A sane business model for social media.

Considering the recent scandals and controversies emerging from data mining of social media, I wanted to put together the following thoughts and present a framework for a win-win solution for all parties involved in the social media ecosystem.

What is the problem ?

Presently, the predominant business model for social media appears to be one of free membership to users in return for providers making money via marketing and advertising, based on mining the user data. This setup, structurally and inherently, is incentivizing the providers to maximize profits, even if at the expense of the users.

How does it work ?

Let’s use a metaphor. You have an issue ( psychological ) for which you want a solution. You look around and find several qualified psychiatrists, but one of them stands out .. at least initially, to you, because this doctor is providing a free service . That’s right, free service. You are initially sceptical, but the reviews check out. So, human nature being what it is, you quickly overrule your own misgivings and questions under the pretext that your otherwise expensive sessions are now offered free by a psychiatrist who is good per reviews. How can you go wrong ? Fine. You go and start having sessions. Maybe these sessions are helping a little bit .. maybe more…