TALKING NOTES Feb 12th, 2002
For PowerPoint presentation Click Here
Purpose: Session will focus on key features of online communities in general and then through case studies – the communities that the panelists have first hand experience of working with - in science (Monica Bradford – managing Editor of Science), technology (Steven Cherry – Associate Editor of IEEE Spectrum) and medicine/health (Bill Silberg – VP and Executive Editor for Medscape Inc.,).
Online community
Community versus
Portal
For the purposes of this session:
Online Community is an online meeting place where input from the community is of primary and intrinsic value, content is secondary.
Portal is a meeting place for content – the creator of the portal has carefully assembled content of particular interest to the individuals they wish to attract to use it, community is secondary.
Business models
“ Even under the best of circumstances, electronic communities may take a decade to grow to sufficient scale to be significant contributors to overall profitability.”
(see: HBR article referenced at the end of MW’s P/point slides.)
1. Free access – some registration often required
2. Advertising – the thorny issues
- companies reluctant to advertise on pages that are ‘user generated’ – may not be good quality.
- Users of online community sites interact with advertising less than with the content part
3. Subscriber fees – users don’t want to pay to talk, introducing subscriber fees dampen traffic and then the community suffers. But note www.Motleyfool.com introducing access fees to discussion boards this month - $4.95/month, $29.95/year.
Various different types of community:
1. Community of practice
Generally refers to professionals, communities allow members to establish a bond of common experience and challenges and build networks which often may be continued offline. Thought to offer opportunity for translation of community into revenues.
2. Community of interest
Share a common interest or passion- sport, music, gardening. Community exchange ideas about this one interest and know little more about each other e.g.: www.Gardenweb.com.
3. Community of purpose
People going through the same process or trying to achieve a similar objective e.g. potential travelers researching a trip to New Zealand, Antique collectors, boat buyers. Community provides – shared experience, exchange of information.
4. Community of
circumstance
Similar to above but driven by circumstance rather than profession – tend to be personally focused and are around life-changing experiences – such as death, illness or divorce.
What makes a
successful community?
1. Members generate content, influence its growth, and determine the direction it evolves in. E.g. Amazon – book, music reviews, E-bay – buyers and sellers ratings. Also tend to be self-perpetuating
As a result you can ‘feel’ others in the community “Other people who bought this book…”
2. Involvement and interactivity – members can participate, there are e-polls
3. Frequency and duration of visits – repeat visits and users stay longer
Community tools include:
· message boards
· chat rooms
all free to web users..
next generation -audio chat- users pay to host their own
online talk show.
Why build a community?
1. Communities create value – more content more users.
2. Companies learn from communities – if users really buy in – they will give ‘vocal’ feedback – which tends to be more honest than market surveys.
3. Users recommend one community to others
4. Communities build barriers to entry – an established community is difficult to move.
However- many online community sites are not economically viable and never will be.
Some types of sites
that are working:
1. Specialist site – slash dot.org – for IT professionals – true community – but they would wouldn’t they?
2. Search sites – users are willing to pay to find something – a suitable job candidate e.g. Monster. Com.
3. Purchasing communities –connecting people interested in buying – Amazon.com
4. Scheduled events- corporate press briefings, annual meetings - save travel and venue costs.
5. Advocacy groups – often not interested in profits – but driven by advocacy, education, politics.
6. Subscriber sites – salon premium.com – seems to be working, sophisticated approach to a community they know well $30/year – but it is content again that is being sold.
In sum – striking an emotional chord seems to turn online communities on and off.
So how does all this translate into professional communities?
Further information
n
“The real value
of online communities” Armstrong
and Hagel, Harvard Business Review, May-June 1996 pp134-141 – (classic paper)
n
http://www.webtechniques.com/archives/2001/12/rosenberg
for “Inside Salon Premium” how Salon.com introduced a subscription product
Salon premium.com in 2001 to a free online community
n http://www.onlinecommunityreport.com/- there are lessons to be learned from the online consumer communities although not all of them translate across to professional groups…..
Mary Waltham
© 2002