What is Empire Avenue? Is it game, a fad, or something else? EA promotes themselves as the Social Media Exchange, where you can invest virtual currency in any social media profile by buying their shares, meet new people, unlock achievement badges, and earn virtual cash by being active and social online.
I joined Empire Avenue over a week ago on May 14 to see what is was about after seeing some tweets about it on Twitter @EmpireAve. I have also had good discussions with some of my Twitter friends on the merits of Empire Avenue. With my financial and analytical background, I look at the framework of social media activities as needing to add economic value to ones business model and there is a lot of data out in the "Internet cloud"and many algorithm's trying to measure it. Empire Avenue does it differently than @PeerIndex and @Klout, by adding an element of fun and Game Theory.
When you join Empire Avenue, you can connect your Social Networking accounts, and they will score activity and engagement in each account and give you a virtual share price. Depending on the social account, it can take up to five days for your score to calibrate. The connections you make on Empire Avenue create "value-based" relationships, a deeper relationship than simply "following" someone, in a completely less intrusive context than becoming "friends." Some of them have now followed me into various Twitter Chat sessions. Every day, you're on Twitter, talking to friends on Facebook, uploading videos or photos, and writing blog posts. Just for doing your normal activity, you'll earn Eaves – virtual currency – and Empire Avenue will give some more virtual cash to your shareholders.
The stock price structure of Empire Avenue adds a human value based perspective to your social media activity. The value based approach also encourages you to check out your investments on their multiple social media platforms. In Game Theory it has shown that People use virtual currency (Eav's in the case of Emprie Avenue) as real money.
While People will utilize Empire Avenue as a game to get the highest market value, they will have to engage in social media activities to drive value. Trick, invite your heavy social media friends to join early and buy early before their activity is fully factored into the system. While I may have missed the LinkedIn IPO on its first day, I did miss the investment in Stacy Zapar,@StacyZapar Linkedin's #1 most connected woman and Viveka von Rosen @linkedinexpert, a leading trainer on LinkedIn debut's on Empire Avenue. This was Legal insider trading.
Tuesday, May 24, 2011
Monday, May 16, 2011
Image via WikipediaThe Securities and Exchange Commission may adopt rules to let Internet based technologies be used in fund-raising. The agency is considering to let companies use social networks such as Facebook and Twitter to raise funding by tapping thousands of small individual investors for small amounts of money, the Wall Street Journal reported. The full WSJ post is below.
The move is part of a larger review by the Securities and Exchange Commission into whether to ease decades-old constraints on how companies can issue new shares to the public. The new funding techniques, known as “,” could usher in a new era of capital raising for start ups. The technique has spread from artists looking to fund their creative works to entrepreneurs trying to bootstrap companies without giving up control to venture capitalists. Typically, a company might raise $100,000 from an Internet site where users could sign up to buy $100 worth of shares.
Crowd funding could be a cheap source of cash, competing with angel investors who specialize in giving seed rounds to start-ups. Since the amounts of money are small, the downside risk isn’t too bad for investors. But the trick will be in protecting the public from scammers who have no intention of following through on promises since many small investments can mean millions of dollars. The SEC has rules today restricting a lot of these type of investments to "Knowledgeable Investors" who have minimum networth requirements. Several start-up businesses that I have talked to are interested in this source of funding.Would you invest in a business start-up this way?
Small Business News: Crowd-Funding Sites Prepare for a Boom - WSJ.com
- SEC Reviewing Rules on Crowd Funding Sites (bjconquest.com)
- Crowd-Funding Sites Prepare for a Boom (online.wsj.com)
- Need Cash For Your Project Or Startup? Ask The Crowd (adpulp.com)
- SEC considers letting startups use social networks to raise money (venturebeat.com)
- How to use social media to crowd fund an idea [video] (thenextweb.com)
Image via CrunchBaseI came across the blog below on Social Media Today and found that I have shared many of the same experiences. A lot of businesses have a Twitter account and actively promote “Follow us on Twitter.” Generally it’s communicated in a lot of areas. As Mark Fairbanks states in his blog, "Unfortunately many of these Twitter accounts are unmanned or only exist to tweet the latest sale, special or company news." As I have noticed in my Kansas City Business Tweets list that sources my KC Business Daily Tweets, many of these accounts are broadcast only like a news release. They are missing the real value of engagement on Twitter.
I will be sharing some examples of Twitter engagement and the Return on the Relationship or Return on Investment in future blog posts. Participation in Tweet Chats and monitoring key words on twitter will be some of the methods discussed.
Luckily, we do have a lot of small business engagement in Kansas City. What kind of Twitter Engagement do you see?
I just tweeted your business, but nobody was home | Social Media Today
- Say it with Me: Social Media is Part of Marketing | Social Media Today (charliepankey.com)
- 4 Great (free) Tools to Measure Social Sentiment and 4 Important Stats | Social Media Today (serve4impact.com)
- 44 signs it's time to overhaul your social media strategy (holykaw.alltop.com)
- Twitter - Why Should Businesses Tweet? (businessblogwriting.com)
- 17 Twitter Tips from Mashable Connect Attendees (pratyushkp.wordpress.com)