Wednesday, December 20, 2006

Wikis: Where is the money?

Searching for material on business models for wiks I found only few useful sources:

"New web sites seeking profit in wiki model" in the New York Times of Sept 4, 2006

"Compose yourself: journalism too is becoming interactive, and maybe better" in The Economist of April 20th 2006

"The gory antigora: Illusions of capitalism and computers" by Jaron Lanier, CATO Unbound, January 6th 2006

The NYT points at two characteristics of wiki business models:
(a) "If wikis become a big business, some of that idealism may fade ? and consumers may begin to resent contributing to the sites free. So far, though, the sites are growing fast, thanks to dedicated volunteers."
(b) "But Ramit Sethi, co-founder of PBwiki, another make-your-own wiki site, said that it was still too early to determine what model would turn wikis into money-makers. ?Nobody has found the de facto business model for wikis,? said ?It?s kind of the Wild West.?

The article in The Economist is not exactly on wiki but the tip-jar idea, invented by Ohmy News in South Korea, may be applicable to wikis too:
"The site [Ohmy News] has a ?tip-jar? system that invites readers to reward good work with small donations. All they have to do is click a little tip-jar button to have their mobile-phone or credit-card account debited. One particularly good article produced the equivalent of $30,000 in just five days." {I could not find this feature at the Ohmy News International site}

According to Lanier: "An Antigora is a privately owned digital meeting arena made rich by unpaid or marginally paid labor provided by people who crowd its periphery."
Lanier insists that the web is at its core a cultural and not a technical artifact: "... the Net only exists as a cultural phenomenon, however much it might be veiled by an illusion that it is primarily industrial or technical. If it were truly industrial, it would be impossible, because it would be too expensive to pay all the people who maintain it."

RAEM

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