The Interesting Economy

October 25, 2005

Like many great social software applications, Flickr began its life as something else. Flickr was built on a platform for a game called Game Neverending, which had a lot of great features including an in-game economy based on exchanging various totems that had different relative values. There was really only a barter economy, which left the "innate" value of any individual item to be pretty opaque.

Today, Flickr has interestingness, which is a measure of some combination of how many times a picture has been viewed, how many comments it has, how many times it's been tagged or marked as a favorite, and some other special sauce. I suppose revealing the exact mix would encourage even more people to game the system, but the fact that it's not disclosed has led to a number of attempts to reverse-engineer the system. I doubt any of them are/will be successful (Flickr can update/evolve fast enough to change the algorithm if they figure it out) but that's probably going to be an ongoing dialogue.

When I think of things getting gamed, I think of Clay Shirky saying "social software is stuff that gets spammed". So maybe economies are things that get gamed.

What I'm wondering is, how is Flickr's interestingness different than the economy in Game Neverending? Than Second Life? (Or in Evercrack or Neverwinter or any of the other gaming platforms.) Is interestingness its own reward? Why don't I get to level up or power up when I create something interesting?

More to the point, the in-game economies of these games translate pretty cleanly into real-world cash, with eBay amplifying the efficiency of the currency conversion. And interestingness in other online media (like blogs) is rewarded by cash in a pretty straightforward way; I can sign up for TypePad, check a box to enable text ads, and pay for my account or point the proceeds to my PayPal account when I start getting lots of visitors.

But interestingness in Flickr doesn't pay. At least not yet. Non-pro users are seeing ads around my photos, but Yahoo's not sharing the wealth with me, even though I've created a draw. Flickr's plenty open, they're doing the right thing by any measure of the web as we saw it a year ago, or two years ago. Today, though, openness around value exchange is as important as openness around data exchange.

So does that mean the right answer for cashing in on my interesting work is to ask for a penny from Yahoo? Or does it mean I should just make an automated script that grabs my interesting photos and posts them to my TypePad blog so that I can put ads on them?

12:54 AM | Tagged community, economics, flickr, social software, web 2.0, yahoo
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8 TrackBacks

Flickr Ads from Theta Blog on October 25, 2005 10:03 AM

For non-pro users (those using flickr for free) there are now ads placed around photos. Flickr was bought out by Yahoo! recently. Not that ad placement on a free service is a surprise. See Anil's post for more.... Read More

How do you feel about someone else making money off your content? from Signal vs. Noise on October 26, 2005 1:10 PM

Anil makes an interesting observation regarding Flickr, Yahoo, and your content. He uses Flickr and Yahoo as examples, but of course this relates to any community-based service build with user-generated content and supported by advertisers. But interes... Read More

Anil Dash and Caterina Fake cross-blog on Yahoo profiting from Flickr photos from Blogebrity on October 26, 2005 4:42 PM

Anil Dash asks, what does he gain from high Flickr interestingness? But interestingness in Flickr doesn't pay. At least not yet. Non-pro users are seeing ads around my photos [a commenter notes that no one sees ads around a pro... Read More

How do you feel about someone else making money off your content? from Signal vs. Noise on October 27, 2005 9:16 AM

Anil makes an interesting observation regarding Flickr, Yahoo, and your content. He uses Flickr and Yahoo as examples, but of course this relates to any community-based service build with user-generated content and supported by advertisers. But interes... Read More

Did I Get Ripped Off Because I Paid Flickr $25 for a Year? from The Teutonic Spectator on October 27, 2005 11:26 AM

There is a discussion going on on the web that instantly triggered my economist button: One blogger, Anil Dash, suggests that Flickr should pay the users whose pictures are ranked as the most interesting (”The Interesting Economy“, Oktober... Read More

xxx.flickrlicio.us/2005/10/28/2273/ from FlickrLicio.us - XXX Babes of Flickr on October 28, 2005 5:40 AM

Good morning, This is a general announcement for everyone following the current Flickr / FlickrLicio.us issue. As of 1pm EST today, FlickrLicio.us and ALL of its subdomains will be 100% ad free. Flickr inserts ads in their site for non-paying memb... Read More

Que Flickr pague por tus fotos from Denken Über on October 28, 2005 10:52 AM

Anil Dash, parte de Six Apart, acaba de postear una nota que no se si tomar como interesante, estúpida o interesada. Se puede resumir así: - Vos subís tus fotos a Flickr - Flickr pone Adsense en su site. - Sin tus fotos ellos no podrían ganar ... Read More

Are you a user or a slave? from mathewingram.com/work on November 11, 2005 11:31 AM

Robert Scoble of scobleizer.wordpress.com has an interesting post on his blog in which he tries to get at the question of Web 2.0 services whose “content,” as it were, is produced by its users — something like Flickr.com being an obv... Read More

31 Comments

Sure it could be its own reward, but perhaps the reward you get for posting interesting stuff is a service that allows you to see other people's interesting stuff.

You know, with attention being the new currency and all that.

leonard | October 25, 2005 1:40 AM | Reply

Flickr interestingness is easily gamed by just adding your photo to as many groups as humanly possible.

Interestingness is probably the least interesting feature of Flickr.

Oh, and of course, if you're just interested in making money from your photos, you won't have them on a public photo sharing site in the first place.

spacer Phil Wilson | October 25, 2005 4:33 AM | Reply

"But interestingness in Flickr doesn't pay."

It pays in "props" which sometimes is more powerful than a dollar.

Quote: A soldier will fight long and hard for a bit of colored ribbon

spacer Hashim | October 25, 2005 8:43 AM | Reply

Hashim is exactly right: the payoff in Flickr is purely in social capital, which for many people is a very powerful incentive.

I actually wrote something about almost this exact thing just the other day:

weblog.scifihifi.com/2005/10/17/recombinant-podcasting/

Buzz Andersen | October 25, 2005 9:31 AM | Reply

One point of clarification: if you have a pro account, no-one sees ads on your photos :)

spacer Stewart | October 25, 2005 11:07 AM | Reply

Hmmm. Stewart seems quite emphatic about that point. :)

Liz | October 25, 2005 1:25 PM | Reply

Good point, Stewart, I probably should have been more emphatic than "Non-pro users are seeing ads around my photos".

And to be clear, I think it's perfectly fine to put ads around there to support the service for non-paying users. I'm just trying to understand the balance of the economics.

spacer Anil Dash | October 25, 2005 3:41 PM | Reply

I just make sure and never post anything interesting to my account. God I love sticking it to the man. Oh, didn't you hear? Flickr's hot, so they're the new "the man," just like Google.

More on the point, doesn't having your blog linked from your profile help drive a little traffic your way? At least their scratching your back a little bit there.

Jason Coleman | October 25, 2005 7:30 PM | Reply

As someone who gets a reasonable amount of attention at Flickr, I think I'm getting more than my fair share of the deal.

Thanks Stewart and Caterina and keep up the good work.

thomashawk.com/2005/10/flickr-caterina-fake-anil-dash-wealth.html

Thomas Hawk | October 25, 2005 9:36 PM | Reply

good post, Anil...it's interesting that Typepad allows it's users to share in the fruits of peer production via contextual ads and the tip jar.

Michael Parekh | October 26, 2005 4:41 AM | Reply

Photographers have a long tradition of being paid for their work. If you get good ratings and feedback and accumulate a fan base on Flickr, that can translate directly into building a business.

e.g. www.myraklarman.com , murn's photo business.

spacer Edward Vielmetti | October 26, 2005 10:44 AM | Reply

Anil: "I probably should have been more emphatic than "Non-pro users are seeing ads around my photos"."

What I'm trying to say is that they DON'T see ads around your photos, so no more emphasis was required ;)

spacer Stewart | October 26, 2005 11:53 AM | Reply

Anil: "I probably should have been more emphatic than "Non-pro users are seeing ads around my photos"."

What I'm trying to say is that they DON'T see ads around your photos, so no more emphasis was required ;)

spacer Stewart | October 26, 2005 11:58 AM | Reply

Not directly related to the thread ... but somewhat connected ....

There is an overwhleming number of web-based technical solutions that small businesses can use to advertise/sell and provide customer service ... Blogs, IMs, web-based IVR, podcasts, autoresponders ... too much cool stuff ....

(I know Flickr aint it, but got me thinking)

I find it hard to keep track of and rank/trust these solutions, which can actually yield competitive advantage for a small business ...

(Currently, it is thrilling for me to be able to run a small business out of a garage with just a ThinkPad, broadband, and a cellphone. My suppliers ship directly to a 3PL provider in New York, from where merchandise is redirected to end-buyers. I just manage the online shopfront.)

I wish there were one site or blog that could track all these cool tools ... (how do i send multiple SMSs using a PC?) .. and suggest how small businesses can use them and what's the best software to use.

Someone? Anyone?

E.g. it would be cool if someone could actually endorse PayPal as the best, so tech newbies can trust and trudge on ....

(For now I am very grateful to Debbie Weil for the good work she is doing)

Aby | October 26, 2005 1:32 PM | Reply

You also need to answer the question, "are my picturing being free part of what makes them interesting?"

Personally I look at the "interesting" photos on flickr everyday but if my favorite photographers said, "sorry, I'm moving to a pay-based site but it's really, really cheap so it's ok" I'd more than likely just say forget-about-it, regardless of how cheap the service was.

Professional photographers are paid for their work, but then again usually for something more than a 800x600 snap on a page. Either something you can mount on your wall or they are taking pictures for you, i.e. a wedding.

Flickr is fun because of it's community, open feeling. Anyone looking to make cash from their photos should setup shop somewhere else and actually present themselves as a pro photographer. I'd rather pay money to Flickr to *prevent them* from going into meglocorporate bottom-line hungery mode of setting up multiple pay-structures.

I browse Flickr to catch a personal glimpse into other people's lives and to view things through their perspecitive, not to buy something.

Shawn Oster | October 26, 2005 1:32 PM | Reply

Merchandize.

"If you like this photo, I'm putting it on Cafepress posters here: blah."

Also, could a cross-site reputation system keep track of someone's interestingness and display it with other data like their ebay rating and number of technorati links?

Nick Douglas | October 26, 2005 3:44 PM | Reply

I'd rather see ads, Flickr pictures, code, anything in place of the blinding color scheme of the sidebars of this blog which hurt my head.

Guess this is one is meant to be read only in the RSS reader.

TDavid | October 26, 2005 5:40 PM | Reply

Profiting from user generated content is Web 2.0 colonialism.

I have been thrilled when my photos on Flickr have been admired and reposted around the web. The day I feel my photos have monetary value is when I’ll put them up on my own site along with that C with a circle around it, we all have that choice.

paul | October 27, 2005 8:23 AM | Reply

Not only all of that with Flickr, but they are also now blocking sites from linking to them. They have blocked the referral from my site FlickrLicio.us with no warning or explination at all.

My site is an extension of a Flickr API, and isn't web 2.0 (which includes Flickr and social networking) all about using the sites beyond what they were intentioned thru API's?

Flickr has yet to comment on the reason behind blocking my site.

www.nickstarr.com/2005/10/27/flickr-doesnt-believe-in-web-20/

Nick Starr | October 27, 2005 10:31 AM | Reply

The balance of economics?

Simple. If Google's Blogger can survive as the most favorite free blogGER without ads, so should Flickr.

At the very least, there should be some kind of a Popularity Cloud where promising photographers get visitor counters, tag clouds based on visits, and maybe some incentive like free Pro accounts if a rookie gets nuff visitors...

My two layman cents.

DjNasser | October 27, 2005 10:40 AM | Reply

If what Stewart says is true, shouldn't that line ("Non-pro users are seeing ads around my photos") be struck out of the post?

omit | October 27, 2005 10:55 AM | Reply

What Flickr (and others) have done is shown that personal photographs are a cheap commodity. Why aren't they paying you? Because if you left, there'd still be thousands of other people who are willing to send in free photographs.

Typically, people get paid according to demand or difficulty of the work, etc. As you well understand: writing easy-to-use software is hard, and gathering an audience of readers is hard. Generating content you wish other people would look at is easy.

That's why you, and advertisers, pay Flickr rather than the other way 'round. (It's also why I'm commenting on your blog rather than the other way 'round.)

Steve | October 27, 2005 12:37 PM | Reply

This seems to be in a similar vein to a discussion we had in a college law class. It was about video taping a football game. The networks put disclaimers on their broadcasts that rebroadcasts are illegal. If I tape a game and then show it at a private party where no fees are charged to my guests, have I broken the law? I didn't receive any monetary compensation for the game.

This may be wrong (law class was a long time ago), but the professor said, yes, technically the law has been broken. He said it's because of the notion of utility. I have gained in status by rebroadcasting the football game. If I had watched it by myself, I haven't gained any status, so that's legal.

It seems the same concept applies here. No money exchanged, but a popular Flickr user gains status by using the Flickr service.

Utility doesn't always have to be about money.

Peter | October 27, 2005 1:22 PM | Reply

As soon as the company that pays your salary sends me some money for all the goodwill and free advertising for their product that my weblog sends their way, I shall take this argument seriously.

hugh macleod | October 27, 2005 2:10 PM | Reply

You get something--free photo hosting, and you give something--Flickr makes money off ads people click while viewing your photos. It's a mutually beneficial relationship that you're free to leave at any time.

Personally I feel it's ridiculous to expect Flickr to pay you for giving you a service. To me it's like saying you should get paid to watch TV... you're viewing ads and making the station money, you might even recommend the show to your friends, yet you don't expect them to send you a check. The only difference is that instead of giving TV networks content, you're giving them market share--something that is equally valuable to them.

marcus | October 27, 2005 5:47 PM | Reply

Should google pay me dependant on how much I use gmail?

Ben | October 27, 2005 11:32 PM | Reply

I have no trackback set up yet for my blog so I thought I'd inform you that I've posted about this at:

singpolyma.blog.com/377345/

Singpolyma | October 28, 2005 12:26 AM | Reply

I think this poses an extremely interesting opportunity for 'content hosters' such as flickr, technorati, delicious, etc to create a whole new economic model. It just takes the guts to try it.

Brad | October 28, 2005 1:40 PM | Reply

I think the second is true: you should make an automated script that "flickrs" your photos for you so you can place your own ads around them. While I can see the validity of your argument, I think from Flickr's end they could say, "we don't need Anil Dash, if he leaves we have a billion other users that make us rich, and we are still the best service for them."

C Montoya
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