Archive for the ‘About’ Category

How Silicon Valley can Re-grow the Economy from the Bottom Up

February 28, 2009

Details:

1)     Create an Open Ad Network, similar to Adsense but for any multimedia, for use on social networking sites like Twitter, Facebook and FriendFeed, as well as blog sites like WordPress.

2)     While anybody can upload an ad and say how much they are willing to pay for its run, only users will have the power to distribute the ads.  IOW, users get to pick and choose the products and services they wish to endorse for their own social graph and casual readers.

3)     Ads are very dynamic, mostly limited-time offers and invitations by companies previously approved (Users will input their “150” – the number of brands we are each loyal to on average, which serve 80% of our everyday needs) .  Once the goal of the advertiser is met (such as 10,000 coupons saved or printed), the ad is automatically replaced by another in the queue.

4)     Of course, there will be room to introduce new products and services, too, for those companies seeking brand awareness.  This will spawn limited offers to targeted influencers such as “Can we send you our new coffee maker to try at home?”

5)     As users’ friends, family and followers engage with the ads, the user makes money.

6)     Smaller businesses that can’t afford to pay cash can offer users discounts.  For example, $.25 per engagement towards meals at my local restaurant (so if 20 of your local friends check out the ad of the new restaurant you recommend, you get $5 off your next meal there).  Also, if a startup cannot afford to pay, the user can override the “place best paying ads first” function and distribute the ads for little to nothing, to give deserving companies a boost and help make sure they stick around.

7)     Earned money can be spent at participating LOCAL businesses via cell phone exchange, so that users are encouraged to spend the money locally, to shore up their own communities.  If spent this way, the money is not taxable for the user (but would be subject to tax for the businesses) and the business picks up the bank transaction fees.  So even if you earned $1,000 a month or more via this system, you wouldn’t get taxed on it and you wouldn’t increase the tax rate of your primary income. (Of course, the government will have to sign off on this, but given the state of our economy, if there were a groundswell of support for this, it shouldn’t be a problem.)

8 )     The alternative is to withdraw cash once a month, which will be reported to the IRS and bank transaction fees will be charged.

Advantages:

1)     Individuals will earn and spend extra money, stimulating the economy, especially their local communities.

2)     Since people will be recommending products and services they know and enjoy, then trust, confidence and demand will all increase.

3)     Advertisers will finally benefit from an online advertising method that actually works for demand creation (as opposed to Search’s demand fulfillment).

4)     Because companies themselves cannot distribute the ads, goodwill and not just money is required for any and all ad runs.  This will make businesses more accountable to customers and society at large.

5)     Crappy ads will not be distributed.  Demand for higher quality ads will increase and professional copywriters, photographers, videographers, and so on will be put back to work.

6)     Everybody has the same, level playing field so that small companies without huge advertising budgets can still access the marketplace and compete effectively with big companies.

7)     Being able to access the market will make entrepreneurism skyrocket, creating income, tax revenue and jobs.

As I’ve written before, we should create a for-profit consortium to make this a reality.  The sooner the better.

Advertisements

The Internet’s Destiny: Five Truths

February 23, 2009

I’m honored that yesterday, Louis Gray – an extremely prolific and well respected social media observer and commentator – named Dawn’s Plan as one of his “five new blogs to watch.”  Since I’m getting new readers here because of it (Thank you, Louis), I thought I’d state my basic beliefs that inform everything I write about here.

 1) Business Models must be Distributive

The Digital Age is inherently about undoing the most egregious economic imbalances created by the Industrial Age, not creating more of them.  There is little difference between getting obscenely rich off the backs of others and getting obscenely rich off the brains and hearts of others. 

To his credit, Mark Zuckerberg recognized the value of each person’s social graph.  To his failure, he has yet to acknowledge that your social graph belongs to you and you should be compensated for its use.

Zuckerberg is a billionaire on paper while the Facebook membership that makes the network valuable earns nothing.  I predict Zuckerberg’s paper wealth will never be realized, because obscene concentration of wealth generated by exploiting others goes against what the Internet is naturally meant to be.

2) Advertising Distribution must be in the Hands of Users

Except for Search, Internet advertising doesn’t work.  It will never work when it is thrust upon us, because it is kneejerk to despise and easy to ignore.  Online advertising must be willingly accepted to be effective.  This demands taking ad distribution control away from advertisers and giving it to consumers.

Closed ad networks that pollute the Internet and do little to help the advertisers themselves will inevitably be replaced by open networks which offer ads that may be taken by users and placed on their own pages – if it is a product or service they wish to help promote.  This power shift will make corporations more accountable and will lead to higher quality ads and products.  Also, people will be less fearful of buying when they have recommendations from friends, family and coworkers. 

Placing ad distribution in the proper hands will thereby help our economy rebuild from the bottom up, as trust is injected back into the system and people start consuming again.  So by giving up power to distribute ads online, companies will gain.  At least the ones that are worthy will.   The others can die a quicker death and quit wasting resources that can be freed for better concerns.

3) Free must be replaced by Free plus Compensated

Free has been a collective disaster.  We obviously cannot move from an industrial economy to a digital economy (which we must do to survive) if there can be no transfer of digital goods and services for money.  That’s what an economy is.

4) Everybody must have a Place at the Digital Table, despite their Talents and Geography

Let’s face it, when it comes to making a living, the Internet has so far mostly benefitted left-brained people and has too often devastated right-brain people.  While geeks’ opportunities and incomes have exploded, creators like reporters, photographers, cartoonists and other writers and artists have lost their jobs and incomes.2008-05-01

Trade in digital goods and services holds the promise of allowing great numbers of people all over the world to make a living without raping the environment, but this can happen only if doors are opened to allow in all skills and talents, not just coding ability.

5) Google’s Domination is Unhealthy and Potentially Treacherous

Yeah, I don’t like Google.  Their hegemony rivals that of ancient Rome.  The good news is that Google is much more vulnerable than people think.  Their lion’s share of online ad revenue won’t last once the above four tenets are inevitably manifested.  The only unknown is exactly how long it will take.

If you want more details about any of these, I suggest you check out my archive.  You can also subscribe to my feed.

I hope you will stick around and give me your input.  I appreciate your comments and welcome discussion about how best to spur the Internet towards its natural destiny, for everybody’s benefit.