Forget financial markets for a minute, and think about the directions money moves in retail markets. While much of it moves up and down the supply chains, the first source is customers. The money that matters most is what customers spend on goods and services.
Now here’s the question. Where is there more money to be made — in helping supply find demand or in helping demand find supply? Substitute “drive” for “find” and you come to the same place, for the same reason: customers are the ones spending the money.
For the life of the commercial Web, most of those looking to make money there have looked to make it the former way: by helping supply find or drive demand. That’s what marketing has always been about, and advertising in particular. Advertising, last I looked, was about a $trillion business. Now ask yourself: Wouldn’t there be more money to be made in helping the demand side find and drive supply?
Simply put, that’s what VRM is about. It’s also what Cluetrain was about ten years ago. It wasn’t about better ways for the supply side to make money. It wasn’t about doing better marketing. It was about giving full respect to the human beings from whom the Web’s and the Net’s biggest values derive. When Cluetrain (actually Chris Locke) said “we are not seats or eyeballs or end users or consumers. we are human beings and our reach exceeds your grasp. deal with it.“, it wasn’t saying “Here’s how you market to us.” It was saying “Our new power to deal in this new marketplace exceeds your old powers to drive, lock in, or otherwise control us.” When Cluetrain said “The sky is open to the stars”, it wasn’t issuing utopian palaver. It was speaking of a marketplace of buyers and sellers whose choices were wide open on both sides. [Later… Chris Locke, who wrote that line (and those that followed), offers a correction (and expansion) below.]
On Cluetrain’s 10th anniversary, we have hardly begun to explore the possibilities of truly free and open markets on the Internet. They are still inevitable, because supporting those markets is intrinsic to the Net’s essentially generative design. Lock down users, or lock one in and others out, and you compromise the wealth the Net can create for you. Simple as that.
And that wealth starts with customers.
This is also what How Facebook Could Create a Revolution, Do Good, and Make Billions, by Bernard Lunn in ReadWriteWeb, is about.
I just wrote a brief response in Gain of Facebook, on the ProjectVRM blog.
No time for more. Not because it’s the Fourth of July, but because I’m in a connectivity hole (with latencies and packet losses that start at 1+ second and 15% packet losses and go up from there), but because I’m at my daughter’s wedding, and I need to get ready. Cheers.