Fred Wilson wrote this week about the need for an open social network, one where the users have complete control on their information.
Sean Ammirati wrote about the possible creation of an open ad network. An ad network where publishers get the all cake of the advertising budget (instead of the Google and rest of the ad networks way where they take a big cut of the advertising money).
It all brings me back to an old vision I had when I started my company NuConomy.
Back in the early days of 2006 when I just started to roll the idea in my head I thought about what was back then an absurd idea - do rev share with the end users. I thought about businesses like YouTube where millions of people are producing and uploading every day (basically doing all the work) and in the end Google (back then it was still YouTube) takes all the money.
It sounded very unfair in my head. I had a vision of a web where the people who produce the content gets not just the glory but also the money. I decided to develop a system that can measure the end user contribution to the business in order to decide how big his cut of the cake should be (I got to admit that today running incentives programs is just a feature in our system. The platform itself changed its focus to next gen analytics).
In my head I even envisioned totally new structure of business. Something I called "The Open Business" (taken from the concept of open source).
Imagine a business that his owned by its employees and ran completely by its employees. Everyone share of the business is decided by their direct contribution to the business.
Lets take for example the idea for an open social network.
You take an open source platform and start a new social network with a business model around advertising. Each user who joins the network gets a status of a virtual employee of the network and a shareholder of the company. How many shares does he gets? Depends on his exact contribution to the business.
Users that has more friends, upload and write more high rated content, invite more friends and drive more page views or clicks on ads gets bigger cut of the revenues every month.
It's that simple. In the open business the users are the shareholders. They are the employees. They not just own their information, they own the business itself.
I also gave a lot of thoughts about how this concept of open business can help drive the open source community.
Think of an ad based open source project, where all the developers that contributed to it gets a cut of its revenues. How you decide how much each developer will get? By their exact contribution the project. You can measure stuff like number of created/solved bugs, number of developed features, rating of features, spent hours, etc.
I know that most people who participate in open source are doing this for the community and not for profit, but can the open business be an open enough model that the community can actually embrace?
