I’m somewhat embarrassed to admit that lately, when someone asks me for advice on building up their community-centric media project, my answer often includes the following question: “What are you doing to drive financial value back to your users?” I say embarrassed because this question invokes tragicomic memories of failed dot-com startups; you know, the websites that paid you money for websurfing (“make pennies per day!”) Or, for that matter, more recent sites that prove the classic pyramid scheme is alive and well.
Past failures and frauds aside, there’s clear evidence that creating economic opportunities for users can result in big bucks for businesses. This has long been obvious outside the entertainment industry — eBay, Google (adSense), and Amazon (Marketplace) all make a ton of money by riding the efforts of users. But in entertainment, many people remain fundamentally opposed to sharing the wealth. Why bother, they ask, when users aren’t demanding it? (see MySpace, YouTube, etc.)
