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A Summary of

Audience and Wealth, Part II

Mario Gabriele
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This is a discussion intended for founders, investors, and learners in general, and will discuss: 1. The roles that creators, audience, and advertisers play 2. Why creators should solve for co-creation, shared status, and shared wealth 3. The emergence of new roles and new models

How the roles we play affect behavior

The role we think we play defines how we act in a particular situation. A 2012 study found that subjects made very different decisions depending on their subconscious roles: - Soldier role —> likelier to sacrifice one life for the good of the group (utilitarian) - Medic role —> less willing to put a price on life When answering business problems: - Engineers —> 13% thought it appropriate to resort to illegal tactics to win share in a new market - Managers —> 50%

Stakeholders and Currencies of Contribution

Every piece of content involves a series of transactions/exchanges, using a combination of four currencies: 1. Effort 2. Attention 3. Money 4. Ownership

Promotion-based monetization model

All parties pay in different currencies - Creators: effort - Audience members: attention - advertisers: buy attention, pay with money Downsides: - Incentivizes creators to sell audience attention, and not improve product quality - Incentivizes audience to pay least attention but benefit most from creators’ efforts

Sell-based model

Creators remove the need for advertisers by monetizing from audience members directly - Creators pay with effort - Audience pays with money, then attention - creator prefers a subscriber that pays but never consumes Incentivizes creators to improve their content, but can leave audience members left out

Investment-Based model

Creators that build wealth by investing in startups add a new stakeholder to the mix: company founder - Can be combined with above two models - Independent: creators buy ownership from founders with money and audience attention Downsides: - Limited - Restricted to tech and venture capital - Viable only for creators that can sustain themselves some other way

How to Improve these models

Incentives we want to magnify: - Distributing all four currencies amongst all parties - Co-creation: solicit/teach audience members to help out - Emphasize community status: elevate supporters and incentivize engagement - Share wealth: creators can reward/incentivize their community will encourage new + long-term members

New Roles, New Models

With these motivations in mind, we can define new models: - Advertisers as content escalators: a bigger audience leads to more ad dollars which leads to more earnings to be shared with the audience - Decentralized syndicates: by banding together, creators can form effective, high-signal syndicates and serve new companies to a larger pool of consumers and businesses - Engagement as payment: reward the individuals that are most engaged

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