Desire and disintermediation

Tue, Oct 2, 2007

Business, Technology

Buddy, can you spare $25? Ilham Ibrahimov of Khachmaz, Azerbaijan only needs another $325 in order to expand his store. It's such a cliche to say that the Internet has revolutionized business. But when you look at the disintermediation that continues to take place, you can't help but to think that we live in a time of great opportunity. Sure, after the last bubble, nobody believes that every new Web business will displace the old guard, but many will. At the very least, the Internet will make it easier for upstart organizations to succeed, and even displace mass-marketers, by catering to the finite and sometimes fanatical consumers that inhabit the long-tail. Seth Godin points out a few examples and attributes the shift to a change in media from mass to granular. "Change the media," he says, "and the organizations change too. Kiva instead of the American Heart Association, Amazon instead of the local bookstore, MoveOn instead of the DNC." He makes the case that as the marketing medium has shifted, so have the fundamentals of the underlying businesses. Like so many bloggers and journalists, I'm quite taken with the story of Kiva.org, the site that connects do-gooders and their pocket change with small business owners in developing countries. (I know that Kiva emphasizes the fact that these are loans, not donations, but I think participation in Kiva comes out of a desire to help, not to make profits.) While they probably won't bring about the demise of the Red Cross, the founders of Kiva have raised the bar for all non-profits, including the famous micro-lender, Grameen Bank. Kiva makes it possible to know who you're helping (e.g., a farmer in Viet Nam), specifically how you're helping (e.g, funding a new irrigation pump) and the results of your actions (e.g., more acreage planted, loan repaid, etc.).
  • Mass-market model: my money is going to help poor people in the Third World. I'll know I've succeeded when there is no more poor people in the Third World.
  • Disintermediated model: My $25 goes directly to Ni Luh Taman, a farmer in Indonesia, buy piglets and feed. I'll know I succeeded when Ni Luh Taman writes that she has repaid the loan with the profit from selling her pigs.
In the past, when I've made donations to charities, I don't recall ever thinking that I wanted this kind of information or to make this kind of connection. But now that I know it's possible, I'll be looking for it, expecting it: "Okay, here's my money. Now, where's my results?" I don't just want to experience the warmth of giving. I want the experience of making a connection with real people and knowing specifially how I've contributed to life on Earth. I hear lots of clicking and whirring, as my mind strives to apply the Kiva story to new situations. Recently, I was invited to sit on the board of Comunidad, a charity founded by my friend Melanie Ebertz. The organization's latest goal is to establish a traditional weaving school in the Peruvian Andes, so that street children can learn the trade from a master weaver. What's the potential for applying Kiva-esque feedback and connectivity to this project? Can donors watch the construction? Can they participate in the decision making? Can they correspond with the instructors? Can textile fanatics come down and volunteer in the studio? Can they track the progress of students over time? Can they purchase newly made works by students? I'll post an update as things progress.

This post was written by:

Don Ball - who has written 92 posts on Buy Soma Online Without Prescription.


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3 Comments For This Post

  1. Reggie_Marigold Says:

    “I want the experience of making a connection with real people and knowing specifially how I’ve contributed to life on Earth.”

    That’s it exactly! + there’s an element of respect. No, that’s not the right word. It just seems more human and dignified. Maybe that’s the word I’m looking for. Dignity.

    Comunidad’s latest goal to establish a traditional weaving school sounds delightful. I look forward to hearing more as things progress. Every day I’m amazed at the creative and innovative solutions that individuals and groups of people come up with. Simply fantastic!

  2. dball Says:

    Thanks for your comment, Reggie. Say, how has Squidoo worked out for you? I’m thinking about jumping into that arena.

    -Don

  3. Reggie_Marigold Says:

    Uhmm…Don, I’m pretty much a luddite. I joined Squidoo because of Kiva. I was trying to find a way I could do more. Bumper sticker wasn’t my thing. Nor were magnets. I didn’t have a blog so I didn’t need a banner. I’ve got responsibilities that make it improbable to volunteer in the field. I sent out 31 (via 19 invites + 21 read this) e-mails and nary a one responded to me or the site. They had something about a make a free lens and I didn’t understand what that was and so I just did it. Both feet.

    Had Kiva gone on Oprah and be mentioned in Clinton’s book before I tried the Squidoo route I don’t thnk I ‘d have gone to Squidoo. Why did I go? Because when I read about Kiva on YAHOO! I was so excited. Then I joined Kiva and made some loans to Sierra Leone and became more excited. I love the concept. I wanted others to know about and to do it.

    Squidoo makes making a page (lens) easy to do. I don’t know what I’m doing. Many there do. There are tons of resources and tons of tips and if there were enough hours in a day I’d probably still not understand much of it. If any money is made off my lenses they go to Kiva. There are a variety of charities to choose from and/or one can have the $ go straight to them. The $ though confuses me. I haven’t made much but I’ve only been there one month.

    All this to say – if you’ve got stuff to say (and you do) and you want to share it with the world (yes!)…do it! Or try it. Or swim around and sample it.

    “JUMP. JUMP. JUMP”

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