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Curing High School

December 13, 2010 in Berkman, Blogging, Business, Future, history, infrastructure, Links, Live Web, problems, Research, Technology, VRM | 10 comments

So I’m in the midst of my first encounter with PeerIndex, which I found through this Petervan’s Blog post. I’d been pointed to PeerIndex before, and to other services like it, and have always found them aversive. But this time the lead came from a friend and business associate, so I thought I’d check it out.

While it’s kinda creepy using Facebook Connect and other means of dumping one’s online life into a service one does not yet understand, much less trust, I don’t have any secrets at any of those data sources, so I gave it a try. Here’s the result, in graphical form:

peerindex

Here’s how Peter explains this:

Peerindex helps you understand and benefit from your social and reputation capital online. How much is your online reputation worth ? PeerIndex is a web technology company that is algorithmically mapping out the social web.

The way we see it, the social web now allows everyone endless possibilities in discovering new information on people, places, and subjects. We believe that the traditional established authorities and experts – journalists, academics, are now joined by a range of interested and capable amateurs and professionals. As this locus of authority shifts, many new authorities emerge. PeerIndex wants to become the standard that identifies, ranks, and scores these authorities — and help them benefit from the social capital they have built up

Btw, my Peerindex is 60. That’s based on my digital footprint on Twitter, Facebook, LinkedIn, and my blogging activities. It is obvious to see that this number “60” may one day translate into some virtual social currency.

Friends, this is high school with a business model.

While our value in the marketplace depends on our reputations, we are not reducible to “captial,” “assets,” “currency” or any other measure.

What I write on this blog, what I tweet, what I share through LinkedIn and Facebook, is not for an “audience.” I have readers here. That’s who I write for. While my services, whatever they are, have value in the marketplace, and I get paid for some of them, that’s not why I write what I write—here, in Twitter or anywhere other than in private correspondence that concerns actual business.

Somewhere back in the early days, this blog plateau’d at about 20,000 regular readers. It’s still there, I’m sure, though I haven’t checked in years. On Twitter I’ve got about 12,000 followers, who I suspect are a subset of my blog readers. That’s fine with me. I’m not looking for more. And I don’t care if I have less. I write stuff that I think is worth sharing, mostly on the old Quaker maxim of not speaking unless you can improve on the silence. Shouting louder isn’t my style. Joking around is. Saying too much or too little is. Being myself is.

Somewhere in the oeuvre of Kurt Vonnegut is a line I can’t find on the Web, but remember going like this: “High school is the core American experience.”  [Later… Mike Warot found the original. Very cool.] I think this is true. And I think that’s what this kind of stuff, as otherwise well-intended as it may be, appeals to.

In his first World Entertainment War album, Rob Breszny pauses in the midst of a wacky narrative to offer a multiple choice question for which the correct answer is this: “Burn down the dream house where your childhood keeps repeating itself.”

Wishing for popularity and approval is a mark of adolescence, a term invented to describe a normative high school condition—specifically, one in which childhood is prolonged. The best cure I know is chug down some Whitman. Here’s a sample:

In all people I see myself, none more
and not one a barleycorn less,
And the good or bad I say of myself I say of them.

I know I am solid and sound.
To me the converging objects of the universe
perpetually flow.
All are written to me,
and I must get what the writing means.
I know I am deathless.
I know this orbit of mine cannot be swept
by a carpenter’s compass,

I know that I am august,
I do not trouble my spirit to vindicate itself
or be understood.
I see that the elementary laws never apologize.

I exist as I am, that is enough.
If no other in the world be aware I sit content.
And if each and all be aware I sit content.

One world is aware, and by far the largest to me,
and that is myself.
And whether I come to my own today
or in ten thousand or ten million years,
I cheerfully take it now,
or with equal cheerfulness I can wait.

My foothold is tenoned and mortised in granite.
I laugh at what you call dissolution,
And I know the amplitude of time.

I am a poet of the body,
And I am a poet of the soul.

I am the poet of the woman the same as the man.
And I say it is as great to be a woman as to be a man,
And I say there is nothing greater than the mother of men.

I chant a new chant of dilation and pride.
We have had ducking and deprecating about enough.
I show that size is only development.

Have you outstript the rest? Are you the President?
It is a trifle.
They will more than arrive there every one,
and still pass on.

I am he that walks with the tender and growing night.
I call to the earth and sea half-held by the night.

Smile O voluptuous coolbreathed earth!
Earth of the slumbering and liquid trees!
Earth of the departed sunset!
Earth of the mountains misty topt!
Earth of the vitreous pour of the full moon
just tinged with blue!
Smile, for you lover comes!

Prodigal! you have given me love!
Therefor I give you love!
O unspeakable passionate love!
Thurster holding me tight that I hold tight!

We hurt each other
as the bridegroom and the bride hurt each other

You sea! I resign myself to you also…
I guess what you mean.
I behold from the beach your crooked inviting fingers.
I believe you refuse to go back without feeling of me.
We must have a turn together.
I undress. Hurry me out of sight of the land.
Cushion me soft. Rock me in billowy drowse.
Dash me with amorous wet. I can repay you!
Howler and scooper of storms!
Capricious and dainty sea!
I am integral with you.
I too am of one phase and all phases.

I am the poet of common sense
and of the demonstrable and of immortality.
And am not the poet of goodness only.

What blurt is it about virtue and about vice?
Evil propels me, and reform of evil propels me.
I stand indifferent.
My gait is no faultfinder’s or rejecter’s gait.
I moisten the roots of all that has grown.

Did you fear some scrofula out
of the unflagging pregnancy?
Did you guess the celestial laws are yet
to be worked over and rectified?

I step up to say what we do is right,
and what we affirm is right,
and some is only the ore of right.
Soft doctrine a steady help as stable doctrine.
Thoughts and deeds of the present
our rouse and early start.

This minute that comes to me over the past decillions.
There is no better than it and now.

Walt Whitman, an American, one of the roughs,
a cosmos.
Disorderly fleshy and sensual…
eating, drinking and breeding.
No sentimentalist… no stander above men and women
or apart from them… no more modest than immodest.

Whoever degrades another degrades me.
And whatever is done or said returns at last to me.
And whatever I do or say I also return.

Through me the afflatus surging and surging.
Through me current and index.

I speak the password primeval.
I give the sign of democracy.
By God, I will accept nothing which all cannot have
their counterpart on the same terms.

Through me many long dumb voices,
Voices of the generations of slaves,
of prostitutes and deformed persons,
f the diseased and despairing,
of thieves and dwarves.
Of cycles of preparation and accretion,
And of the threads that connect the stars
— and of wombs, and of the fatherstuff,
And of the rights of them the others are down upon,
Of the trivial and flat and foolish and despised,
Of the fog in the air and beetles rolling balls of dung.

Through me forbidden voices,
Voices of sexes and lusts. Voices veiled,
and I remove the veil.
Voices indecent are by me clarified and transfigured.
I do not press my finger across my mouth.
I keep as delicate around the bowels
as around the head and heart.

Copulation is no more rank to me than death is.

I believe in the flesh and the appetites.
Seeing hearing and feeling are miracles,
and each part and tag of me is a miracle.

Divine I am inside and out;
and make holy whatever I touch or am touched from;
The scent of these armpits is aroma finer than prayer
This head is more than churches or bibles or creeds.

If I worship any particular thing it shall be some
of the spread of my body.
Shared ledges and rests, firm muscular coulter,
it shall be you.
Breast that presses against other breasts, it shall be you.
Mixed tussled hay of head and beard and brawn
it shall be you.
Sun so generous it shall be you,
Vapors lighting and shading my face it shall be you.
Winds whose soft-tickling genitals
rub against me it shall be you.
Hands I have taken, face I have kissed,
mortal I have ever touched, it shall be you.

I dote upon myself. There is that lot of me,
and all so luscious,
Each moment and whatever happens thrills me with joy.

I cannot tell how my ankles bend…
nor whence the cause of my faintest wish.

A morning glory at my window
satisfies me more than the metaphysics of books.

To behold the daybreak!
The little light fades the immense and diaphanous shadows.
The air tastes good to my palate.

Hefts of the moving world turn on innocent bearings,
silently rising, freshly exuding,
Scooting obliquely high and low.

Something I cannot see puts upward libidinous prongs.
Seas of bright juice suffuse heaven.

The earth by the sky staid
with the daily close of their junction.
The heaved challenge from the east that moment
over my head,
The mocking taunt, See then whether you shall be master!

Dazzling and tremendous how quick
the sunrise would kill me
If I could not now and always send sunrise out of my self.

We also ascend dazzling and tremendous as the sun.
We found our own way my soul in
the calm and cool of the daybreak.

My voice goes after what my eyes cannot reach.
With the twirl of my tongue I encompass worlds
and volumes of worlds.

Speech is the twin of my vision…
it is unequal to measure itself.
It provokes me forever.
It says sarcastically, Walt, you understand enough —
why don’t you let it out then?

Come now, I will not be tantalized.
You make too much of articulation.

Encompass worlds but never try to encompass me.
I crowd your noisiest talk by looking toward you.

Writing and talk do not prove me.
I carry the plenum of proof and everything else
in my face.
With the hush of my lips I confound the topmost skeptic.

All truths wait in all things.
They neither hasten their own delivery nor resist it.
They do not need the obstetric forceps of the surgeon,
The insignificant is as big to me as any.
What is less or more than a touch?

Logic and sermons never convince.
The damp of the night drives deeper into my soul.

Only what proves itself to every man and woman is so.
Only what nobody denies is so.

I think I could turn and live awhile with the animals.
They are so placid and self-contained.
I stand and look at them sometimes half the day long.
They do not sweat and whine about their condition.
They do not lie awake in the dark and weep for their sins.
Not one is dissatisfied.
Not one is demented with the mania of owning things.
Not one kneels to another nor to his kind that lived thousands of years ago.
Not one is respectable or industrious over all the earth.

I am a free companion. I bivouac by invading watchfires.

I turn the bridegroom out of bed and stay with the bride myself,
And tighten her all night to my thighs and lips.

My voice is the wife’s voice,
the screech by the rail of the stairs,
They fetch my man’s body up dripping and drowned.
I understand the large hearts of heroes.
The courage of present and all times.
I am the man. I suffered. I was there.

I am the hounded slave. I wince at the bite of the dogs.

Agonies are one of my changes of garments.

I do not ask the wounded person how he feels.
I myself am the wounded person.
My hurt turns livid upon me as I lean on a cane
and observe.

Distant and dead resuscitate.
They show as the dial or move as the hands of me…
and I am the clock myself.

The friendly and flowing savage: who is he?
Is he waiting for civilization or past it and mastering it?
Behavior lawless as snowflakes. Words simple as grass.
Uncombed head and laughter and naivete.
They descend in new forms from the tips of his fingers.
They are wafted with the odor of his body and breath.
They fly out of the glance of his eyes.

You there, impotent, loose in the knees,
open your scarfed chops till I blow grit within you.
Spread your palms and lift the flaps of your pockets.
I am not to be denied. I compel.
I have stores plenty and to spare.
And anything I have I bestow.

I do not ask who you are. That is not important to me.
You can do nothing and be nothing
but what I will infold you.

I seize the descending ;man.
I raise him with resistless will.

O despairer, here is my neck.
By God, you shall not go down.
Hang your whole weight upon me.

I dilate you with tremendous breath. I buoy you up.
Every room of your youse do I fill with an armed force.

The weakest and shallowest is deathless with me.
What I do and say the same waits for them.
Every thought that flounders in me
the same flounders in them.

I know perfectly well my own egotism.
And I know my omnivorous words,
and cannot say any less.
And would fetch you whoever you are flush with myself.

I do not know what is untried and afterward,
But I know it is sure and alive and sufficient.

It is time to explain myself. Let us stand up.

I am an acme of things accomplished,
and I an encloser of things to be.
Rise after rise bow the phantoms behind me.
Afar down I see the huge first Nothing,
the vapor from the nostrils of death.
I know I was even there.
I waited unseen and always.
And slept while God carried me
through the lethargic mist.
And took my time.

Long I was hugged close. Long and long.
Infinite have been the preparations for me.
Faithful and friendly the arms that have helped me.

Cycles ferried my cradle, rowing and rowing
like cheerful boatmen;
For room to me stars kept aside in their own rings.
They sent influences to look after what was to hold me.

Before I was born out of my mother
generations guided me.
My embryo has never been torpid.
Nothing could overlay it.
For it the nebula cohered to an orb.
The long slow strata piled to rest it on.
Vast vegetables gave it substance.
Monstrous animals transported it in their mouths
and deposited it with care.

All forces have been steadily employed
to complete and delight me.
Now I stand on this spot with my soul.

I know that I have the best of time and space.
And that I was never measured, and never will be measured.

I tramp a perpetual journey.
My signs are a rainproof coat, good shoes
and a staff cut from the wood.

Each man and woman of you I lead upon a knoll.
My left hand hooks you about the waist,
My right hand points to landscapes and continents,
and a plain public road.

Not I, nor any one else can travel that road for you.
You must travel it for yourself.

It is not far. It is within reach.
Perhaps you have been on it since you were born
and did not know.
Perhaps it is everywhere on water and on land.

Shoulder your duds, and I will mine,
and let us hasten forth.

If you tire, give me both burdens and rest the chuff of your hand on my hip.
And in due time you shall repay the same service to me.

Long enough have you dreamed contemptible dreams.
Now I wash the gum from your eyes.
You must habit yourself to the dazzle of the light and of every moment of your life.

Long have you timidly waited,
holding a plank by the shore.
Now I will you to be a bold swimmer,
To jump off in the midst of the sea, and rise again,
and nod to me and shout,
and laughingly dash your hair.

I am the teacher of athletes.
He that by me spreads a wider breast than my own
proves the width of my own.
He most honors my style
who learns under it to destroy the teacher.

Do I contradict myself?
Very well then. I contradict myself.
I am large. I contain multitudes.

I concentrate toward them that are nigh.
I wait on the door-slab.

Who has done his day’s work
and will soonest be through with his supper?
Who wishes to walk with me.

The spotted hawk swoops by and accuses me.
He complains of my gab and my loitering.

I too am not a bit tamed. I too am untranslatable.
I sound my barbaric yawp over the roofs of the world.

The last scud of day holds back for me.
It flings my likeness after the rest and true as any
on the shadowed wilds,
It coaxes me to the vapor and the desk.

I depart as air.
I shake my white locks at the runaway sun.
I effuse my flesh in eddies and drift in lacy jags.

I bequeath myself to the dirt and grow
from the grass I love.
If you want me again look for me under your boot soles.

You will hardly know who I am or what I mean.
But I shall be good health to you nevertheless.
And filtre and fiber your blood.

Failing to fetch me at first keep encouraged.
Missing me one place search another
I stop some where waiting for you.

Today, this is that place.

[Later…] @PeerIndex responded with a generous and non-defensive tweet. As I tweeted back, hats off.

FreedomLeaks

December 9, 2010 in Business, Future, infrastructure, Journalism, Places, Politics, problems, Technology, VRM | 7 comments

We’ll start with four essential posts on the Wikileaks matter.

First is Iran and the Bomb, by Hedrik Hertzberg, It’s this week’s Talk of the Town in The New Yorker. Here’s the pull quote:

Perhaps the two biggest secrets that the WikiLeaks leaks leaked are that the private face of American foreign policy looks pretty much like its public face and that the officials who carry it out do a pretty good job.

Second is Clay Shirky‘s Wikileaks and the Long Haul. His bottom lines (or, paragraphs):

The key, though, is that democracies have a process for creating such restrictions, and as a citizen it sickens me to see the US trying to take shortcuts. The leaders of Myanmar and Belarus, or Thailand and Russia, can now rightly say to us “You went after Wikileaks’ domain name, their hosting provider, and even denied your citizens the ability to register protest through donations, all without a warrant and all targeting overseas entities, simply because you decided you don’t like the site. If that’s the way governments get to behave, we can live with that.”

Over the long haul, we will need new checks and balances for newly increased transparency — Wikileaks shouldn’t be able to operate as a law unto itself anymore than the US should be able to. In the short haul, though, Wikileaks is our Amsterdam. Whatever restrictions we eventually end up enacting, we need to keep Wikileaks alive today, while we work through the process democracies always go through to react to change. If it’s OK for a democracy to just decide to run someone off the internet for doing something they wouldn’t prosecute a newspaper for doing, the idea of an internet that further democratizes the public sphere will have taken a mortal blow.

Third is Hackers Give Web Companies a Test of Free Speech, in the New York Times. It’s about secretive hackers attacking MasterCard, Visa and Paypal, and doing so in what we might call a “social” way. Sez the Times, “To organize their efforts, the hackers have turned to sites like Facebook and Twitter. That has drawn these Web giants into the fray and created a precarious situation for them.” The pull-grafs:

Some internet experts say the situation highlights the complexities of free speech issues on the Internet, as grassroots Web companies evolve and take central control over what their users can make public. Clay Shirky, who studies the Internet and teaches at New York University, said that although the Web is the new public sphere, it is actually “a corporate sphere that tolerates public speech.”

Marcia Hofmann, a lawyer at the Electronic Frontier Foundation, said, “Any Internet user who cares about free speech or has a controversial or unpopular message should be concerned about the fact that intermediaries might not let them express it.”

She added, “Your free speech rights are only as strong as the weakest intermediary.”

Fourth is Dave Winer‘s Are we starting a full-out war on the Internet? His post pivots from Wikileaks to a larger issue: the Net itself:

I watch my friends root for the attackers and think this is the way wars always begin. The “fighting the good fight” spirit. Let’s go over there and show them who we are. Let’s make a symbolic statement. By the time the war is underway, we won’t remember any of that. We will wonder how we could have been so naive to think that war was something wonderful or glorious. People don’t necessarily think of wars being fought on the net and over the net, but new technology comes to war all the time, and one side often doesn’t understand…

…the Internet no longer has to fight for a right to exist. The people want it. But what kind of Internet we get, and what kind of government we get, those two things are now very deeply intertwined, and absolutely not decided. And how our financial system functions, that’s going to be what the war is fought over, if we can’t avoid having a war — which we should, if we can.

Let’s go back to Clay’s characterization of the Web as a corporate sphere that tolerates public speech. This is true, and in a way that goes far deeper than the current popularity of Twitter, Facebook and other “social” sites and services. It goes to the Domain Name System, or DNS.

You don’t own domain names. You rent them. You do this through a domain name registrar. Most of these are commercial entities. These sit in a domain name space that is hierarchical in nature and structure. This is why it is possible for governments and well-placed companies to cut off Wikileaks from every Web location other than wikileaks.ch, in Switzerland, which is characteristically neutral on the matter. It’s also why, even with COICA (the Combating Online Infringement and Counterfeits Act) still in its larval stage, Homeland Security can kill off websites for alleged copyright infringement without showing probable cause, issuing a warrant, or anything else so traditionally procedural. (Here’s one example.)

The Web and the DNS are also organized on the client-server model. In addition to putting site owners at the mercy of greater powers in the hierarchy, this puts users — you and me — at the mercy of the site owners. Think about this every time you don’t read the terms of an “agreement” you submit to. The pro formalities of these conform to the submissive/dominant relationship between clients and servers. These agreements, known as contracts of adhesion, nail down the submissive party while leaving the dominant party free to change the terms. Such is the law of the Web’s jungle: a system in which site owners control the rules of engagement, and provide the means as well. This is why you have to carry around a janitor’s keyring of separate logins and passwords for every different site and service with which you do business. The shortcuts provided by Twitter and Facebook are handy, but can also mask high degrees of exposure — especially in the Facebook case. (See I Shared What? for schooling on this.) Think about why “privacy policy” appears in nearly a billion sites, with the quotes, and in three and a quarter billion sites without the quotes.

So, why don’t you have your own policy? Why can’t you be as trustworthy on the Web as you are walking into any store off the street? The reason is that you have no status on the Web itself beyond the minima implied by the term “user.” Whatever status you experience is what’s granted by site owners. You are the client. Your position is submissive. The dominant party is in charge, and there are a billion-plus of those.

I don’t propose fixing either DNS or the client-server model. I do propose, however, that we work on new models that don’t put us in submissive roles. For one example, see “How is your idea new?” under our Knight News Challenge entry. (And, if you like it, give it a good rating.) There are others as well. David Siegel wrote a whole book on one. Kynetx has another. (They’re complementary.) I could go on (and I invite others to do exactly that).

The Wikileaks mess was made on the Web, and less so the Net. These things are different. More to the point, we are netizens and not just webizens. The war for the Net is a separate one, and it is being faught in many places. From some of those places, little if any news escapes. (For example, did you know that your city in Texas you can’t do what Chatanooga’s doing in Tennessee?) Others places, such as Washington, are beyond fubar.

I’ll have more to say about that war in another post soon. Meanwhile, it might help to read an oldie but (very) goodie: Retired Texas Judge Steve Russell’s reaction to the late Communications Decency Act.

The Data Bubble II

October 31, 2010 in Business, Cluetrain, Events, Future, Journalism, Live Web, problems, VRM | 16 comments

In The Data Bubble, I told readers to mark the day: 31 July 2010. That’s when The Wall Street Journal published The Web’s Gold Mine: Your Secrets, subtitled A Journal investigation finds that one of the fastest-growing businesses on the Internet is the business of spying on consumers. First in a series. That same series is now nine stories long, not counting the introduction and a long list of related pieces. Here’s the current list:

  1. The Web’s Gold Mine: What They Know About You
  2. Microsoft Quashed Bid to Boost Web Privacy
  3. On the Web’s Cutting Edge: Anonymity in Name Only
  4. Stalking by Cell Phone
  5. Google Agonizes Over Privacy
  6. Kids Face Intensive Tracking on Web
  7. ‘Scrapers’ Dig Deep for Data on the Web
  8. Facebook in Privacy Breach
  9. A Web Pioneer Profiles Users By Name

Related pieces—

Two things I especially like about all this. First, Julia Angwin and her team are doing a terrific job of old-fashioned investigative journalism here. Kudos for that. Second, the whole series stands on the side of readers. The second person voice (you, your) is directed to individual persons—the same persons who do not sit at the tables of decision-makers in this crazy new hyper-personalized advertising business.

To measure the delta of change in that business, start with John Battelle‘s Conversational Marketing series (post 1, post 2, post 3) from early 2007, and then his post Identity and the Independent Web, from last week. In the former he writes about how the need for companies to converse directly with customers and prospects is both inevitable and transformative. He even kindly links to The Cluetrain Manifesto (behind the phrase “brands are conversations”).

In his latest he observes some changes in the Web itself:

Here’s one major architectural pattern I’ve noticed: the emergence of two distinct territories across the web landscape. One I’ll call the “Dependent Web,” the other is its converse: The “Independent Web.”

The Dependent Web is dominated by companies that deliver services, content and advertising based on who that service believes you to be: What you see on these sites “depends” on their proprietary model of your identity, including what you’ve done in the past, what you’re doing right now, what “cohorts” you might fall into based on third- or first-party data and algorithms, and any number of other robust signals.

The Independent Web, for the most part, does not shift its content or services based on who you are. However, in the past few years, a large group of these sites have begun to use Dependent Web algorithms and services to deliver advertising based on who you are.

A Shift In How The Web Works?

And therein lies the itch I’m looking to scratch: With Facebook’s push to export its version of the social graph across the Independent Web; Google’s efforts to personalize display via AdSense and Doubleclick; AOL, Yahoo and Demand building search-driven content farms, and the rise of data-driven ad exchanges and “Demand Side Platforms” to manage revenue for it all, it’s clear that we’re in the early phases of a major shift in the texture and experience of the web.

He goes on to talk about how “these services match their model of your identity to an extraordinary machinery of marketing dollars“, and how

When we’re “on” Facebook, Google, or Twitter, we’re plugged into an infrastructure (in the case of the latter two, it may be a distributed infrastructure) that locks onto us, serving us content and commerce in an automated but increasingly sophisticated fashion. Sure, we navigate around, in control of our experience, but the fact is, the choices provided to us as we navigate are increasingly driven by algorithms modeled on the service’s understanding of our identity.

And here is where we get to the deepest, most critical problem: Their understanding of our identity is not the same as our understanding of our identity. What they have are a bunch of derived assumptions that may or may not be correct; and even if they are, they are not ours. This is a difference in kind, not degree. It doesn’t matter how personalized anybody makes advertising targeted at us. Who we are is something we possess and control—or would at least like to think we do—no matter how well some of us (such as advertisers) rationalize the “socially derived” natures of our identities in the world.

It is standard for people in the ad business to equate assent with approval, and John’s take on this is a good example of that. Sez he,

We know this, and we’re cool with the deal.

In fact we don’t know, we’re not cool with it, and it isn’t a deal.

If we knew, the Wall Street Journal wouldn’t have a reason to clue us in at such length.

We’re cool with it only to the degree that we are uncomplaining about it—so far.

And it isn’t a “deal” because nothing was ever negotiated.

On that last point, our “deals” with vendors on the Web are agreements in name only. Specifically, they are a breed of assent called contracts of adhesion. Also called standard form or boilerplate contracts, they are what you get when a dominant party sets all the terms, there is no room for negotiation, and the submissive party has a choice only to accept the terms or walk away. The term “adhesion” refers to the nailed-down nature of the submissive party’s position, while the dominant party is free to change the terms any time it wishes. Next time you “agree” to terms you haven’t read, go read them and see where it says the other party reserves the right to change the terms.

There is a good reason why we have had these kinds of agreements since the dawn of e-commerce. It’s because that’s the way the Web was built. Only one party—the one with the servers and the services—was in a position to say what was what. It’s still that way. The best slide I’ve seen in the last several years is one of Phil Windley‘s. It says,

HISTORY OF E-COMMERCE

1995: Invention of the Cookie.

The End.

About all we’ve done since 1995 on the sell side is improve the cookie-based system of “relating” to users. This is a one-way take-it-or-leave-it system that has become lame and pernicious in the extreme. We can and should do better than that.

Phil’s own company, Kynetx, has come up with a whole new schema. Besides clients and servers (which don’t go away), you’ve got end points, events, rules and rules engines to execute the rules. David Siegel’s excellent book, The Power of Pull, describes how the Semantic Web also offers a rich and far more flexible and useful alternative to the Web’s old skool model. His post yesterday is a perfect example of liberated thinking and planning that transcends the old cookie-limited world. The man is on fire. Dig his first paragraph:

Monday I talked about the social networking bubble. Marketers are getting sucked into the social-networking vortex and can’t find their way out. The problem is that most companies are trying small tactical improvements, hoping to improve sales a bit and trying tactical savings programs, hoping to improve margins a bit. Yet there’s a whole new curve of efficiency waiting in the world of pull. It’s time to start talking about savingtrillions, not millions. Companies should think in terms of big, strategic, double-digit improvements, new markets, and new ways to cooperate. Here is a road map

Read on. (I love that he calls social networking a “bubble”. I’m with that.)

This week at IIW in Mountain View, we’re going to be talking about, and working on, improving markets from the buyers’ side. (Through VRM and other means.) On the table will be whole new ways of relating, starting with systems by which users and customers can offer their own terms of engagement, their own policies, their own preferences (even their own prices and payment options)—and by which sellers and site operators can signal their openness to those terms (even if they’re not yet ready to accept them). The idea here is to get buyers out of their shells and sellers out of their silos, so they can meet and deal for real in a truly open marketplace. (This doesn’t have to be complicated. A lot of it can be automated. And, if we do it right, we can skip a lot of the pointless one-sided agreement-clicking friction we now take for granted.)

Right now it’s hard to argue against all the money being spent (and therefore made) in the personalized advertising business—just like it was hard to argue against the bubble in tech stock prices in 1999 and in home prices in 2004. But we need to come to our senses here, and develop new and better systems by which demand and supply can meet and deal with each other as equally powerful parties in the open marketplace. Some of the tech we need for that is coming into being right now. That’s what we should be following. Not just whether Google, Facebook or Twitter will do the best job of putting crosshairs on our backs.

John’s right that the split is between dependence and independence. But the split that matters most is between yesterday’s dependence and tomorrow’s independence—for ourselves. If we want a truly conversational economy, we’re going to need individuals who are independent and self-empowered. Once we have that, the level of economic activity that follows will be a lot higher, and a lot more productive, than we’re getting now just by improving the world’s biggest guesswork business.

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The escape key

September 22, 2010 in Future, problems, Technology | 3 comments

I love this from Dave:

The why of it: I want to create, out of RSS, something like Twitter, but not locked up on one company’s servers. Call me an opensorcerer or a rastafarian, but I like networks that aren’t controlled by one company. Esp not a tech company.

Doing what needs to be done. Yesss.

Sighs of the times

September 16, 2010 in Future, history, Ideas, infrastructure, Past, Quote | 2 comments

Several pieces worth noting.

From back in February, The Smarter You Are, the Less You Click, in ReadWriteWeb. It begins,

If the latest numbers from online ad network Chitika are anything to go by, then we may well be on our way to the world of Idiocracy. According to the study, which compared click through rates to college education, the less educated your audience, the more likely they are to click through on an advertisement.

While this may be good news for some, it certainly seems to spell doom for supporting intelligent content through advertising.

From almost ten years back, Andrew Odlyzko’s Content is not king. Way ahead of its time, even if current winds continue to blow against his vectors. Andrew concludes,

General connectivity is likely to lead to demands for symmetrical links on the Internet. Hence fiber to the home may be needed sooner than is generally expected.

Whether content is king or not has direct relevance for the question of whether the Internet will continue to be an open network, or whether it will be balkanized. If content were to dominate, then the Internet would be primarily a broadcast network. With value proportional to the number of users, there would be few inherent advantages to an open network. The sum of the values of several completely or partially separate networks would be the same as of a unified network. On the other hand, if point-to-point communications were to dominate, and if Metcalfe’s Law were to hold, there would be strong economic incentives to a unified network without barriers. This is considered more fully in Section 4 of [Odlyzko3]. The general conclusion there is that even though Metcalfe’s Law is not fully valid, the incentives to maintain an open network are likely to be very strong. This will be largely because content is not king, and effective point-to-point communication will demand easy interconnection.

An extreme form of the “content is king” position, but one that is shared by many people, and not just in the content industry, was expressed recently by the head of a major music producer and distributor:

“What would the Internet be without “content?” It would be a valueless collection of silent machines with gray screens. It would be the electronic equivalent of a marine desert – lovely elements, nice colors, no life. It would be nothing.” [Bronfman]The author of this claim is facing the possible collapse of his business model. Therefore it is natural for him to believe this claim, and to demand (in the rest of the speech [Bronfman]) that the Internet be designed to allow content producers to continue their current mode of operation. However, while one can admire the poetic language of this claim, all the evidence of this paper shows the claim itself is wrong. Content has never been king, it is not king now, and is unlikely to ever be king. The Internet has done quite well without content, and can continue to flourish without it. Content will have a place on the Internet, possibly a substantial place. However, its place will likely be subordinate to that of business and personal communication.

From GBN: The Evolving Internet: Driving Forces, Uncertainties and Scenarios to 2025. Specifically,

One scenario describes a familiar roadmap in which the Internet continues on its trajectory of unbridled expansion and product and service innovation. The other three challenge that future, and in the process illuminate various risks and opportunities that lie ahead for both business leaders and policy makers. These scenarios are:

Fluid Frontiers: The Internet is pervasive and technology makes connectivity and devices more and more affordable.

Insecure Growth: Users—individuals and business alike—are scared away from intensive reliance on the Internet as cyber-attacks and security lapses proliferate.

Short of the Promise: Prolonged economic stagnation and protectionism slow the Internet’s spread and potential.

Bursting at the Seams: The ubiquitous Internet is a true success story…until capacity bottlenecks create a gap between big expectations and a more modest reality of Internet use.

I had more on this list, but somehow the post got truncated, and I’m too busy now to find Humpty’s parts. So this will have to do.

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Why Howard Stern’s next act is Internet radio

September 3, 2010 in Business, Future, Live Web, radio | 13 comments

Howard Stern‘s contract with Sirius XM is up at the end of the year, and it was good to hear on the show this week that the full retirement option is off the table. That was one of five options Howard said he was considering. Says the Stern site (on a wrapup of Thursday’s show),

Howard said he had a ‘5 point plan’ for the show after his Sirius XM contract expires in December: “I know what the future is.” Howard explained: “One of the points is if we decide to stay here…again, if we decide to stay here.” The other 4 points are the other 4 options–one of which (retirement) has already been taken off the table, but until then: “For four months I’m a company man.”

Before I go into my own prediction, I want to give props to Rob Eshman’s Serious Stern blog, in particular to Ten Reasons Howard Stern’s Retirement Will Hurt the World. Here’s the one I’ll focus on:

9. There will be no one else to save satellite radio.

Unless they find the Moshiach and give him a channel, shalom Sirius.  And I say that as someone who like a friggin’ genius bought stock at—I don’t want to say what I bought it at.  I hope Mel Karmazin will figure out a way to transform the company, but under the current model, it really needs a big personality.  No one has an audience as loyal as Howard’s. Done. Period.

Earlier this week, Howard recalled and compared his meetings with XM and Sirius back when both were courting him. These meetings went down while the curtain slowly closed on Howard’s long tenure in terrestrial radio. XM bragged about having more subscribers, having more repeaters on the ground, yada yada, while Sirius asked him what it would take, and then took it. Once on Sirius, Howard rocketed the company past XM in the satellite radio marketplace, and Sirius eventually bought XM. To sum it up, Howard was the star satellite radio needed to establish itself as a medium.

Now Internet radio needs the same thing. It’s time for Howard to make his move. But it doesn’t have to be entirely away from Sirius XM. The two can be bridged. In fact, they need to be — at least for Sirius XM to survive in the long run.

Right now nearly everything you can get on Sirius XM you can get on the Internet, or on what’s left of terrestrial radio, most of which is also on the Net as well. Stations identify with “WFFF and WFFF.com,” the way they used to say “WFFF AM and FM.”  True, “tuning” on the Net is mostly a chore, but the stuff is there, in far more abundance than on Sirius XM’s channels. That company’s stock is under a dollar, and the market’s faith is not positive. But then, Wall Street doesn’t have a clue about Howard. Or it has the wrong clues. For example, finance blogger Relmor Demitrius considers Howard’s importance, and comes to this:

Conclusion. OEM sales exposed the product to many consumers.  They like XM just as much as they like Sirius, but some (less than 5%) are willing to pay for access to Howard, and probably only half of those 5% only for Howard.  Those that have XM haven’t made significant efforts to move over to Sirius, or cancel XM when their free trial ran out, and install a Sirius exclusive radio.  I believe by the facts presented here that Howard is well worth his salary and should be paid accordingly, as well as offering him on smart phone applications and any overseas content offerings.  But is he the end all savior of satellite radio?  Absolutely not.  Satellite radio would be here with or without him.  Company is stronger with him, but would survive just fine without him.  In fact, the cost difference is so minimal, it would be in tune to having a bad year, or a storm hitting your oil well that month.  A small hiccup that would easily be erased with time due to the overwhelming popularity of the product itself and the now vast options of content offered by both companies.  The revenue generated and saving of the 100 million of his contract would simply give reason to spend it elsewhere, and sign other talent to compensate.  Like any company that losses an asset and has to repurchase another one.  Howard’s popularity is no longer so huge that him leaving the platform would harm it in any way medium or long term.  The facts are quite clear on this.  Sirius XM added more than 1 million customers this year alone.  That would offset losing Howard Stern right there.  Their growth would probably cover any cancellations and they wouldn’t miss a beat.  The company that hired Stern 5 years ago is vastly different in 2010.

This is all framed inside satellite radio, which is floundering. What it misses is what will happen when Howard moves to the Net with his own subscription service. Howard will make Internet radio matter, just like he made satellite radio matter. He won’t do it alone, but it will happen a whole lot faster because he’s there.

Right now most Internet radio is free. And that’s fine. In fact, it’s good, and important. But not all radio will be free, just like not all television is free, and not all newspapers and magazines are free. Some broadcasting, like public radio and television, you can pay for voluntarily. But that won’t work for Howard. He’ll want to charge for the goods, and he’ll want to legitimize the business model, just like he did with satellite radio. Count on it.

Stop for a moment and go read The Web is Dead. Long Live the Internet. in Wired. It’s this month’s cover story. The bottom line is this: Internet usage through apps and subscriptions is going up, fast. We’re listening to radio through smartphones, iPads, laptops and other new devices. With the spread of Wi-Fi, 3G, 4G and other wireless connections, we will no longer be tethered to our houses or cars. We will move toward what Bob Frankston calls ambient connectivity. How we get there is less important than the bait that pulls us in that direction. Howard is great bait. That’s why he’ll go there. He fixed satellite radio. Internet radio is next.

What I hope is that he’ll do it independently, and not just through one of the carriers (say, Verizon, AT&T or Comcast). We should be able to download a Howard app for our Android, Symbian, or iOS (Apple iPhone or iPad) device and listen any way we like, anywhere we like. And pay a monthly fee for it.

Now here’s the opportunity for Sirius XM: we should be able to get Howard there too. That’s not just because it’s a good distribution deal, but because the fate of satellite radio is to serve as a repeater for Internet radio. Everything is being absorbed into the Net, including satellite radio. I’m sure Howard knows that. In fact, I’d be amazed if he doesn’t.

So far Sirius XM has done an awful job of embracing the Net. Getting Howard (or any Sirius XM channel) on a browser requires a zillion clicks and an authentication routine that makes going through customs and passport control look simple. The Sirius app for the iPhone is also useless (at least for me and countless others) without Howard (who has never been on it, and it’s never been clear why), and isn’t that great in any case.

But it can be done well. The integration of Internet, satellite — and even terrestrial radio — should be as seamless as possible. If Howard and his new partners get the right techies to help, they can kick ass. In fact, I’m betting that they’ll do exactly that.

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An oracle looks at Oracle

August 24, 2010 in Business, Future, Ideas, Technology | 3 comments

ERP Software Advice has put together an informal but well-thought-out poll on Oracle’s next take-over target. Dig it here. My own off-the-wall bet was on Akamai, which Stephen was kind enough to include in his report. Even if you don’t follow Oracle or the other companies listed, it’s a very interesting exercise (created by Stephen Jannise). And it will be fun to see who is right and why. Because Oracle is a hungry cannibal. It can’t help eating other companies. Somebody’s gonna get chomped. (And somebody after that, and after that.)

Bonus link.

The train goes the other way

July 23, 2010 in Blogging, Business, Cluetrain, Future, Ideas, Technology, VRM | 4 comments

Marketing Needs To Stop Its BS and Wake Up, the headline says.

True.

The bottom line: “At the end of the day, audiences have moved on and their expectations have changed. The next five years will see drastic changes in the way organizations engage with their audiences. It’s not a choice anymore. These are the ‘cluetrain’ years.”

Yes, but what will change most is how ‘audiences’ engage with companies.

r-buttonFor r-buttonone thing, we’re not ‘audiences’ any more. And we’re not here for the show. We’ll have our own ways of engaging, and they won’t just be through “social media” that are privately owned and we don’t control. In fact, those ways might include the symbols you see here. You’re on the left, and the company you’re engaging with is on the right. If that company believes a free customer is more valuable than a captive one, the symbol appears, or turns from gray to red.

For more on all that, go to Cooperation vs. Coercion, which I posted on the ProjectVRM blog this morning. Also see three other posts on this blog from a couple days ago. Pointers to those are here.

If you’re a marketer, and you want some fresh clues about how the tide is turning, take the time to read through those. They’re not gospel, just some blog posts. But they point in a direction, and it’s not toward marketing as usual, even if that marketing is called “social”.

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EmanciPay

July 19, 2010 in Business, Future, Life, music, Technology, VRM | 8 comments

At ProjectVRM we call EmanciPay “a relationship management and voluntary payment framework in which buyers and sellers can present to each other the requirements and options by which they are willing to engage, or are already engaging”. These include preferences, policies and choices about what to pay and how. (Actual payment would be carried out by PayPal, Google Checkout or some other system built for the purpose.)

All of this is new stuff for buyers, and we’re not building it all out at once. In fact, we’re starting with a small piece of code for the seller’s side, so they can signal willingness to engage with buyers in the free and open marketplace, rather than only in the sellers’ own silos. If they want to signal that willingness (which we might call “VRM-friendliness”), they’ll include a bit of RDFa code in their Web pages. If that code is present, the seller’s r-button goes from a default gray to red. If the user already has a relationship (or has had some other interaction) with the seller, the buyer’s side r-button also turns red. So, in this mocked-up example —

— I can see that KQED is VRM-friendly, and that I already have had some kind of dealings with the station.

Right now the code for both sides is in the works, and is also a Google Summer of Code (GSoC) project. It builds to a large extent on Tipsy, described as a “a framework for voluntary donations to bloggers, musicians, and other content creators on the web”. Tipsy is the creation of Oshani Seneviratne and Adam Marcus, both grad students at the MIT Computer Science and Artificial Intelligence Laboratory (CSAIL), whom I got to know through David Karger, a professor at CSAIL, whom I got to know through Keith Hopper, who fathered ListenLog. Our GSoC programmer is Ahmad Bakhiet, a student at Kings College London.

When we’re through with the current stage, we’ll be ready to test out the seller’s side code with stations (or with anybody), which will include means for deciding what happens when the user clicks on the right-side r-button. What matters most at the first stage is the signal of VRM-friendliness, which is a huge state-change form the old silo’d business-as-usual. What it says is “I’m open to what you bring to the market space between us, and to a potential relationship.”

We have this in the real brick-and-mortar commercial world, but not in the e-commerce world, for the simple reason that we have lacked mechanisms for creating the open market spaces between buyers and sellers — the space in the middle here:

Phil Windley of Kynetx gives a perfect “History of E-Commerce” slide in his talks. It goes,

1995: Invention of the cookie.

The End.

Cookies are bits of code that sites put in your browser to help them remember stuff about you. These are handy in many ways, but they also put all responsibility in the hands of those sites — of the sellers.

And if you want to do serious shopping, you can’t just put down cash or a credit card, do your business and walk away. No, you have to register. And to do that you need to accept terms of service that are known in the legal trade as contracts of adhesion. These are usually not read by users for several reasons, the most important of which is that they are not negotiable. Whether or not they are unconscionable, or enforceable, is beside the point. If you want to do business, you have to agree.

Where contracts of adhesion apply, markets are not conversations.
Needing to accept these contracts is a big source of friction in the online marketplace. It’s one of those areas where things are slower online than off. It is also therefore one of those areas where the better model is the familiar offline brick-and-mortar one. (In fact, one could argue that loyalty cards bring to the brick-and-mortar world one of the more annoying inventions of online retailing.)

So that’s a big part of EmanciPay’s challenge, and something we’ve been working on at ProjectVRM. What we’re working to create is a two-sided approach to eliminating the need for users to accept one-sided contracts. We’re creating code with easily-understood wording and symbols, which can be read by lawyers, ordinary users, and machines (ideals first articulated by Creative Commons.) This code can be used for expressing preferences, policies and bases on which each side can trust the other. There’s much more that can go on both sides, but those are a start.

When you click on the seller’s r-button in EmanciPay, you might see a pop-down menu that looks like this:

The new item there is the symbol I’ve labeled “terms”. It’s one half of the iconic “scales of justice.” A similar one might be on the buyer’s drop-down menu as well. Also there might be preferences, standing requests for products or services, links to personal data stores, or whatever we feel like putting in there.

We see the r-buttons and their affordances as places where both the buyer and the seller (or the individual and any organization — this needn’t be limited to commercial settings) can offer, selectively, means of engagement and the data required.

But one of the first jobs here is to get the paranoid lawyers out of the room and the engagement-oriented ones in the room, to help describe new terms of engagement that yield little or nothing in real protection, while offering means for engagement that reduce or eliminate the frictions to which we have become too accustomed over the last fifteen years.

While we’re still baking EmanciPay, I want to visit some questions about what my actual or potential interactions with KQED, WBUR, WWOZ and other stations on my ListenLog might be. There are many possibilities here. One might be to take a budget that I pay down proportionately through time. Another might be to just throw some money now and then at sources of programs that I’ve found especially good — or that I like right now, for that matter. We can be real-time about this. Another might be to pledge money to stations where which I spend more than X amount of time. The list can go on.

I can also, at my discretion, also share some or all of my data with stations and other parties (such as program hosts or producers).

And I can also open myself to programmatic approaches, created by other parties, that work inside the EmanciPay framework. The possibilities are endless here, and suggestions are welcome.

At this stage we plan to test out and play with EmanciPay at first by using Tipsy‘s lottery model. In this one, listeners pay one source, on (say) a monthly basis, with the source being chosen as the winner of a lottery. In other words, if you look at the list of stations on my ListenLog, I would budget $X per month to pay out to some lucky public radio station. Code on the station’s side (the same code that lights up the seller’s r-button) would make them eligible for winning my monthly lottery. At the end of the month, the lucky station gets paid. Get enough listeners and stations involved, and we can have some fun with it.

But that’s just a small first step. The ones that follow will shake down richer and more symmetrical, involved and cross-informative relationships between stations and listeners — and then expand out into other territory, I hope starting with the music industry. From there we can move on to other content industries, and then to the broader marketplace in general.

If all goes according to plan, r-buttons will be commonly used and well-understood symbols. Of course, plans can change. Alternative ideas are sure to emerge, along with many improvements to this one, which is among many others in the VRM movement. It just happens to be the one I’ve been working on most.

Meanwhile, big thanks to to Vince Stehle (who has moved on from Surdna, but made the grant happen when we needed it most), to Keith Hopper and NPR, to Jake Shapiro and the crew at PRX, to many other friends in public radio (and to ones in free commercial radio as well, such as Bill Goldsmith of Radio Paradise), to Daniel Choi, Oshani Seneviratne, Adam Marcus, Ahmad Bakhiet and other helpful programmers, to the VRM community, and to the Berkman Center, which has kept faith with me and with ProjectVRM through the years required to get things off the ground.

We’re still getting started here. But we’ve come a long way too.

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R-Buttons and the Open Marketplace

July 19, 2010 in Future, Ideas, Life, Live Web, Technology, VRM | 8 comments

Three things happen in a marketplace. One is transaction, another is conversation and the third is relationship. Let’s talk about what you, as a customer (not just a consumer), can do with each.

Transaction

Let’s start with price. Here in the industrialized world, price has been something that sellers have set, and buyers have paid, ever since John Wanamaker invented the price tag in the late 1800s. In some cases buyers have had room to haggle (such as with buying a horse or a car), but on the whole we customers pay what sellers ask. Or we move on.

A price is a signal. So is buying something. So, in a less direct way, is not buying. But those aren’t the only signals that matter. A lot can happen between the point where you start shopping and any seller’s bottom line, on both the seller’s part and yours.

Take the signaling system called advertising, which is becoming a half $trillion business, worldwide. Most advertising is, almost by definition, wasted. Wanamaker’s famous quote — “Half my advertising is wasted. I just don’t know which half. — was off by nearly fifty percent. The amount of advertising that does nothing for customers is usually close to one hundred percent. Sure, advertisers try to minimize waste; and in many cases (such as Google’s AdSense and AdWords), advertisers only pay for clicks. And advertising pays for many good things in the world. But there is a limit to what it can do for you, as an individual buyer, and that limit is set by who does the signaling.

What if you were able to signal your interest in an umbrealla, some binoculars, size 9EEEE running shoes, or a stroller for twins, in the next half hour — and to do that in a secure way that doesn’t reveal to potential sellers any more than they require to respond, and doesn’t put you into any marketer’s pitch mill? What if you could name the price you’d pay for whatever — and not have to do that inside any company’s closed and private marketplace?

Conversation

The first thesis of The Cluetrain Manifesto is “Markets are conversations.” We meant several things by that. One, as we explained in the book, was

The first markets were markets. Not bulls, bears, or invisible hands. Not battlefields, targets, or arenas. Not demographics, eyeballs, or seats. Most of all, not consumers.

Another was this:

For thousands of years, we knew exactly what markets were: conversations between people who sought out others who shared the same interests. Buyers had as much to say as sellers. They spoke directly to each other without the filter of media, the artifice of positioning statements, the arrogance of advertising, or the shading of public relations.

These were the kinds of conversations people have been having since they started to talk. Social. Based on intersecting interests. Open to many resolutions. Essentially unpredictable. Spoken from the center of the self. “Markets were conversations” doesn’t mean “markets were noisy.” It means markets were places where people met to see and talk about each other’s work.

Conversation is a profound act of humanity. So once were markets.

Marketing got the message, and conversation of the literal sort is now part of the marketing canon. But marketing reform didn’t stop there. Marketing is now all gaga over “social media” as well, in part because many believe that Cluetrain was all about “social” markets. I don’t remember thinking about it that way at the time, but I can see why people think so. Regardless of that, there is a big delta between social activity in markets and “social media” as they are understood today. Here are the first two paragraphs of Wikipedia’s social media entry (since it will be revised, here is the version I’m quoting:

Social media are media for social interaction, using highly accessible and scalable publishing techniques. Social media use web-based technologies to transform and broadcast media monologues into social media dialogues. They support the democratization of knowledge and information and transform people from content consumers to content producers. Andreas Kaplan and Michael Haenlein define social media as “a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content.”[1] Businesses also refer to social media as user-generated content (UGC) or consumer-generated media (CGM). Social media utilization is believed to be a driving force in defining the current period as the Attention Age. A common thread running through all definitions of social media is a blending of technology and social interaction for the co-creation of value.

Social media have been modernized to reach consumers through the internet. Social media have become appealing to big and small businesses. Credible brands are utilizing social media to reach customers and to build or maintain reputation. As social media continue to grow, the ability to reach more consumers globally has also increased. Twitter, for example, has expanded its global reach to Japan, Indonesia, and Mexico, among others. This means that brands are now able to advertise in multiple languages and therefore reach a broader range of consumers. Social media have become the new “tool” for effective business marketing and sales.[2] Popular networking sites including Myspace, Facebook and Twitter are social media most commonly used for socialization and connecting friends, relatives, and employees.

Wisely, Wikipedia has the entry flagged for “multiple issues.” Here are mine:

  1. The “social media” named above are corporate entities, not personal ones. Blogging, instant messaging, texting, emailing, voice and other equally (or more) social and conversational technologies — ones that are not owned by anybody, most of which rely on the Net’s agnostic protocols — are ignored.
  2. “Social media” is for marketing. In other words, something that exists mostly to serve sellers, not buyers.

Forgotten or ignored by the writers, and by marketing in general, is Cluetrain’s prime clue: one that comes before all ninety-five theses:

Social media, as described by that Wikipedia entry, are about extending marketers’ grasp. Not about extending the reach of human beings.

The Cluetrain hasn’t jumped the tracks here. But a lot of marketers sure have.

Relationships

Companies care about relationships with customers, of course. They manage those relationships many ways, including customer relationship managment (CRM) systems. While not nearly as big as advertising, CRM is still a huge industry. In “CRM: Then and Now”, Josh Weinberger of CRM Magazine writes,

According to figures from AMR Research (now part of industry-analysis giant Gartner), annual sales of CRM software exploded from $762 million in 1997 to $14 billion in 2007—nearly a 20-fold increase in just a decade.

Over on your side — the customer side — we have VRM, for Vendor Relationship Management. Thanks to Josh and other good folks at CRM Magazine, VRM is on the CRM radar. (Here’s the table of contents for the May edition of the magazine, with a series of VRM — and Cluetrain — related articles. And here’s what I wrote about those on the ProjectVRM blog.) Right now VRM is a $0 billion business. But then, so was the Internet at one point. (At a base level, it still is, even though it supports $trillions in business activity.) So, while VRM is still pre-natal, the Internet isn’t much older. If we date the commercial Web from the start of e-commerce in 1995, it’s a sophomore in high school. If the slate of economics in the Internet Age has a near-infinite height and width, most of it is still clean.

The informational environment supported by the Internet’s growing protocol suite is already much larger and more thick with possibilities than could ever be contemplated in the old brick-and-mortar retail world. This new environment also encompasses and enlarges the scope of brick-and-mortar business far beyond their old physical dimensions. The Net also invites the development of tools for doing just about anything that can be imagined when every connected entity is at a functional distance of zero from every other entity. That’s why the Net’s protocol suite has grown over the years, and will continue to grow. It seems only reasonable that some new tools coming down the pike will help buyers manage relationships with sellers at least as well as sellers manage relationships with buyers.

Right now there are many tools, services and other stuff in the VRM pipeline. In the next two posts I’m giong to show you a couple of those tools. The first is ListenLog, which provides a way for online listeners to log their own activities, and to better understand which stations ane programs matter to them, and how. The second is EmanciPay, which does two things. One is provide a way for customers to signal the amounts they are willing to pay, and for what. The other is to signal the customer’s own terms of engagement, as an alternative to the current seller-provided terms, which by default —

  1. are based on distrust,
  2. almost nobody reads,
  3. give all advantages to the seller,
  4. have hardly changed since 1995, and
  5. don’t exist in the everyday brick-and-mortar world, where you don’t have to become a “member “of a store just to buy a shirt or shoes there.

Borrowing the argot of economics, we’re looking here to reduce or eliminate information asymmetry, and to apply the Internet’s end-to-end principle to buyer-seller interactions. Our goal is not to create a whole new kind of marketplace, but rather to return the ones we have to what markets were like before industry won the Industrial Revolution: places where buyers and sellers met, talked, came to know one another — and otherwise engaged in a system that was not limited to choices provided only by sellers.

It helps consider the matter of context. That is, your context. Right now, as a customer, your context is usually comprised of many retailers, each with many products. The way the industrial retailing system works today, most sellers want to control their relationship with you, inside their CRM system, or whatever other systems they use. In the tech world, we call each of these a silo. The mental model looks like the image on the left.

Retail silos are controlled and contained spaces, each standing on the seller’s own foundation: its rules for interacting with customers. All the seller’s goods are in there. So are its employees, its legal stuff, its products, its R&D, its trade secrets — and its data about you. That data includes whatever you’ve shared with them, knowingly or nor not, in the course of doing business with them, or simply moving about in the world, leaving a crumb-trail of information about yourself and what you’ve done. In many cases your relationship is formalized with a “loyalty card” (like the ones on the right) or some other form of membership.

Each of these is your membership in a seller’s silo. Thus the pile of cards shown on the right can also be represented this way:

Your relationships in this environment are all separate, requiring that you operate within each retailer’s container. Your personal data, preferences and buying history with one company are not easy to move or duplicate into another. Nor are they meant to be. The way this system works, the sellers make all the rules. And each seller has its own rules. By this system, a free market is your choice of silo.

You too have a container as well. That container is what you consider private and yours alone, even if some of it is shared, selectively, with other parties. This information might include your relationships, your finances, your weight, your diet, your travels, your health. True, much of that data (for example, with health) is out of your hands. But you still have a sense of what’s private and yours alone.

For a look at how much your own silo matters, do a search for “privacy“. The one I just did brought up 1,390,000,000 results. That’s more than the results for “face” and “hand” put together. Privacy is a big deal in these early Internet years because you’re not in control of it. All those silos out there — the ones with your personal data — have far more control over your data than you do.

Markets, in both their literal and metaphorical meanings, are middle grounds. They are places where we are selectively open to society, and especially to sellers — and where they are open to us. One way to represent that is to turn our silos on their sides and open them up, so we each have a representation of containment, but also of openness, and even of attraction. So, instead of having silos, we have magnets, like this:

You are on the left. The seller is on the right. And the market is in the middle.

The VRM community is working on building this out. (As we said above, the CRM community has begun to join the effort as well.) We are doing this by creating ways of relating in which both sides are open to the other, but neither contains the other. The two can have attractions toward each other, but engagement is optional. Think of the result as a market that’s far more free than the your-choice-of-silo model.

We call these two shapes “r-buttons“. The “r” is for relationship. We use the color red, at least some of the time, because that was the color I used when I first drew r-buttons on a whiteboard when I was describing to PRX techies how VRM worked. At the time I was just talking about buyers and sellers, not designing graphic representations of anything. But the casual illustration worked, so we’ve run with it. (My wife just suggested that the two buttons together might be “our-buttons”. I like that.)

Next: ListenLog.

After that: EmanciPay.

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