Yesterday I picked up The Whuffie Factor by Tara Hunt and needless to say… it is a pretty good read! I have been turning page after page over the past couple of hours and thought to myself… SELF you need to write some posts about the book.

I want to officially dedicate this week: WWW (Week With Whuffie) I am going to be writing a post every day this week outlining and disseminating different parts/quotes from the book.

Monday Topic: The Two Parallel Economies

In the book Tara talks about the concepts of the gift economy and the market economy:

“In the gift economy the more you give away, the more… you gain, which is completely opposite from currency in the market economy, where when you give away money, it’s pretty much gone. (pg. 5)”

The concept of the gift economy is rooted in the practices of social media. The more you give away (free content/advice) the more “social capital” you gain in return. She makes a valid point that the two economies are very valid in their own respective corners and they also work together.

“We are dealing with two parallel but valid economies here. Market capital now flows from having high social capital.” (pg. 6)

Of course this is not a new concept. Business has been built by networking and the relationships created between individuals. The idea that high social capital can make way for a currency exchange has been rooted in business since the inception of marketing.

The next couple of years are going to bring an onslaught of social marketing that is going to be focused primarily on gaining social capital. It has already begun.

Do you know your worth in social capital?

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