An in-depth analysis of social media platforms through the lens of social capital theory and why we should think of them as “Status as a Service” businesses
Editor's Note 1: I have no editor. — Editor's Note 2: I would like to assure new subscribers to this blog that most my posts are not as long as this one. Tweets: @eugenewei , @ingridlunden , @sriramk , @dkthomp , @naval , @carnage4life , @asemota , @kevinakwok , @carnage4life , @carnage4life , and @besvinick Tweets: Eugene Wei / @eugenewei : We would have a better understanding of many social networks if we regarded them as Status as a Service (SaaS) businesses. Not all network effects work the same way. Status is a powerful motivator but inherently volatile. http://www.eugenewei.com/... Ingrid / @ingridlunden : Interesting article that covers a lot of things that you might have thought about how social media works but with much more detail. It's long but worth reading, even if it means a slight delay on posting your latest story on Snap. http://twitter.com/... Sriram Krishnan / @sriramk : Grab a cup of coffee to read what is probably one of the best (and longest!) articulated thesis on social media by @eugenewei . I'm going to post screenshots of some pieces that really caught my eye. http://www.eugenewei.com/... Derek Thompson / @dkthomp : “Many of the largest tech companies are status as a service businesses [and] people are starting to talk more and more about the soul-withering effects of playing an always-on status game through the social apps on their always connected phones.” http://www.eugenewei.com/... @naval : Must-read free e-book from @eugenewei on how to analyze social media businesses. http://twitter.com/... Dare Obasanjo / @carnage4life : Another spot on observation is that social apps are like cryptocurrencies in that you need to show some proof of work to earn social status (tweets, snaps, etc) and it gets harder over time as more people show up. So adding new types of proofs of work is critical to growth Victor Asemota / @asemota : “Social capital is, in many ways, a leading indicator of financial capital...Not only is it good investment or business practice, but analyzing social capital dynamics can help to explain all sorts of online behavior that would otherwise seem irrational.” http://www.eugenewei.com/... Kevin Kwok / @kevinakwok : Status as a Service I have been so excited for @eugenewei to drop this monster of a manifesto. Understanding social capital the way we do Financial capital is supremely impt. Eugene is my favorite person to discuss and learn from on it. Read this! http://www.eugenewei.com/... Dare Obasanjo / @carnage4life : There are lots of brilliant ideas in this essay by @eugenewei explaining social apps as Status as a Service • People use them as utilities AND as a way to grow social status • Young people without money/jobs can only acquire social capital this wayhttps://t.co/5rItDHx870 Dare Obasanjo / @carnage4life : New kinds of proofs of work may mean new forms of expression either features• Stories on Instagram• 280 characters on Twitter• Various FB appsOr new usage patterns • memes • joke formats on TwitterThis is critical to retain engagement but not always enough for growth Adam Besvinick / @besvinick : [Checks watch...definitely late to a dinner because I got sucked into this] Favorite / biggest takeaway so far: the need for “old money” accounts on social networks to get turned over and not coast on prior content creation, so that new entrants can emerge (a tough balancing act) http://twitter.com/...