue) a user generates with how much traffic, through how much content. This is the idea behind User Labor, to determine metrics

What next? Potential outcomes are, finer use typologies (instead of just power user), richer service offerings (instead of just free and premium), even a new resume format for users to be used across online services… Also, discussions to emerge around how different users can be rewarded, in what terms.

You can read more at User Labor website. 

Also see Burak, my partner in crime reporting on User Labor in his blog.

Bidirectional consumption in web services

A couple of late night snapshots from my sketchbook on two-way consumption in (mostly ad supported) web services.
consumer_user

consumer_service

The user is the content

Yesterday, a bunch of social network services (Orkut, LinkedIn, Friendster, Hi5, Engage, Ning, etc) agreed upon a new platform called OpenSocial, initiated by Google. With this new platform, developers will create applications that work across services and people will be able to reach out to their friends in other networks through these applications. Basically, this is like Facebook’s functionality enabled across other social network sites. The scale has just got much larger.

My Friends on Facebook
My friends in Facebook, created by Friend Wheel Application

We are witnessing the emergence of a new medium, where the user is the content. It’s no coincidence that social advertising networks upon these platforms are being developed as we speak. From a business perspective, there is a huge potential. The continuity of social interactions through little applications (as we see in Facebook) can be overwhelmingly high in these networks, which is free content for the service. Applications, or ephemeral tools for engagement are developed virtually at no extra cost. The more user activity, the more knowledge for the service, the more basis for targeted advertising.

I think it would be quite fair to say that users work for these services. With advertising or other revenue models, the service can make a lot of money through the immaterial labor of users. The scale is no joke, we are talking about approximately 100 million users (and increasing).

Two questions:

1/ Will the users ever get compensated for the value they bring to the service?
2/ If so, how much would that be and who will determine this value?

Related links:

Also check out Burak Arikan’s provoking points on OpenSocial at his blog.

Meta-Markets: An online stock market experiment

Meta-Markets Stock Page
A stock’s detail page in Meta-Markets

Meta-Markets is an experiment on which I have been collaborating with my two close friends, Burak Arıkan and Cenk Dölek. Burak, the ultimate prototyper, single-handedly put the core together with his endless energy and spent by far the most effort on it. Cenk, the perfectionist, has created the interactive graphs for stocks and is tying lots of loose ends together to make things work at their best.

One of our aims with this project is to explore the value of online immaterial labor through leveraging the mechanics of stock markets. We have questions. How can we ascribe value to the creative work that people put in to exist - express themselves and connect to others - in online environments? Can we approach these efforts as products? If these products are one’s intellectual property, can owners offer their products to public for raising capital and to make better products?

Meta-Markets Activities Page
Market activity in the last 48 hours

To explain things in a more practical way: In NYSE or NASDAQ people trade shares of companies. In Meta-Markets people trade shares of bookmarks, profiles, videos, or blogs. Just like companies, socially networked products have ever growing values. When product owners issue their shares in Meta-Markets, they raise capital – today play capital, but tomorrow real capital.

Currently, we have markets based on product categories such as blogs, photos, etc. And we selected pilot services for these product categories based on the accessibility of their APIs. In the end, Facebook, Flickr, Delicious, and Feedburner became our initial set. Obviously, these services are represantative of their respective categories and we are planning to introduce more than one service in each category as long as we have access to their APIs.

Meta-Markets Home
4 markets active, more to come

Our experiment is still in its early stages. In tech speak, we are in private alpha. We are dealing with everything from server load to semantics on a daily basis. Our user base, which started with friends and friends-of-friends, is now extending to a variety of curious, ambitious, and tolerant people. Hopefully pretty soon, we will come to a stable enough state when we can open up the membership to all creative souls.

If you would like to keep an eye on what’s happening in Meta-Markets, check out our development journal.

Close
E-mail It