Social Cash Keynote

photo credit ﬂickr.com/johnnyvulkan Social + Cash = Good A few big thoughts from Chris Heuer, Founder Social Media Club

WTP? Whats The Promise? photo by Chris Heuer

The Promise “at the Social Cash conference we'll do our best to give you the inspirations, ideas and knowledge of how to turn your social media photo by Chris Heuer investment into a great return on investment”

but I disagree, we have already been seeing ROI, but it often isn’t focused on the business bottom line

Has Social Media Been Wasted Effort? photo by Chris Heuer • Or has your focus been misplaced? • Or have you already seen the beneﬁts?

I propose we simply need to move the lens of focus • It’s time for us to change our focus from the promise of social media, to delivering on that promise • Which means its time for managers to give the social leaders the tools and resources they need... or get photo by Chris Heuer leaders who they can trust to deliver.

What’s the ROI on:

What’s the ROI on: • Lunch with a journalist?

What’s the ROI on: • Lunch with a journalist? • An article in the newspaper?

What’s the ROI on: • Lunch with a journalist? • An article in the newspaper? • A good review of your product?

What’s the ROI on: • Lunch with a journalist? • An article in the newspaper? • A good review of your product? • Attending a conference?

What’s the ROI on: • Lunch with a journalist? • An article in the newspaper? • A good review of your product? • Attending a conference? • Joining a club or association?

What’s the ROI on: • Lunch with a journalist? • An article in the newspaper? • A good review of your product? • Attending a conference? • Joining a club or association? • Steve Jobs responding to a single user?

What’s the ROI on:

What’s the ROI on: • Listening?

What’s the ROI on: • Listening? • Converting an upset customer to a happy one?

What’s the ROI on: • Listening? • Converting an upset customer to a happy one? • Being a part of an online community?

What’s the ROI on: • Listening? • Converting an upset customer to a happy one? • Being a part of an online community? • Educating your market?

What’s the ROI on: • Listening? • Converting an upset customer to a happy one? • Being a part of an online community? • Educating your market? • Connecting customers to each other?

What’s the ROI on: • Listening? • Converting an upset customer to a happy one? • Being a part of an online community? • Educating your market? • Connecting customers to each other? • Allowing your employees to blog?

“How Twitter and Facebook Make Us More Productive” “People are more successful if we force them to move away from a problem or distract them temporarily,” observe the authors of Creativity and the Mind, a landmark text in the psychology and neuroscience of creativity. They found that regular breaks enhance problem-solving skills signiﬁcantly, in part by making it easier for workers to sift through their memories in search of relevant clues. http://www.wired.com/magazine/2010/02/st_essay_distraction/

these things aren’t quantiﬁed, they are qualiﬁed.

notice a pattern?

but, we are here to talk about the problem social media has with money, so lets look closer

Money is a stored form of energy. so lets do a little physics lesson before proceeding

1st Law of Thermodynamics The law of conservation of energy is an empirical law of physics. It states that the total amount of energy in an isolated system remains constant over time (is said to be conserved over time). A consequence of this law is that energy can neither be created nor destroyed, it can only be transformed from one state to another. The only thing that can happen to energy in a closed system is that it can change form, for instance chemical energy can become kinetic energy. Albert Einstein's theory of relativity shows that energy and mass are the same thing, and that neither one appears without the other. Thus in closed systems, both mass and energy are conserved separately, just as was understood in pre-relativistic physics. The new feature of relativistic physics is that "matter" particles (such as those constituting atoms) could be converted to non-matter forms of energy, such as light; or kinetic and potential energy (example: heat). However, this conversion does not affect the total mass of systems, since the latter forms of non- matter energy still retain their mass through any such conversion.[1] Today, conservation of “energy” refers to the conservation of the total system energy over time. This energy includes the energy associated with the rest mass of particles and all other forms of energy in the system. In addition the invariant mass of systems of particles (the mass of the system as seen in its center of mass inertial frame, such as the frame in which it would need to be weighed), is also conserved over time for any single observer, and (unlike the total energy) is the same value for all observers. Therefore, in an isolated system, although matter (particles with rest mass) and "pure energy" (heat and light) can be converted to one another, both the total amount of energy and the total amount of mass of such systems remain constant over time, as seen by any single observer. If energy in any form is allowed to escape such systems (see binding energy) the mass of the system will decrease in correspondence with the loss. A consequence of the law of energy conservation is that perpetual motion machines can only work perpetually if they deliver no energy to their surroundings. If such machines produce more energy than is put into them, they must lose mass and thus eventually disappear over perpetual time, and are therefore not possible. http://en.wikipedia.org/wiki/Conservation_of_energy

so why do we need to talk about social cash?

It’s Chris Anderson’s Fault or its the fault of those who misinterpret his point

Free is not Free

Free is not Free • It costs time

Free is not Free • It costs time • It costs money

Free is not Free • It costs time • It costs money • It costs us attention

Free is not Free • It costs time • It costs money • It costs us attention • Or rather it costs energy

Free is not Free • It costs time • It costs money • It costs us attention • Or rather it costs energy • And as we just learned, only the least efﬁcient systems lose energy, which is what happens when everything is free!

Advertising Creates the Perception of Free photo by ﬂickr.com/JillClardy

Advertising Creates the Perception of Free • But you are really exchanging your photo by ﬂickr.com/JillClardy attention for money paid by a company to a publisher

Advertising Creates the Perception of Free • But you are really exchanging your photo by ﬂickr.com/JillClardy attention for money paid by a company to a publisher • Who is exchanging their money for an opportunity that you may spend money with them

Advertising Creates the Perception of Free • But you are really exchanging your photo by ﬂickr.com/JillClardy attention for money paid by a company to a publisher • Who is exchanging their money for an opportunity that you may spend money with them • In the original newspaper model, advertising merely subsidized the costs, but did not make it free

Which is why so many think media is free or should be photo by Just.LUC ﬂickr.com/9619972@N08

Which is why so many think media is free or should be • Media is knowledge photo by Just.LUC ﬂickr.com/9619972@N08

Which is why so many think media is free or should be • Media is knowledge • Knowledge is free (or photo by Just.LUC ﬂickr.com/9619972@N08 should be)

Which is why so many think media is free or should be • Media is knowledge • Knowledge is free (or photo by Just.LUC ﬂickr.com/9619972@N08 should be) • But it can’t be given away freely

Which is why so many think media is free or should be • Media is knowledge • Knowledge is free (or photo by Just.LUC ﬂickr.com/9619972@N08 should be) • But it can’t be given away freely • Everything needs a return, our education system is premised on this, that those who receive a public education give back to society in some way

How did we get here?

How did we get here? • Money is the most taboo topic

How did we get here? • Money is the most taboo topic • More people want to live from their heart instead of their wallet

How did we get here? • Money is the most taboo topic • More people want to live from their heart instead of their wallet • We are rebelling against those who would take exploitative proﬁts, and like the hippies before us, are ﬁghting the entrenched systems (to our own detriment)

It’s a Perfect Storm • The current capitalist system is inefficient to the benefit of the most powerful, the most aggressive, the most socially ill adapted and the most entrenched oligarchs • Most humans, with the exception of those mentioned above, want the system to change, which is why we are here, which is why so many think social media is free photo by flickr.com/ davemorris

the industrial age separated managers from the people they mange • Managers have confused the numbers in their spreadsheets with the shadows on Plato’s cave wall

ok, I will move past the social problem and get back to business

We all seek: • Return on Time • Return on Investment • Return on Attention which is essentially the same thing something received for something given

which is why its fair for management to ask what’s the ROI on Social Media?

it is your job to prove that the time invested is contributing to the bottom line and not a waste

photo credit ﬂickr.com/ISphoto Time is our most valuable resource

Time can not be captured, but the output of time can be captured as objects, memories or money.

if it can’t be measured it can’t be managed

despite everything I said before, we still live in a world that is run by managers, this is our reality and its ok.

Money is but one organizational beneﬁt You can also receive: •awareness •opportunity •experiences •goods/services •self esteem •respect •love •social good •future promises •savings •positive sentiment •trust flow photo credit ﬂickr.com/johnnyvulkan •page rank •discoverability •future serendipity •purchase consideration at POS •Customer Support from customers •and so much more

problem: man can not live on whufﬁe alone

problem: the power of language

problem: social media experts

opportunity: success doesn't require accolades

opportunity: serve the market

IMPORTANT TO UNDERSTAND

The Because Effect “The because effect is a kind of jujitsu. While other people look to make money with something, you're finding ways of making money because of something.” QT- Doc Searls

Price is Relative to Perception • Of course this has always been true, but... • The more you like someone, the more you are likely to be willing to pay, or the less you are likely to ask if you are the seller. This is a problem and an opportunity. “the context for finding prices is both conversation and relationship. In many cases, relationship is the primary concern, not price. The bottom line is not everything.” QT - Doc Searls http://www.linuxjournal.com/content/building-relationship-economy

A New Way • We shouldn’t forget the past or throw out the old for the new, we need to harvest the best ideas and destroy the ones that no longer serve us. • Our collective future is dependent on us discovering a new model for conscious capitalism in the wisdom economy http://consciouscapitalism.com/

A New Way EVERYONE NEEDS TO GET PAID

A NEW SUCCESS STORY

#TheSocialStrip

#TheSocialStrip • Los Angeles Sunset Strip has become a vibrant neighborhood again • Competitors are working together online and off • The Viper Room has cut advertising budget in half • All involved are not only listening, but responding to what they hear

CONCLUSION

social business mastery is leadership, not management

business in balance, as energy in physics, requires a balance of what you give and what you take

exploitative proﬁts are no longer acceptable

the karmic cookie jar is open to everyone

photo credit http://ﬂickr.com/esti Don’t be a cookie monster. #shareordie

@ChrisHeuer 001.408.834.0884 chris@socialmediaclub.org http://socialmediaclub.org/

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Social Cash Keynote

by Chris Heuer on Mar 25, 2010

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Social Cash Keynote — Presentation Transcript