- 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.)
- 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.
- 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.
Understanding the concepts as relevant to Facebook, etc.:
- Who Should Pay the Piper for Facebook? (& the rest) – a business model solution to the Facebook business model problem
- Privacy AND Innovation ...NOT Oligopoly -- A Market Solution to a Market Problem – a regulatory approach that incentivizes the business model solution for customer-based revenue
- A novel architecture to monetize digital offerings – a scholarly publication in the Journal of Revenue and Pricing Management
- FairPay Changes the "Game" of Commerce – the core operational process of the repeated game that most fully realizes the FairPay strategy
- The Ghost of Pricing Future -- A Thought Experiment – the underlying logic of value-based pricing
- The Relationship Economy -- It's All About Valuing Customer Experiences – why we have to think differently about commerce
- Patron-izing Journalism -- Beyond Paywalls, Meters, and Membership – a rich illustrative summary for an important use case
- Making Customers Want to Pay You -- Research on How FairPay Changes the Game –foundations in behavioral economics
- Finding Good and Fair Customers -- Where Are the Sweet Spots? – where to start
- Profiting from Habit -- Seamless Monetization – making it simple
***Please contact me to explore how you can help -- fairpay [at] teleshuttle [dot] com.
Even better, read my highly praised book: FairPay: Adaptively Win-Win Customer Relationships.
*A few of the notable calls for more creative business models for social media: