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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Steffan Antonas
Kyle – if you enjoyed The Whuffie Factor, you'll definitely enjoy Tara live on video. You can find her presentation "The Whuffie Factor: The 5 Keys for Maxing Social Capital and Winning with Online Communities" at the web address included in the Website link. Her presentation was top notch – super engaging and energetic. Good stuff.
Reasonable Robinson
If the Social Media model is philosophically 'different' i.e. not a market economy, then perhaps a complete severence with the language and notions of 'business economics' should be attempted. Calling it the 'gift "economy" and talking about social "capital" implies that really we are still locked into the psychic prison of marketings 'micro economic hertiage' (thankyou Harvard Business School) and that we can't get out of the prison because despite all the talk of social affairs, conversations, networking and the like it can never wash in a world of commercial ROI ! Therefore the 'gift economy' is a myth because it has to be given an attribute called 'Capital' to give it some semblance of commercial substance and credibility with those who remain sceptical of the 'value' of Social Media for business i.e. I'll give it some labels that sound familiar so that it doesn't put you right off the idea and you kick me out of the office. This is ingratiating, servile and implies a lack of substantive belief in the very principles of Social Media that are being claimed.
The problem is bound up with dominant management logic business. This 'management philosophy' puts every effort into explaining business as an 'objective non-emotive rational science' In this world 'people' are conveniently 'airbrushed' out of the picture (check out any standard marketing management mega text Kotler et al) Often adherents of this philosophy don't even know they have it and just 'take it for granted' that this is how we talk about business.
Social Media should stop apologising for being about socially constructed human affairs and trying to ingratiate itself with 'blue suit sanitised' management. The value of Social Media should be expressed in unashamedly social terms, if it is to stand any chance of being understood as radical and different. Social Media advocates should not be 'ashamed' that they can't prove a financial ROI they should be disturbing the 'rationalists' by pointing out that business is and always has been a social endevour not and exculsively economic endevour.
Reputations, ideas, perceptions, attitudes, beliefs, excitement, boredom, attraction, passion, loyalty, trust all matter don't they Mr Suit?
The value and purpose of Social Media is 'relational and emotional'…end of. If the guy that holds the purse strings doesn't agree then perhaps he will agree that he should stop going on golf days, meeting clients for lunch, picking up the phone, reading e-mails and attending meetings.
Whuffaoke = Social Capital Meets Karaoke – The Karaoke Road Trip Stops in Pittsburgh | IheartPGH.com
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John Steinsvold
An Alternative to Capitalism?
The following link, takes you to a "utopian" article, entitled "Home of the Brave?" which I wrote and appeared in the Athenaeum Library of Philosophy:
http://evans-experientialism.freewebspace.com/ste…
John Steinsvold