Steemit’s New Business Model Shows How Compensation by Micro Contributions Works

From Cointelegraph by S. Matthew English

When you post something on a popular microblogging service and it generates a high degree of positive feedback by some metric, for instance “likes,” you have just created value for that company.

When you issue a query to an Internet search engine and click through to a result, you have just created value for that company.

When you post a photo of your handsome face to a certain service, and many people share it across the Web... you probably get the picture.

#$%! you, pay me

This altruistic contribution to the bottom line of Silicon Valley-based behemoth corporations is at the crux of how an organization, with a scant few bean bag chair laden offices, can create value for millions upon millions of customers.

British evolutionary biologist Richard Dawkins argues that at the core of seemingly altruistic exchanges is often a latent horse-trading process.

For instance, your parents take care of you because you share half of their genes and you are hopefully (the fact that you’re reading this article greatly increases the probability that you fall into this category) an efficient and natural gene propagation mechanism. Then why do so many people while away their days improving the product offering of faceless social media companies?

The reason is that they do in fact derive some value from this interaction in the form of recognition from their network connections. Some people thrive on this attention. For better or worse I personally know a few of them.

But is this remuneration sufficient? Could we create a better model for such services?

...

Full article: https://cointelegraph.com/news/steemits-new-business-model-shows-how-compensation-by-micro-contributions-works

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