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Friday, October 21, 2005

Comments

David Gibbons

Great topic Michael,

In terms of participation, I think that this will shake out with the most financially succesful ventures paying peer producers for their efforts ... it's istockphoto vs flickr if you like!

We all only have so much of our time that we'll give for free ... the rest must pay us.

I borrowed from Haque's microchunking to produce a model for thinking about how peer producers should be compensated. The dimensions to consider are;
a) The peer producers contributing as % of the product and,
b) The re-use that the peers effort is afforded in the community (i.e. annuity income opportunities)
Model Here http://photos1.blogger.com/blogger/606/784/1600/p2p_revshare.031.jpg
Applied here http://poductivity.blogspot.com/2005/09/why-ebay-bought-skype.html

The result is a 4-quadrant matrix with rev-share shared with participants increaseing as re-use decreases and % contribution increases.

The most profitable communities, for both participant and owner, is probably in the middle right somewhere - istock is close ... an average % contribution creates reliance on the community, yet you want as much re-use as possible ... at that point, the site is probable keeping 60% plus of the revenue generated, yet peer producers are well compensated & happy.

Point is, if you can afford to pay peer producers you must - that compensation will ultimately be how you compete for quality content - viva bootstrapping

Dean Ansari

There is a company, a search engine in fact, which does exactly what you are describing above, that is it shares its revenues with its users based on their usage of the service as long as this usage is honest and benefits all. This search engine is AnooX: www.anoox.com

AnooX is truly the future of the search engine: that is it generates the search results based on the Democratic majority Vote of the people, and that is why its search results are fundamentally better than Google or Yahoo, you can read about this in detail here:

So yes the fact that AnooX shares its revenues with its users and in fact its profits with its community members is very good, but even better than this is the fact that AnooX is fundamentally the better search engine.
http://www.anoox.com/whyanooxsrbetter.jsp

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