Notional Framework for Monetization Web2010

Monetization_Framework

Notional Framework Breaks the Problem Up

This framework is an extension of the ideas presented in Monetization for Web2010.

Social media provides the “real estate” for communications to happen. Whether social media is decentralized (ostatus, P2), or integrated by API and more centralized (twitter, facebook) the conversations are happening because people are connected. Without the backbone of social media this monetization would not be possible so they must be aportioned a piece of the revenue pie (20-30%?).

Web hosters (bloggers, companies, individuals) can engage in conversations on their own sites while sharing windows into the social media world. Folks that host shared media on their site empower and evangelize the social media brand (as I do with friendfeed with window real estate and twitter by content). By hosting their own content and seemlessly integrating their favorite social media “hang outs” individuals shoud see a cut of ad revenue (40-50%?).

Existing advertising networks (Google, Microsoft Ads etc.) have developed leading edge technology (algorithms) to match semantic meaning (meta data) from text to drive appropriate ads. In addition they provide a single stop for businesses to advertise to (business advertising aggregators). We can leverage their technology moving forward. (20-30%?).

But I’d like to see semantic algorithm businesses decoupled from advertising aggregators. That would comprise a four part business model allowing for greater competition and innovation within each space (with overlap). For example friendfeed could team up with wordpress to create personalized user profiles to better serve ad algorithms. Google could team up with web hosters to integrate Wave real estate directly into their web pages (like friendfeed has done).

Edit: I added input from the meta data extraction algorithms to the front end sites, as well as user like/dislike information back to the social media platform and advertising aggregator.

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  • http://twitter.com/Vukicevic Vladimir Vukicevic

    You're getting there. It feels like a few more things need to be clarified but this type of mixture can be very powerful.

  • http://www.jasonn.com jasonn

    Yeppers :) You nailed it pretty simply. Oversimple? Yes. Correct enough.

  • http://www.victusspiritus.com/ Mark Essel

    Simplicity intended and Muchas gracias for the affirmation. I believe the tools exist for the beta version of this package. It could open up doors to future iterations with highly interacting interfaces.

    From a coding standpoint I'd make this chart much more detailed, calling out specific scripts from a specific combination (say Google adwords and friendfeed embedded window). I had hoped to gather the interest and collaboration of bigger teams than myself. It's a win for all involved and is an inevitable evolution for self sustaining social media.

    At least I think so ;) (end shtick)

  • http://www.jasonn.com jasonn

    I like it as a simplified description of how you can market tangible goods and services
    via SM and search. If you're going to put a project together you have two fast-paced
    options: 1) startup; 2) open source group.

    Which option is your preference?

  • lanerapp

    This is nice, social media as the ultimate party host. The entire experience allows for a cordial overall experience for the guest consumer. And the competitive incentives remain. You might draw an arrow from data extraction toward front end hosts sites as well, they are competitive to understand/grow their audience.

  • http://www.victusspiritus.com/ Mark Essel

    Well let's consider the options.

    1)As a startup you can attract some hungry young hotshot developers. And their's a payoff when the technology is adopted and/or the business sells. The penalty being potential competition with those you want as collaborators (Google, Microsoft, twitter, friendfeed, facebook, etc.) An open API could build up relationships, addons, platform potential.

    2) Opensource attracts free developers, and lets all the players customize/configure/contribute to an API that satisfies all parties. It also engenders trust from the community.

    I'd have to say I'm leaning towards startup but Matt Mullenweg appears to have combined the two with Automattic.

  • http://twitter.com/Vukicevic Vladimir Vukicevic

    I'm not sure how much sense it makes to build an advertising application through an open source group. The concepts of open source and monetizing social media don't seem to match.

  • http://www.victusspiritus.com/ Mark Essel

    Much thanks lanerapp, updated the slide with your contribution, and an addition of my own. I'm looking to leverage the social community feeling of “hey this is a cool place to hang out online” with “these ads are dead on, maybe I'll check this out – after all my friends bought it and loved it”.

  • http://www.victusspiritus.com/ Mark Essel

    startup with open API it is!
    Thanks for the speedy and sharp advice Vladimir.
    Let's chat more by email, I'm messel at gmail dot com.

  • http://twitter.com/Vukicevic Vladimir Vukicevic

    Sounds good. I'll contact you later today.

  • http://www.jasonn.com jasonn

    Open Source projects and monetizing business models are compatible.

    Open Source isn't a communist model, contrary to certain GPL evangelists' perspective.
    Open Source is a method of gathering people with the same need into a group to perform a
    team task without restrictions on how that technology is used after the fact. So, if a
    hand full of us decide to go after VC and start a company, another hand full decide to
    develop a service as individual consultants and another group decide to continue
    developing for our own selfish tangible needs (never redistributing the source), that's
    all acceptable before we get started. It's nothing more than an agreement that we won't
    hold each other harmless for the contributions we make. It's nothing more than a
    prenuptial agreement amongst all players: developers, testers, end-users, implementers.

  • http://twitter.com/Vukicevic Vladimir Vukicevic

    I'm not arguing that open source development wouldn't create a good product. I just believe that the incentives might be misaligned, i.e. the developers would have an end goal that differs from that of the project-leads.

  • http://www.jasonn.com jasonn

    Open Source projects and monetizing business models are compatible.

    Open Source isn’t a communist model, contrary to certain GPL evangelists’ perspective.
    Open Source is a method of gathering people with the same need into a group to perform a
    team task without restrictions on how that technology is used after the fact. So, if a
    hand full of us decide to go after VC and start a company, another hand full decide to
    develop a service as individual consultants and another group decide to continue
    developing for our own selfish tangible needs (never redistributing the source), that’s
    all acceptable before we get started. It’s nothing more than an agreement that we won’t
    hold each other harmless for the contributions we make. It’s nothing more than a
    prenuptial agreement amongst all players: developers, testers, end-users, implementers.

  • http://www.victusspiritus.com/ Mark Essel

    I have seem what happened with Automattic and been very impressed with their execution and corporate culture. There are clear advantages to open source as long as you can work that source code development model into a powerful revenue generation engine. Jasonn if you'd like to chat more offline about potentially contributing to a new venture/open source/whatever please feel free to contact me (messel at gmail dot com)

  • http://www.jasonn.com jasonn

    I'll talk to you – whatever you/I decide to do.

  • http://www.jasonn.com jasonn

    That's a risk.

  • http://appsapps.info app

    Why is there always so much focus on advertising as the way to monetize content while allowing it to remain free? I think a large scale voluntary donation based model similar to the one at donationcoder.com could work, if not at least supplement it.

    It needs to be quick, easy, and secure for users to deposit into the system, and it needs to be as easy as clicking a “like” link to send a small amount of money to a content producer.

    And I would define a content producer as one that contributes to the system, both with their own content and sharing the content of others.

    In other words, if I share a link to one of your articles on a social network, and everyone likes, both of us should be rewarded for that, as we both played a part in either production or distribution of that content.

    DonationCoder is one of the very few successful microdonation based sites/communities on the web, and one could learn quite a lot from examining their model and listening to what they have to say about their experiences with the whole concept.

    Between their about page and this article from their founder (written after their first year), you'll find a lot of information that could be the springboard for much bigger and better ideas.

  • http://www.victusspiritus.com/ Mark Essel

    Wow, thanks for taking the time to read and sharing that information app! I'll definitely look into it further.

    At this time I'm trying to focus on something small I can build that will better match the information I freely share, and the types of products and services that I would gladly purchase. Admittedly this is not the only way to monetize, just one concept.

  • http://appsapps.info app

    In a way, that's part of the problem. You are thinking small and just for you when what we really need is something large that can benefit us all. (not intended to discourage or condemn your ideas)

    Ultimately, I would love to see a large company with a lot of reach get involved, not as a middleman looking to stuff their pockets with a chunk of the donation funds like companies such as TipJoy do, but as a benevolent non-profit community service project, for the purpose of collecting and distributing the funds.

    The one company that comes to mind that could easily pull something like this off, is Google. They are about the only ones I can think of that have the kind of reach required for the implementation and widespread adoption of this kind of system.

  • http://avc.blogs.com fredwilson

    interesting idea

    can you build this for the social media landscape (facebook, twitter, blog comments, frienfeed)?

  • http://www.victusspiritus.com/ Mark Essel

    Myself and a few others are looking into this now. (Vladimir Vukicevic is helping with concept, my friend Eli is the only other coding help at the moment (we're both learning php). Some good advice from Jason Cronkhite/Dean Powers (they have another social media collaboration project that I'd like to contribute to depending on time)
    1) Getting statuses is easy.
    2) Making sense out of them takes more time (Zemanta may help, got an email back that they may be interested)
    3) creating profiles isn't hard but could take a little time, there are numerous social sites doing this already (when we add memory/personalization)
    4) finding advertising aggregators that we can interact with by an API will take some research, Google has an API to adsense but it's only for sites with 100k hits/day.

  • http://avc.blogs.com fredwilson

    Keep me posted on how this is going

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    Hi ,

    I set up a Facebook profile where I can post my pictures, videos and events and I want to add you as a friend so you can see it. First, you need to join Facebook! Once you join, you can also create your own profile.

    Thanks,
    Jason

    To sign up for Facebook, follow the link below:
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  • http://www.jasonn.com jasonn

    Hi ,

    I set up a Facebook profile where I can post my pictures, videos and events and I want to add you as a friend so you can see it. First, you need to join Facebook! Once you join, you can also create your own profile.

    Thanks,
    Jason

    To sign up for Facebook, follow the link below:
    http://www.facebook.com/p.php?i=692001884&k=4VG…

    was invited to join Facebook by Jason A. Nunnelley. If you do not wish to receive this type of email from Facebook in the future, please click on the link below to unsubscribe.
    http://www.facebook.com/o.php?k=4feca3&u=100000…
    Facebook's offices are located at 1601 S. California Ave., Palo Alto, CA 94304.

  • http://www.jasonn.com jasonn

    Hi ,

    I set up a Facebook profile where I can post my pictures, videos and events and I want to add you as a friend so you can see it. First, you need to join Facebook! Once you join, you can also create your own profile.

    Thanks,
    Jason

    To sign up for Facebook, follow the link below:
    http://www.facebook.com/p.php?i=692001884&k=4VG…

    was invited to join Facebook by Jason A. Nunnelley. If you do not wish to receive this type of email from Facebook in the future, please click on the link below to unsubscribe.
    http://www.facebook.com/o.php?k=84bb12&u=100000…
    Facebook's offices are located at 1601 S. California Ave., Palo Alto, CA 94304.

  • http://www.jasonn.com jasonn

    Hi ,

    I set up a Facebook profile where I can post my pictures, videos and events and I want to add you as a friend so you can see it. First, you need to join Facebook! Once you join, you can also create your own profile.

    Thanks,
    Jason

    To sign up for Facebook, follow the link below:
    http://www.facebook.com/p.php?i=692001884&k=4VG…

    was invited to join Facebook by Jason A. Nunnelley. If you do not wish to receive this type of email from Facebook in the future, please click on the link below to unsubscribe.
    http://www.facebook.com/o.php?k=bd1e29&u=100000…
    Facebook's offices are located at 1601 S. California Ave., Palo Alto, CA 94304.

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  • http://www.jasonn.com jasonn

    =======================================
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  • http://www.jasonn.com jasonn

    =======================================
    To sign up for Facebook, follow the link below:
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    =======================================

    Hi,

    The following person invited you to be their friend on Facebook:

    Jason A. Nunnelley (Invite sent: Sep 25, 2009)

    Other people you may know on Facebook:

    Michael Nunnelley (Montgomery, AL)
    Amir Adanan (Leicester)
    Patrizio Moi (London)
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    Facebook is a great place to keep in touch with friends, post photos, videos and create events. But first you need to join! Sign up today to create a profile and connect with the people you know.

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  • http://www.jasonn.com jasonn

    =======================================
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    Hi,

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    Facebook is a great place to keep in touch with friends, post photos, videos and create events. But first you need to join! Sign up today to create a profile and connect with the people you know.

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  • http://www.victusspiritus.com/ Mark Essel

    Jason I keep getting spam on my blog from facebook invites, can you clean that up?

  • http://www.jasonn.com jasonn

    Mark, apparently I can't respond to your reply via Disqus.

    Regarding the Facebook spam, is it coming from my Facebook account or are you just asking for my technical input?

  • http://www.jasonn.com jasonn

    Bad Facebook, very very bad.

  • http://www.victusspiritus.com/ Mark Essel

    Jason I keep getting spam on my blog from facebook invites, can you clean that up?

  • http://www.jasonn.com jasonn

    Mark, apparently I can't respond to your reply via Disqus.

    Regarding the Facebook spam, is it coming from my Facebook account or are you just asking for my technical input?

  • http://www.jasonn.com jasonn

    Bad Facebook, very very bad.

  • http://www.jasonn.com jasonn

    =======================================
    To sign up for Facebook, follow the link below:
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    Hi,

    The following person invited you to be their friend on Facebook:

    Jason A. Nunnelley (Invite sent: Sep 25, 2009)

    Facebook is a great place to keep in touch with friends, post photos, videos and create events. But first you need to join! Sign up today to create a profile and connect with the people you know.

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  • http://www.jasonn.com jasonn

    =======================================
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    Hi,

    The following person invited you to be their friend on Facebook:

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    Facebook is a great place to keep in touch with friends, post photos, videos and create events. But first you need to join! Sign up today to create a profile and connect with the people you know.

    Thanks,
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  • http://www.mattressinchina.com Memory Foam Mattress

    social media is the most important elements of the web!
    but nowadays, it’s also a spam base~~~~

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