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December 28, 2021 - April 16, 2022
Even with all the resources in the world, companies like Google, Apple, and Facebook can’t meet the cost of user support alone. Instead, they rely on public support forums. Poorly implemented support forums can feel like ghost towns, where users shout questions into the void in hopes that someone is paying attention. But when enough people ask and answer questions, users are often in a better position to help one another than an official support team is. In open source, maintainers frequently push user support questions onto forums like Stack Overflow or group chats like Discord or Slack,
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Ben Thompson, suggesting that subscriptions could be the future of local news, defines subscriptions as such: First, it’s not a donation: it is asking a customer to pay money for a product. What, then, is the product? It is not, in fact, any one article (a point that is missed by the misguided focus on micro-transactions). Rather, a subscriber is paying for the regular delivery of well-defined value. Each of those words is meaningful: Paying: A subscription is an ongoing commitment to the production of content, not a one-off payment for one piece of content that catches the eye. Regular
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The academic system provides us with a blueprint of how a closed reputation economy for software might work. Researchers write and publish papers, which garner citations from other researchers, which theoretically earn the authors more negotiating power, and, eventually, tenure. But academia fails to create commensurate rewards for open source developers. Fernando Pérez is the author of Jupyter, a set of open source tools and services for interactive computing, used by researchers and companies around the world. It is arguably one of the most impactful pieces of scientific software in
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In “1,000 True Fans,” a blog post first published back in 2008 and now part of internet canon, the writer Kevin Kelly points to the value of a small, avid audience. In an updated version of this post, he writes, To be a successful creator you don’t need millions. You don’t need millions of dollars or millions of customers, millions of clients or millions of fans. To make a living as a craftsperson, photographer, musician, designer, author, animator, app maker, entrepreneur, or inventor you need only thousands of true fans. A true fan is defined as a fan that will buy anything you produce.327
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Bounties can be effective when the tasks are vetted by maintainers themselves, and when they fund well-scoped, finite tasks that are specialized or otherwise difficult to attract talent for, such as design work or database migration. For example, security bounties tend to work well because they tap into a wider pool of developers with specialized skills, encouraging them to tackle a one-off task that a project’s maintainers might not otherwise accomplish on their own. For security-related issues, it’s actually better when the participating developers aren’t already familiar with the codebase,
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The history of software gives us insight into how our attitudes toward content are changing. In the twentieth century, code was bundled into physical formats—a book, a floppy disk, a CD—which made it easier to price and sell. As code became liberated from these formats, and eventually distributed under open source licenses, it became harder to directly charge for. With millions of lines of code freely available today, the focus has shifted from what developers make to who they are.
When people talk about the “attention economy,” they’re usually referring to the consumer’s limited attention, as when multiple apps compete for a user’s time. But a producer’s limited attention is just as important to consider. As audience engagement grows, more consumers appropriate attention from creators. So it’s critical to find ways to manage this demand, especially extractive demand, which includes comments, reactions, direct messages, and other requests for interaction. A tragedy of the commons occurs not from consumers over-appropriating the content itself, but from consumers
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Our social platforms were built for distributed, small-scale, many-to-many use cases: the quaint social world of yesteryear. They were modeled after internet forums, chat groups, and mailing lists, because these were the only blueprints that we had for our online social infrastructure. As more people flocked to these platforms, we saw a few bridges collapse, because, it turns out, we had no idea how to build bridges for today’s world. The aftermath of the 2016 United States presidential election saw Facebook wholly unprepared for its new role as a steward of civil society. But platforms are
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The first wave of monetization was about making meaning of the big. Display advertising, for example, operates as a function of viewership. Pricing is typically based on CPM, or cost per thousand impressions, and CPC, or cost per click, both of which require a lot of views to make these numbers meaningful. These days, as consumers are faced with near-infinite options, making money as a creator is about making meaning of the small again: Kevin Kelly’s “1,000 true fans,” finally come to pass. We’re seeing renewed interest in subscription models, sponsorships, and merchandise, all of which
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As for subscriptions, paywalls might seem like a way to monetize content, but, really, what creators are monetizing is their community, whether by offering a closer connection to the creator, like-minded people to talk to, or a safe haven from extractive contributors. A paywall is more like the ticket kiosk at a theme park than a price tag on a car. Most comments aren’t useful, so charging readers to leave a comment helps ensure that participants have meaningful skin in the game. Creators charge money in order to make social interactions meaningful again.
Putting all content behind a paywall isn’t likely to work well for creators or publishers, with the exception of a few heavy hitters (say, The New York Times). Similarly, micropayments—where consumers pay small sums for a specific piece of content, such as paying to unlock a specific article—don’t usually add up to much either (again, unless you’re The New York Times, and can play upon a reader’s fear of missing out). Micropayments make the transaction about content, rather than about creators, but because there is so much freely available, highly substitutable content they create decision
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Subscription models can operate like a freemium model, but they get even more interesting as a two-sided market. In a freemium model, a creator gives away some of their content for free, but restricts other content to those with paid subscriptions. The free content helps creators grow their reputation via public network effects. In a two-sided market, paying subscribers subsidize all of the content for nonpaying readers, under the assumption that creators aren’t actually selling content but a sense of membership and identity. Instead of charging, say, all 100,000 readers ten cents to read an
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Finally, the news industry is a useful case study to demonstrate how different funding models might apply to different types of content creators. Like “open source,” “news” doesn’t refer to just one type of content. Also like open source, there are a few big newspapers (The Washington Post, The Wall Street Journal, USA Today, and others), which don’t fully capture the experience of the rest of the news industry, much like Linux doesn’t reflect the experience of most open source projects. With the continued unbundling of newspapers, we’ll likely see different models that work for different
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Social media is arguably supplanting the need for “breaking news” reporters. Like casual contributors to an open source project, eyewitnesses post about a breaking news event because they are intrinsically motivated to do so. The fact that local news outlets frequently appear in eyewitnesses’ comments, asking them for the right to use their images, tells us that average citizens are becoming a better breaking news source for major media outlets, rather than the other way around. Breaking news is the equivalent of casual contributions in open source: those who are closest to the problem have an
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For news reporting that focuses on a specific vertical, we’ll see a shift that looks like the shift from “funding projects” to “funding people,” which we explored in Chapter 5. As media companies shift toward “atomized” creators, journalists will find it easier to independently monetize their own reputations, much like any other content creator. Readers will pay for a curated, high-quality take on their interests, as well as, sometimes, a sense of community with other like-minded readers.
Overall, I’d expect to see in the news industry something similar to what happened in open source: a “dumbbell”-shaped distribution of contributors. On one end are purely casual contributors (breaking news, casual punditry, and commentary on the news), who post on social media because it’s low-effort with the potential for a bit of upside, and no expectation of maintenance, funding, or having to make ongoing contributions. On the other end are the maintainers (news columns, investigative journalism, and features): those with in-depth knowledge of their topic, who make highly non-fungible
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Transitions are hard, but when it comes to making money as a creator online, I feel more optimistic about these opportunities than ever. We’re moving toward a future where rewards are heavily influenced by the quality of one’s audience more than its size. This affords creators an enormous degree of freedom and helps perpetuate the renaissance of ideas that is already well underway. We don’t have all the answers yet, but I’m hoping this book helps point us toward the right questions.

