Archive for the ‘social networking’ Category

Why do people participate in social Web 2.0 ?

Sunday, October 4th, 2009

So you’ve heard about Web 2.0 and you’re probably at least dabbling in it, but do you know why you’re doing it? If you’re a business owner, do you know why your customers/prospects participate in it? Do you know why you should also participate?If you’re in the midst of building a “social” strategy for your company, or trying to develop a social web application, you’ll find this useful.

I’m currently reading Groundswell by Charlene Li and Josh Bernoff. I highly recommend this book. Here’s their web site on the topic.

Why do people participate in the social web? There could be many reasons and it’s different for everybody, but here are the big buckets that Charlene and Josh suggests, and I certainly fit a few of these.

* Keeping up friendships. I’m on Facebook and I love it. I see it as a way to “scale” relationships in a way, because it’s so difficult to keep up with everybody, given your busy schedule or geographical distance.

* Making new friends. Dating sites are an obvious example, but there are plenty of other examples of people getting to know each other (in real life) without first getting introduced face-to-face. This definitely resonates with me. I first met my first online buddy Andy from Germany (while I was in Malaysia) over IRC – yeah, back in .. 1996 (+/- 2), and we’ve been real good friends ever since.

* Succumbing to social pressure from existing friends. This is largely true for the late majority and laggards – maybe the early majority. See technology adoption lifecycle. That’s right, if you’re laggard – that means you’re sloooow. Also see Crossing the Chasm by Geoffrey A. Moore.

* Paying it forward. Having seeing and believing that a site is genuinely valuable/useful yourself first hand, you may be compelled to help out and contribute, however little, maybe it just that 1 click to pick 3.5 stars out of 5 stars on a review.

* The altruistic impulse. People do good in the offline world, surely this can be extended to the social web. We have microfinance to help people get out of poverty (See Wokai, Kiva), people writing software and giving them away for free (open source), and free advice online from everything ranging from motorcycle problems, to legal and medical advice.

* The prurient impulse. What Charlene and Josh describes as an endless parade of exhibitionism from people online that are fascinating, sexy, entertaining, and stupid. Kind of like picking up the TV remote and flipping the channels.

* The creative impulse. Not everyone is a professional programmer, writer, photographer, but the Web is a place for anybody to showcase their portfolio and get feedback, a form of payment for the creative mind.

* The validation impulse. People feel validated of their expertise when they help others online for free. Validation is a powerful driver for social networks; people put themselves out there and the community reassures them about their place in the world.

* The affinity impulse. Maybe your hockey league has a Facebook fan page, your favorite NHL team has a social network where all the fans unite, maybe the motorcycle gang you just joined organize events online; surely there’s a group of people who share a common interest with you that are actively engaging the group online. However odd, rare, niche an interest is, is not a problem. The long tail of the web almost guarantees you will find someone in the world who shares it with you. And it’s better t be alienated together as a group than individually as a person, but I digress.

I highly recommend it if you’re looking to leverage social Web 2.0 to help your business in some way. Groundswell: Winning in a World Transformed by Social Technologies

A Thriving App Economy Key To Telcos, Social Networks, and Handset Manufacturers Survival

Monday, June 8th, 2009
  • Amazon.com was started with the idea that they would make money by shipping physical products. Today’s Amazon makes money by building a market place where every link that take you to a product is in fact an ad (revenue share). They make more money, not by shipping goods, but by referring customers to other goods.
  • In 2008, 3 billions apps where downloaded on the Internet, most on social network and mobiles. That’s 40-50 million daily active users
  • Today < 5% are paid apps, but that's ok because numbers shows that paid apps are trending up
  • Average app price people pay for is the price of an iTunes song, $0.99 – $2.99. There may be a threshold where people won’t pay
  • Many people have call-waiting which cost them $3.99/month, but do they even use it once a month? But you don’t hesitate paying for it again because they want the convenience of having it. Users will pay for apps
  • An app economy is emerging, with lots of little companies. There probably won’t be a big winners, but if you look at the aggregate, this could be a 1 billion revenue stream opportunity, perhaps a $10 billion market cap business.
  • It’s opportunity is viable, real, out there, just won’t support a large company today. A real trend that will continue grow. As Facebook grows, as smartphone industry grows, there’s going to be a need for new revenue sources to support these companies & activities.
  • Telcos: as voice rates continues to drop for telcos, flat-rate data plans begin to fill in these revenue gaps
  • Facebooks of the world: ad won’t support the model, need app-based economy
  • Take off your US-centric lens. People in other countries may not have iPhones but they do consume a lot of data apps
  • AT&T’s of the world: walled-gardens are coming down, because they are seeing the revenue opportunity. They will build their own app stores and take their 30% margin on the apps
  • As iPhone prices come down, AAPL will not be able to make money from hardware, they will increasingly need to rely on revenue from apps

The above is Ram Shriram‘s technology trend prediction, from the 11th Annual Top Ten Tech Trends at the Churchill Club. I couldn’t find the transcripts from that 2-hour long debate, so yours truly had to hit the YouTube replay a few hundred times over to capture the above. Too good to not capture!

You can watch the entire thing here: