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Twitter is paying my rent, Marshall Kirkpatrick says. Specifically,

I don’t mean they’ve hired me as a consultant, though I would love that, I mean Twitter is great for news discovery. Read on for my thoughts on how you can use Twitter more effectively, but keep in mind that communication has its own inherent value – I swear that’s what I like best about Twitter!

How is it paying my rent though? Earlier this week I was remarking (on Twitter) about how many of my recent story leads came from Twitter. I counted and at that time 5 of my last 11 stories were based on news I learned first from my friends on Twitter. It was amazing.

This is a perfect example of a because effect, which is what happens when you make more money because of something than with something. We first talked about this back at Bloggercon 3. Some retrospective on that here and here.

But gradually it’s going to dawn on people that not everything needs a “business model”. And that far more money is made because of the Net, blogging, Linux, IM, and even businesses such as cellular telephony, than is made with any of those things.

Very interesting demo of how Facebook Beacon works. Never mind (or go ahead, mind) that it’s at moveon.org.

Note at that second link how Facebook addresses advertisers and not users, in the second person voice. Enable your customers to share the actions they take on your website with their Facebook friends.

An interesting recursive circularity there: Facebook’s users are its customers’ customers.

Via Jonathan Trenn, via Chris Abraham.

So many comments, so little time. I have to run to a bus in the rain shortly. So I’ll respond to just one: Don Dodge’s.

Yes, it’s true that “consumers sometimes forget the bargain they made in exchange for the free services”.

But it’s also true that almost nobody reads Facebook’s “Terms of Service“, much less anybody else’s. Not long ago I posted about the terms for Verizon and AT&T services. Each was over 10,000 words long and boiled down to “We can cut you off at any time for any reason we like and you have no recourse.”

All these ToSes are asymmetrical to a degree that verges on slavery. What’s the point of even looking at them? If we want the services, we do the deal. If the service is free, all the better. That these bargains are faustain has been known for the duration.

Do we have to continue to make them? The answer is yes, as long as we deal with the devil from a position of near-absolute weakness.

That weakness was more than learned — it was institutionalized — in the Industrial Age. That was a long period of business history during which we came to think that markets are all about What Big Companies Do, and that a “free” market is “Your choice of walled garden”. I wrote about this in Go from Hell, back in September. Here’s the section that pertains most to the Facebook Matter at hand:

Alvin Toffler explored this irony in The Third Wave, published in 1980, where he said:

  (The Industrial Age) violently split apart two aspects of our lives that had always been one… production and consumption… In so doing, it drove a giant invisible wedge into our economy, our psyches … it ripped apart the underlying unity of society, creating a way of life filled with economic tension.

I wrote about that split, that tension, in Listen up, back in 1998 — eighteen years after The Third Wave and nine years before now.

David Weinberger and I also wrote about it a year later, in this chapter of Cluetrain. We called it “The Axe in Our Heads”:

  Ironically, many of us spend our days wielding axes ourselves. In our private lives we defend ourselves from the marketing messages out to get us, our defenses made stronger for having spent the day at work trying to drive axes into our customers’ heads. We do both because the axe is already there, the metaphorical embodiment of that wedge Toffler wrote about — the one that divides our jobs from our lives. On the supply side is the producer; on the demand side is the consumer. In the caste system of industry, it is bad form for the two to exchange more than pleasantries.
  Thus the system is quietly maintained, and our silence goes unnoticed beneath the noise of marketing-as-usual. No exchange between seller and buyer, no banter, no conversation. And hold the handshakes.
  When you have the combined weight of two hundred years of history and a trillion-dollar tide of marketing pressing down on the axe in your head, you can bet it’s wedged in there pretty good. What’s remarkable is that now there’s a force potent enough to actually start loosening it.
  Here’s the voice of a spokesperson from the world of TV itself, Howard Beale, the anchorman in Paddy Chayefsky’s Network who announced that he would commit suicide because “I just ran out of bullshit.” Of course, he had to go insane before he could at last utter this truth and pull the axe from his own head.

We’re all still Howard Beales today. We haven’t run out of bullshit, and there’s no less cause for anger than there was when Network, The Third Wave and Cluetrain each came out. The Information Age is here, but its future is not just (as William Gibson put it) unevenly distributed. Large parts of it aren’t here at all. The largest of those is actual empowerment of customers — in ways that are native to customers, rather than privileges granted by vendors. The difference is huge.

That’s why yelling doesn’t work. What we need instead is to make tools that work for us, and not just for them. We need to invent tools that give each of us independence from vendor control, and better ways of telling vendors what we want, when we want it, and how we want to relate — on our terms and not just on theirs. As Neo said to the Architect, “The problem is choice”. That problem will be with us as long as that axe is in our heads.

Thank Facebook for starting to pull that axe out. As Dan Blank shows, and Jason Calacanis says,

All of this comes up because Facebook has done three things that are at once extremely innovative, extremely rude, extremely helpful, and extremely disconcerting:

1. They are collecting and republishing user data on a level not before seen by users.

2. They are allowing advertisers to use this data to reach these users.

3. They are not giving this information–information that has put their value at $15 billion–back to their users.

Depending on who you are, or what your goals are at a particular time, you might find extreme pleasure or discomfort in each of these.

What matters is the first point. (Forgive me, but the others are red herrings, even if you’re an entrepreneur hoping to make money on the advertising gravy train.) Facebook crossed a line here. They lured us into a vast stockyard, and then began to monetize us in ways that violated our quaint notion that we are not in fact cattle.

Treating users of free services like cattle is as old as TV, radio and billboards. It may be as old as people painting in caves with charcoal and spit. The difference now isn’t in Facebook’s manners, which are no different than those of NBC or the New York Times. The difference isn’t even that this time it’s personal. That’s been a holy grail for advertising since the beginning as well. Facebook is reaching for a golden ring here, and I’m inclined to forgive them for doing that.

The main difference is that we’re not powerless any more. That was the core message of this line from Cluetrain:

If we want our reach to truly exceed Facebook’s grasp, we can’t just tell Facebook to stop grasping. We have do deals on our terms and not just theirs. We have to have real relationships and not just systems on the sell side built only to “manage” us, mostly by minimizing human contact.

Perhaps most of all, we need to come up with systems that help demand find supply, rather than just ones that help supply find (or “create”) demand. That means we need alternatives to the outmoded and inefficient system of guesswork we call advertising.

That doesn’t mean we make advertising go away. But it does mean that we find new paths between demand and supply. and it does mean that find ways to get unwanted advertising out of our face.

[Later…] Alan Patrick sees a tipping point.

So I’ve been reading Dave Winer, Ethan Zuckerman, Jeff Jarvis, David Wienberger and Wendy Seltzer, all of whom have problems with what Facebook is doing with its members’ data.

Dave in particular is looking for action:

There are thorny issues here, but we want these companies to give up control of our information, and we don’t want them to be overly scared of public opinion as they do it.

And this is hardly the most important giving up of control. Most important, I want them to give me control of my data.

 MoveOn.org, in a move far afield from their original mission, has created a petition for us to sign. It reads, “Facebook must respect my privacy. They should not tell my friends what I buy on other sites–or let companies use my name to endorse their products–without my explicit permission.”

At this point the voice of Jim Morrison rises from my subconscious, announcing the opening stanza from Soft Parade in the homiletic voice of a preacher from a pulpit:

When I was back there in seminary school
There was a person there
Who put forth the proposition
That you can petition the Lord with prayer
Petition the lord with prayer
Petition the lord with prayer
You cannot petition the lord with prayer!

Morrison screams that last line, in manner later perfected by the also-late Sam Kinison. My own version: Stop petitioning Facebook and Google to solve our problems for us. They’re not creating those problems alone. We’re been allowing them to create those problems in the first place, and we’ve been doing that for too long. Time to come up with some new rules of engagement — ones that work for us as well as them.

Dave, Scott Rafer and others rightly call on MoveOn.org to get back to its original mission and stay out of tech territory. But MoveOn has something right in its last four words: without my explicit permission. Question: How do we exercise that permission? By what protocols? What tools? What policies? What agreements?

Dave provides the answer:

So before we overly politicize the leading edge of technology, let’s get together on what actually does and doesn’t serve the user’s interest.

I want Netflix and Yahoo to give me an XML version of my movie ratings, for me to decide what to do with. I’ve been asking for this for a couple of years, I still don’t have it. This is information I created. I want to keep a copy. I want to make sure that Netflix knows about all my Yahoo ratings and vice versa. I’d like to give a copy to Facebook (assuming they agree to not disclose it) and maybe to Amazon, so they can recommend products I might want to purchase (again keeping it to themselves). I want to begin a negotiation with various vendors, where I give them something of value, and they give me back something of value. Permalink to this paragraph

The leaders of Silicon Valley begrudgingly gave up their view of us as couch potatoes, now they think of us as generators of content they can put ads on (and pay us nothing). We still need to work on that respect thing.

The boldface in the first paragraph is mine. Because that’s what we need to do. It’s not enough to petition the likes of Facebook to give us our data. We need to create the rules by which our data can be used. When we sign on as “members” of some company’s “social network”, they need to sign our terms as well. From the start.

For too long we’ve lived with “relationship management” that’s asymmetrical and one-way. Creating the grounds for symmetrical relationships cannot be the job of Facebook, Google, Microsoft or any big company. They can’t do it, and they won’t. We can’t petition those lords with prayer, blogs, or anything else. (Well, we can, but it won’t be enough.)

We need to create our own new rules — ones that protect our privacy while making us better members of the social and business systems we create together. I say “better” because that’s what we’re bound to be when we cease being eyeballs and start acting like whole human beings.

This very topic, by the way, is at the heart of VRM.

By the way, a great place to start doing the work Dave calls for here is the Internet Identity Workshop in Mountain View, the week after next. These workshops are among the most constructive (un)conferences I’ve ever been to, and I’m not just saying that because I’m one of the organizers. Good work always happens there, in three days of serious barn-raising.

Look forward to seeing some of ya’ll there.

In response to my piece in Linux Journal yesterday, Antonio Rodriguez, proprietor of Tabblo, has come up with an excellent workaround for photographers dealing with the asymmetry of today’s Net and the problem of uploading over and over again to multiple photo sites:

I’d like to see a white-label services that could be wrapped by webapp builders for core pieces of functionality. To continue the upload example: why doesn’t Amazon, or some enterprising entrepreneur looking to build on the cloud computing infrastructure at Amazon, build out a full suite of well-supported file uploaders, along with an associated S3-backed storage infrastructure for everything from photos to videos. By focusing on just the upload experience, this effort could just nail it for all the rest of us— building plug-ins for our favorite apps, clients for our favorite platforms, and even specialized hardware for events and community activities. In Doc’s VRM world, such a company might even be able to charge the enduser a nominal fee for pipe and storage, so long as its service integrated easily with enough of the interesting webapps.

You listening lazy web?

Better yet, are you listening, carriers?

All the last-mile companies — Comcast, Cox, AT&T, RCN, Time-Warner, Verizon and the rest — are continuing to make all their money on “triple play” and other monopoly rents. They can do better than that. The Net may be a World of Ends in an ideal sense, but in reality there are physical-world issues that put proximal services at a real advantage. Same goes for proximal real estate.

The carriers have already let Akamai school them once. I suppose you could throw in Amazon’s Web Services (notably EC2 and S3, which provide big back-end compute and storage, cheap) as well. Companies such as Digisense leverage Amazon’s S3 back end to provide workarounds of carrier last-mile slow-upstream asymmetries. (Disclosure: I’ve consulted Digisense.) Rather than being a problem to be worked around, the carriers could become the solution. Or at least support solutions provided by more agile companies that could serve as partners or customers.

There are enormous benefits to carrier incumbency that go beyond extending decades-old cable TV and century-old telephone company business models. There are countless potential service businesses that can be either created or supported by the carriers, and their suppliers as well. (That’s you, Cisco.) Antonio just described one of them.

Here at my apartment near Boston I’m lucky to have a choice of three different carriers: Comcast, RCN and Verizon. I use Verizon because it provides 20Mb downstream and 5Mb upstream — much higher speeds, especially on upstream, than either of its rivals — and comes pretty damn close to delivering exactly that:

The HDTV we get is also pretty good, though the user interface and choice of set-top boxes fall far short of what we’ve experienced for years in Santa Barbara with Dish Network. (Still, they’re new at this. I’m willing to cut them some slack.)

Anyway, we pay a little over $100/month for TV, phone and Net as a “triple play”. Of that, the Net is about half the total. But what if we want more, such as an IP address or two, so se can set up our own Web servers? Well, we need to get Verizon FiOS for business for that. There the lowest price is about $100, for a two-year commitment for “Up to 15 Mbps/2 Mbps”. That’s twice the cost for much lower speeds, both ways, than I get now. The closest business offer to what I have now is “Up to 30 Mbps/5 Mbps”, and that’s $389.99/month for one year and $404.99/month for two years.

This kind of pricing prevents far more business than it supports. It’s the old telco mentality at work: the one that says, “Businesses can afford to pay more, so we’ll charge more”.

Verizon and its competitors need to start seeing their primary advantages in three places: 1) existing customer relationships; 2) proximity to customers of buildable and rentable service-platform real estate; and 3) providing the connectivity that allows business to grow around #1 and #2.

So consider this a friendly and construcive shout-out to CZ and others at Verizon, from the other side of the carrier/customer fence. You guys are making some good moves, technically. Now let’s see you make a few that support the Web’s and the Net’s business and social ecosystems, and not just those of Hollywood and Ma Bell’s ghost.

In no particular order…

Not quite an error.

The pitch is dead.

Jumping on the three-wheeled bandwagon.

“That Company” for how long?

On negative capability.

If you wouldn’t buy your product/service, there’s really no point trying to get others to do so”.

The piece is titled,

NUTRITION IS A FORCE MULTIPLIER
A MONTHLY GASTRONOMIC CHRONICLE OF WAR
by Roland Thompson, stationed in Iraq

And it begins,

In my midst are soldiers who have been shot, blown up, burned, and rehabilitated. Whether they chose to return to Iraq or not, I don’t know. In any case they’re here at Camp Anaconda, and unless I see them in the shower I can’t tell them apart from the nonwounded. Likewise, it’s not until I walk a mile with a guy named Eric that I notice the merry-go-round action of his hip.

Eric and I enter the dining tent together. Traffic is one-way through the crowded tent, where food is arranged buffet-style. Our mainline choices are horse cock or triangle fish. Side dish options include raw onion, mayonnaise, grits, and fresh cantaloupe.

I get my cantaloupe and sit next to Eric, such that our arms touch from shoulder to elbow. Eric’s arm feels shrunken and insular. Later Eric tells me that his arm was shot off and reattached, but for the time being we don’t talk. We just eat, wounded or not, like everybody else.

Several paragraphs later, it says,

To read the rest of this piece, please purchase this issue
of the Believer online or at your local bookseller.

Hmmm…

Anyway, I found the Believer though this post by JP, who says,

You see, I’m with Doc. I believe in VRM. I believe that in the 21st century, product-driven advertising is fundamentally flawed. Personal recommendations, whether direct or via collaborative filtering, count for a lot more. Recommendations from people I know and trust, recommendations that scale now that I have the tools and the technology to discover the recommendations and act on them.

So I enjoy reading magazines that have no ads in them. Magazines printed on good paper, with loving care taken on format and layout. Magazines that cover a range of subjects, enticing me into finding out more about things I know little about. Magazines that have copyright-free content. Magazines like the Believer.

So the Believer may have copyright-free content (is there such a thing? I dunno…), but it’s still mostly locked behind a subscription wall.

Which is my excuse to say that I’d like to see VRM make it possible for the Believer to expose their content and get paid for it anyway, because it wants to be in relationship with its readers — one that involves readers paying for the goods as part of that relationship.

Because I also believe that writers (and publishers, broadcasters, and artists of every sort) who give their goods away yet need to be paid for their work, are more likely to be paid by those with whom they enjoy a degree of relationship.

In short, I believe that relationship pays — or can, once we put together the protocols, tools and other stuff to make it happen.

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