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So here I am on a street in Saverne, France, getting on the Net over a rare open wi-fi hot spot. I was going to tweet something about it, but Twitter is down. So here we are.

There’s one Net, one Web and one Twitter. Many paths through the formers and but one through the latter. Note the preposition. I said through. Twitter’s API allows much, but you still have to go through one company’s proprietary system. Not so with the Net, the Web — or blogging. As with the Net and the Web, blogging is NEA. Nobody owns it, Everybody can use (or do) it, and Anybody can improve it.

Somebody owns Twitter, and only they can improve it.

Twitter is a brilliant creation that has done much to expand uses of the Net, the Web, SMS and other good stuff. But we need what it does to be Net-native and it ain’t yet.

Okay, now I’ll go back off-grid to explore France. Au revoir … from my phone to your whatever.

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First, read Dave‘s The Mother of all Business Models. The money grafs:

Want to get a message to Dave while he’s on the BART riding under SF? $5. Want to get a message to him while he’s walking the tradeshow at CES? That costs more.

If you’re important enough you shouldn’t even pay to use the mobile device. They’re going to make so much money from your attention. If you’re really important, thinking Warren Buffet, Bill Gates, Mike Arrington, they should pay you — a LOT — to use their device. Wow.

That got me excited. That’s what they have to be thinking at Google. And why not Twitter. Trying to think of a title for this post, I came up with The Mother of All Business Models. This is as far as I can see. A new economy. Nobodies pay, but important people are paid to use your brand cell phone/mobile device. I’m sure that’s the future. Might be horrible but we’re already almost there.

This is great stuff: a whole new frame for the sell side.

Now let’s look at the buy side, and how to keep the sellers from being horrible moms. What do we want there? Or what should we want there, if we knew we had the power, independent of advertisers and their media? I mean native power here: power that each of us has — not by grace of some company or government agency, and not limited to a company’s “platform”, which is almost always the floor of a silo or the lawn of a walled garden (and worth less or nothing outside of it).

We already have some of that power, thanks to protocols, formats and code that (essentially) nobody owns, everybody can use and anybody can improve. One of the most widespread of those, thanks to Dave, is RSS — Really Simple Syndication. Look up RSS on Google. You get 3,210,000,000 results, as of today. Much of that huge number owes to RSS’s nature as essential builing material for the Web that anybody can use, easily.

RSS is easy to make yours, personally, as your tool. Thanks to RSS (atop the Web’s and the Net’s other supportive standards, formats and protocols) anybody can produce, edit, update and syndicate pretty much whatever they like. You don’t have to go to Google or Twitter or Facebook. That independence is key, and has been there from the start, as a founding premise.

Now, what else can we create, to help assert our sides of commercial interactions and relationships — which is the central concern of the VRM (Vendor Relationship Management) community? In the Markets Are Relationships chapter of the 10th Anniversary edition of The Cluetrain Manifesto, I wrote this about the purposes of VRM efforts:

  1. Provide tools for individuals to manage relationships with organizations. These tools are personal. That is, they belong to the individual in the sense that they are under the individual’s control. They can also be social, in the sense that they can connect with others and support group formation and action. But they need to be personal first.
  2. Make individuals the collection centers for their own data, so that transaction histories, health records, membership details, service contracts, and other forms of personal data are no longer scattered throughout a forest of silos.
  3. Give individuals the ability to share data selectively, without disclosing more personal information than the individual allows.
  4. Give individuals the ability to control how their data is used by others, and for how long. At the individual’s discretion, this may include agreements requiring others to delete the individual’s data when the relationship ends.
  5. Give individuals the ability to assert their own terms of service, reducing or eliminating the need for organization-written terms of service that nobody reads and everybody has to “accept” anyway.
  6. Give individuals means for expressing demand in the open market, outside any organizational silo, without disclosing any unnecessary personal information.
  7. Make individuals platforms for business by opening the market to many kinds of third party services that serve buyers as well as sellers.
  8. Base relationship-managing tools on open standards, open APIs (application program interfaces), and open code. This will support a rising tide of activity that will lift an infinite variety of business boats, plus other social goods.
  9. The Intention Economy.

All these will also give rise to:

The latter is the title of the following section of the chapter, where I  explain that advertising is a bubble, and “so is the rest of the ‘attention economy’ that includes promotion, public relations, direct marketing, and other ways of pushing messages through media.” I then explain,

The attention economy will crash for three reasons. First, it has always been detached from the larger economy where actual goods and services are sold to actual customers. Second, it has always been inefficient and wasteful, flaws that could be rationalized only by the absence of anything better. Third, a better system will come along in which demand drives supply at least as well as supply drives demand. In other words, when the “intention economy” outperforms the attention economy.

Some context:

The attention economy will not go away. There will still be a need for vendors to promote their offerings. But that promotion will have a new context: the ability of customers to communicate what they need and want—and to maintain or terminate relationships. Thus the R in CRM will cease to be a euphemism. This will happen when we have standard protocols for all three forms of market activity: transaction, conversation, and relationship.

Transaction we already have. Conversation we are only beginning to develop. (Email, text messaging, and other standard and open protocols help here, but they are still just early steps—even in in 2009, ten years after we said “markets are conversations” in The Cluetrain Manifesto.) Relationship is the wild frontier. Closed “social” environments like MySpace and Facebook are good places to experiment with some of what we’ll need, but as of today they’re still silos. Think of them as AOL 2.0.

Now, what do we need to create The Intention Economy? (That link goes to a piece by that name written almost four years ago.) What’s already there, like RSS and its relatives, that we can put to use? What new protocols, formats, tools and code do we need to create?

Improving selling is a good thing. Improving buying is a better thing. And improving how buyers and sellers relate is better than both. Those last two are what VRM is about. (And the last one is what CRM has always been about, though it hasn’t had any reciprocating system on the buy side, which is what VRM will provide.)

If you want to see some of what we’re up to, or to contribute to it, here’s the wiki. And here’s the list.

Meanwhile, I’m working on a book titled The Intention Economy: What Happens When Customers Get Real Power. If you’re interested in pointing me to helpful scholorship, research and stories for the book, feel free to weigh in with those too.

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Forget financial markets for a minute, and think about the directions money moves in retail markets. While much of it moves up and down the supply chains, the first source is customers. The money that matters most is what customers spend on goods and services.

Now here’s the question. Where is there more money to be made — in helping supply find demand or in helping demand find supply? Substitute “drive” for “find” and you come to the same place, for the same reason: customers are the ones spending the money.

For the life of the commercial Web, most of those looking to make money there have looked to make it the former way: by helping supply find or drive demand. That’s what marketing has always been about, and advertising in particular. Advertising, last I looked, was about a $trillion business. Now ask yourself: Wouldn’t there be more money to be made in helping the demand side find and drive supply?

Simply put, that’s what VRM is about. It’s also what Cluetrain was about ten years ago. It wasn’t about better ways for the supply side to make money. It wasn’t about doing better marketing. It was about giving full respect to the human beings from whom the Web’s and the Net’s biggest values derive. When Cluetrain (actually Chris Locke) said “we are not seats or eyeballs or end users or consumers. we are human beings and our reach exceeds your grasp. deal with it.“, it wasn’t saying “Here’s how you market to us.” It was saying “Our new power to deal in this new marketplace exceeds your old powers to drive, lock in, or otherwise control us.” When Cluetrain said “The sky is open to the stars”, it wasn’t issuing utopian palaver. It was speaking of a marketplace of buyers and sellers whose choices were wide open on both sides. [Later... Chris Locke, who wrote that line (and those that followed), offers a correction (and expansion) below.]

On Cluetrain’s 10th anniversary, we have hardly begun to explore the possibilities of truly free and open markets on the Internet. They are still inevitable, because supporting those markets is intrinsic to the Net’s essentially generative design. Lock down users, or lock one in and others out, and you compromise the wealth the Net can create for you. Simple as that.

And that wealth starts with customers.

This is also what How Facebook Could Create a Revolution, Do Good, and Make Billions, by Bernard Lunn in ReadWriteWeb, is about.

I just wrote a brief response in Gain of Facebook, on the ProjectVRM blog.

No time for more. Not because it’s the Fourth of July, but because I’m in a connectivity hole (with latencies and packet losses that start at 1+ second and 15% packet losses and go up from there), but because I’m at my daughter’s wedding, and I need to get ready. Cheers.

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Video Is Dominating Internet Traffic, Pushing Prices Up says the headline of a piece by Saul Hansell in the New York Times. Its first three subheads say, File sharing has been usurped by legitimate video services, The very heaviest users drive up network costs and Unlimited data plans may have a limited life.

This is the wrong framing, by the wrong mentality. We’re not far from the day when most of us are “heavy users”, and when voice telephony (which has a relatively low data rate) is just one among countless data applications. It’s already that on laptops and many handheld devices (including mobiles using the likes of Fring).

In time the bulk of radio and television listening and viewing will move from analog to digital, and from broadcast bands to broadband. Some will be live, some will be stored and forwarded. Much will be mashed. Upstream needs will match downstream needs, especially for the millions who now producing as well as consuming video. Some top-down few-to-many asymmetries will persist, but many more any-to-any uses will arise, requiring symmetrical connectivity.

There are services besides raw bandwidth that can help with this — services that assist in mash-ups, that work with customers’ social graphs, that provide actual professional services (instead of higher-priced tiers that do nothing more than punish customers for saying they’re a business … a shakedown racket that should have died along with Ma Bell). There should emerge services that answer to customer-driven choices and preferences, that help demand drive supply, that support service needs in marketplaces opened by easy connectivity and fat capacity.

Carriers need to recognize that in the long run they are privileged to be in the Internet business, rather than cursed by something that undermines their old business models. They need to break out of their “triple-play” mentality and realize that on the Net there are an infinite number of “plays’, especially if those aren’t excluded by connections optimized for television or telephony, or subordinated to those other purposes.

Three things need to happen here.

  1. First, the carriers need to realize that they are Internet companies first, and phone or cable companies second — or will be, soon enough
  2. The carriers need to welcome and partner with independent Net-savvy developers who can help them think outside their own boxes, yet make the most of their privileged positions. We’ve all known there are benefits to incumbency besides charging rents. Now it’s time to find those and start making hay. (Oh, and lining up with Hollywood for lots of subscription distro deals is neither creative nor interesting.)
  3. The Net needs to be moved outside the framework of telecom regulation, to be freed from what Bob Frankston calls The Regulatorium. The Net was unimaginable to the 1934 Telecom act, and barely grokked by the 1996 update of that act. Questions about whether the Net is an “information service” or a “telecommunication service” are wacky, retro and not helpful, unless it’s to liberate it from the telecom trap.

But they shouldn’t wait for #3.

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