Tuesday, June 26, 2018

An Open Letter to Influencers Concerned About Facebook and Other Platforms

To those concerned about Facebook (and its ilk), here are some potentially powerful new levers you can advocate, based on a more creative approach to business models.
  • Many prominent influencers have expressed concern about how the ad model perverts the incentives of Facebook (and/or Google, Twitter and others) to do serious harm to society, saying that more creativity is needed (see list below*). As Tim Berners-Lee said, "create a new set of incentives and changes...will follow."
  • My proposals go beyond those calls -- I suggest action based on a new class of user-sustained, relationship-value-first, business models that could negate those ills – and make our platforms more broadly humane and sustainable.  
  • This “innovative and visionary” FairPay architecture has been described briefly in Harvard Business Review, and more fully in the Journal of Revenue and Pricing Management, “A novel architecture to monetize digital offerings” (with eminent marketing scholar Marco Bertini as my co-author). 
  • These methods have been discussed with many companies, including vendors (such as NY Times, News Corp, Disney, Spotify, Rhapsody, IBM, Verizon, American Express, and many smaller companies), platform providers (such as Salesforce and Zuora), and market research firms (such as Forrester and MECLABS). 
  • They build on proven business trends and behavioral economics principles, but are not yet well-known. (FairPay is an open architecture in the public domain, not a product -- I am working on this as a pro-bono project.)
Immediate action can be begun:
  • Show that calls for better business models are not just cries in the dark, but can point to specific actionable strategies by the platforms and by others.
  • Provide market-based solutions that can be acted on by individual businesses, with reduced need for regulation or antitrust action.
  • Advocate a targeted, market-based strategy for regulatory or antitrust action that mandates business model incentive-based remedies, thus reducing need for a more intrusive hand.
You can help:
  • Consider why this approach is workable and powerful -- good for businesses, their customers, and society.
  • Spread the word to others who can help bring this to broad awareness.
  • Stimulate experimentation with this and similar strategies, to prove and adjust them (or to find alternatives) based on learning in varied business contexts and consumer market segments.
Learn how:

Understanding the concepts as relevant to Facebook, etc.:
Understanding the core of this new business model strategy in its deeper and broader aspects:

Understanding how to start with low-risk trials and low-hanging fruit:

***Please contact me to explore how you can help -- fairpay [at] teleshuttle [dot] com. 

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*A few of the notable calls for more creative business models for social media:
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On the deeper issues of social media and digital democracy
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More about FairPay

For a full introduction to FairPay see the Overview and the sidebar on How FairPay Works (just to the right, if reading this at FairPayZone.com). There is also a guide to More Details (including links to a video). 

My article in the Journal of Revenue and Pricing Management, "A Novel Architecture to Monetize Digital Offerings" also provides an overview of FairPay (summarized more briefly in the ESADE Knowledge article "Three building blocks to monetize a digital business," and previously in Harvard Business Review, "When Selling Digital Content, Let the Customer Set the Price.").

Even better, read my highly praised book: FairPay: Adaptively Win-Win Customer Relationships.

(FairPay is an open architecture, in the public domain. My work on FairPay is pro-bono. I offer free consultation to those interested in applying FairPay, and welcome questions.)