I’m big fan of LeanCanves so I’ll explain my social media decentralization(SMD) model via two lean canvases. As I explained in my previous post about the main milestones the SMD will go through while building a stable revenue model, we will have 3 important milestones to consider:
1. Building stable, secure and extendable platform, based on Free Software license, keeping the Total cost of ownership(TCO) low.
So consider the SMD platform as variant of Shopify and Volusion for content creators, where you could rely on stable secure platform, which could be extended further with additional functionality. Since their inception, Shopify, Volusion, and their competitors in the niche enabled tens of thousands shop owners around the world to go online, processing above $5Bln in sales for 2013.
In the SMD what the people are going to ‘fuel’ their profiles with would be their content and their P2P/e-commerce ratings which they are going to integrate in their core profile via plugins and monetize¹ via the best practices from these industries.
2. Integrating all content monetization models, based on trust, transparency and knowledge sharing, via plugins.
One of the most important plugins, reflecting the trust-monetization will be the Personal References Directory plugin:
The basic idea behind it is – the ad industry is corrupted, as the only engagement between the platform, showing you an ad, and the advertised product or service is the money paid for the ad space.
Few years ago Pat Flynn did something fundamental, showing how this could be fixed. He was a laid-off architect, starting online business when he did something unique nobody tried the same way – he started sharing his knowledge and experience he built while doing his business to all his readers for free. This way he turned his business to a ‘lab’ for his fans. The main revenue stream for Pat Flynn‘s business is the Resources page on his site, where he shares honestly what kinds of services and products he uses, while doing the business. The products and services are referred with affiliate links and what he monetizes is the trust, generated in the community. Since 2008, the affiliate revenue Pat reports is about $1.4mln.
This is the model which confirmed my initial assumptions how the social media decentralization would work one day and which inspired me to continue in this area. There is one thing I think the people who follow Pat Flynn need, so they could implement the model easier and it’s the Personal References Directory plugin described in the diagram above. With this plugin we could monetize even more things the people use and trust, not only around their businesses, but in their personal lives.
Following intensively Pat Flynn, I see there are people in the community loving him so much for the knowledge he shares, that they go and click on the referral links explicitly in order to give him credit, despite they could order directly. I did it also, when I bought a product and service he recommends.
3. Integrating all e-commerce and P2P commerce models via plugins to a decentralized profile so the users would be able to transfer their ratings from one e-commerce/P2P commerce business to another one.
Here, as I described in my previous post, the P2P commerce is a billion dollars business, with projections to grow and reform the whole industry. Integrating its models in the SMD via plugins and core platform will allow the people to transfer their trust gained from one platform to another and gain profit from it, interacting with more businesses.
I’ll be happy to read your comments about my ideas.
¹ monetization – to utilize (something of value) as a source of profit