Wasting Social Currency?

by Jay Deragon on 05/25/2010

Communications are a currency of exchange for producing something valuable. The value of effective communications is an engagement which propagates learning. Learning begets knowledge  that we can apply to solving problems. Problems solved represent increased productivity. Productivity adds value to any economy.

Social currency represents a communications exchange relevant to relationships we have or develop. Some people and organizations treat these exchanges like toilet paper.

Evaluating Social Currency

Social currency is information shared which encourages further social encounters and exchanges. It is a significant factor for any business .  People talking and sharing things is a form of social currency that draws attention and attraction to the things or person being discussed. People  feel the need to learn about things, people and businesses to help and become part of social interaction. However people can easily move to a new topic or person quickly if a new topic, business or person offers more social currency.

What is completely new or unique within the human exchange about things, people and businesses are the reach and influence by the masses of people vs. mass media. The new dynamic brought on by all things social is forcing traditional mass media outlets and programs to try to  create content that people will use as social currency. People  choose an action based on the context of relevant content to create social currency.  The actions generated from social currency then influences the behavior of people who ultimately create multiple forms of transactional value, economic, social, political and spiritual.

Fame provides the person, organization and groups with social currency, where a poor reputation deprived them of it. Fame is when a large market of “people” recognize someone, a topic or a business as a result of mass awareness fueled by people, one to one to millions.  Social currency becomes significantly valuable when the accompanying fame has a strong affinity and influence on a “mass of people” and their relevant behavior. Social currency transforms information into knowledge which is traded, acted upon and used to create or reduce value, capital.

Wasting vs. Improving Social Currency

As organizations and people engage using social media a critical factor is whether the use of it improves or waste an exchanges of value, information and knowledge. Value exchanges carry relational attributes where people consider the exchange worthy of their time and attention. Traditional marketing, advertising and PR tactics have historically been used to “grab people’s time and attention” without considering the relational value wasted or improved, social currency. The internet has now enabled the “mass of people” to create relational value and reject media not focused on relevant value exchanges.

Those that will and are winning the most value are those creating and giving the most value. The relevant social currency being exchanged is the result  of distributed value received and then shared, one to one to millions. The obsession with getting economic gain through social media reflects a focus on an end result. Said focus misses the relevant “production processes” that create results. An economic gain is the result of knowing (knowledge) and understanding (wisdom) social currency.

The word “social” means attitudes, orientations, or behaviors which take the interests, intentions, or needs of other people into account. The word “currency” means an acceptable means of exchange of value. The result of producing anything represents a gain or lose of value for people. All of these results creates or destroys more value than money but money, or lack thereof, may be the medium of measure indicating an end result.

No one likes wasting time or money. Spend both wisely and the return from the human network creates more than expected. Think differently and provide value then results comes naturally.

{ 26 comments }

Alex Hall May 28, 2010 at 10:16 am

Wasting Social Currency? – http://www.relationship-economy.com/?p=10328

Alex Hall May 28, 2010 at 3:47 am

Wasting Social Currency? – http://www.relationship-economy.com/?p=10328 #socialmedia

Siteworx May 27, 2010 at 12:20 pm

Are you wasting your company’s social currency? http://ow.ly/1QGCy

Askoli -rise with us May 27, 2010 at 6:42 am

Wasting Social Currency? http://bit.ly/dkfFH8 Communications are a currency of exchange for producing something valuable.

Tabitha Edwards May 26, 2010 at 4:00 pm

Wasting Social Currency? http://bit.ly/aIOWfM

tuck May 26, 2010 at 3:21 pm

From my Reader: Wasting Social Currency? http://ow.ly/17vG7u

Anneliza Humlen May 26, 2010 at 7:50 am

Importance of #Social currency: transforming information into knowledge http://ow.ly/1PXpX #sme #engagement #content

Gon Zifroni May 26, 2010 at 1:06 am

mass of people create relational value & reject media not focused on relevant value exchanges. RT @ingenesist @TopsyRT http://bit.ly/bpamzT

Dan May 26, 2010 at 12:18 am

The only thing left is a conversion factor between financial currency and social currency and an entirely new “monetary system” will pop up overnight. It is happening already – If I spend 25 dollars on a book that will teach me to use social media effectively, I have effectively converted financial currency to social currency. Now think of the 400M on Facebook, 75M on Linkedin and 50M on twitter, every minute that they spend in new media is a minute not spent in old media. Again, this is exactly the same as converting financial currency into social currency.

The only thing left id for some application to come up with an acceptable algorithm that directly converts from one to the other….and the world will change. No kidding.
.-= Dan´s last blog ..The Wisdom of Wisdom =-.

ingenesist May 26, 2010 at 12:11 am

RT @TopsyRT: Wasting Social Currency? http://bit.ly/bpamzT

SocialMediaSentiment May 25, 2010 at 2:05 pm

"Wasting Social Currency? |" http://bit.ly/bKn0UN

Pamela Palafox May 25, 2010 at 2:05 pm

RT @TopsyRT: Wasting Social Currency? http://bit.ly/bpamzT

StarGazon May 25, 2010 at 10:00 am

Wasting Social Currency? via The Relationship Economy – Communications is a currency of exchange for … http://tinyurl.com/36eqhoe

JDeragon May 25, 2010 at 9:37 am

As organizations and people engage using social media a critical factor is what will improve? http://bit.ly/dkfFH8

JobShoots May 25, 2010 at 5:59 am

Wasting Social Currency? http://bit.ly/cqq81b #news #socialmedia

JobShoots May 25, 2010 at 5:59 am

Wasting Social Currency? http://bit.ly/cqq81b #news #socialmedia

Alltop May 25, 2010 at 5:59 am

Wasting Social Currency? http://bit.ly/91FL9B Social-Media.alltop

??? May 25, 2010 at 5:43 am

Wasting Social Currency?: Social currency represents a communications exchange relevant to relationship. Some peop… http://bit.ly/cJadIN

Allen Howell May 25, 2010 at 5:01 am

RT @TopsyRT: Wasting Social Currency? http://bit.ly/bpamzT

StarGazon May 25, 2010 at 5:00 am

Wasting Social Currency? via The Relationship Economy – Communications is a currency of exchange for … http://tinyurl.com/36eqhoe

Achievers Network May 25, 2010 at 5:00 am

Wasting Social Currency?: Social currency represents a communications exchange relevant to relationship. Some peop… http://bit.ly/cJadIN

Aron Stevenson May 25, 2010 at 5:00 am

Wasting Social Currency? http://bit.ly/cimEVF #socialmedia

prblogs May 25, 2010 at 5:00 am

RelationshipEcon: Wasting Social Currency?: Social currency represents a communications exchange relevant to relat… http://bit.ly/cJadIN

Angela Suddarth May 25, 2010 at 4:54 am

[email protected] Wasting Social Currency?:
Communications is a currency of exchange for producing something valuable. … http://bit.ly/9NCa7A

The Social CEO May 25, 2010 at 4:54 am

The Social CEO Wasting Social Currency?:
Communications is a currency of exchange for producing something valuabl… http://bit.ly/9NCa7A

JDeragon May 25, 2010 at 4:46 am

ReThink: Wasting Social Currency? http://bit.ly/bPGxUI

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