As someone who has taken a deep dive in several social networks (he joined Twitter in 2007) and observes both the gaming and currency aspects of them, David Armano believes these dynamics will influence the business world as it becomes more connected. In his blog David Armano writes:
Empire Avenue highlights a pervasive trend that will likely influence the business world in the long term. Like many other platforms, including popular networks such as Facebook, Empire Avenue caters to human psychological factors and uses game techniques to reward participation and encourage a participant to willingly “give up” what is truly valuable in business–data. So why would someone want to give up data? Facebook knows the answer to this question: social currency.
Social currency is shared information that encourages further social encounters. It’s not a new concept, but the social web increases its prevalence. In the web-based collaboration software platform called Rypple, a simple act of thanking someone on a team and using a badge as a way to show your gratitude is a form of social currency. A platform called Badgeville promises to add virtual rewards to your digital media property through leaderboards and virtual “badges” that act as reinforcements to reward certain behaviors and encourage others. As someone who has taken a deep dive in several social networks (I joined Twitter in 2007) and observes both the gaming and currency aspects of them, I do believe these dynamics will influence the business world as it becomes more connected. In this “social reward” economy, there are a few things you may want to consider.