2008 07 25 vrm

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A VRM Minifesto

Doc Searls

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1) A free customer is more valuable than a

captive one.

Problem is, too many of us still think the opposite way.

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We still think the best customer is a captive

one.

That’s why we (as sellers) “manage,” “control” and otherwise “own” creatures called “consumers.”

And that’s why…

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We think a “free market”is “your choice of captor.”

Which brings us to Thesis #…

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2) Markets won’t be free until customers are

free.

And the old mentality becomes obsoletebecause free customers prove more valuable than captive ones.

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What we need is VRM:Vendor Relationship

Management.

It’s the Net’s end-to-end principle, applied to markets.

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For companies,VRM is the reciprocal of

CRM.

VRMCRM

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For individuals,VRM is a way to relate.

It also applies the Net’s end-to-end nature.

VRM

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I should be able to express global (and logical) preferences outside

of anyone’s silo.

Such as… IF I am calling for tech

support,THEN I don’t want to hear

a commercial message.AND I am willing to pay X

to reach a human in <60 seconds.

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I should be able to manage

my own health care data.

Instead of risking my life when I fill out manual forms with names of

diseases I don’t know how to spell.

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I should be able to issue a “personal RFP”

to whole markets, on the fly.

For example, send a message saying I need a 200w 220->110 converter in Amsterdam on a Sunday afternoon…

— without going into a silo, or giving any more than the required information…

— which mainly consists of being trustworthy and having money to spend.

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I should be able to manage my relationships with vendors. By my

own devices.

That means “agreements” need to go both ways.My TOS should eliminate TOSes from corporate lawyers

that nobody reads and everybody has to “accept”.It means real relationships between truly consenting

patries.Just like we have in the physical world.

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One project is a new business model for free media.

(one that isn’t advertising)

Free media include…Non-commercial broadcasting

Blogs, podcastsMusic…

Anything that’s either free on purpose or too easy to “steal”

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Its toolbox is the relbutton:

a symbol of VRM+CRMIt says,

“I want to pay…what I want.” And/or,

“I want to relate…on my terms…

and not just yours.”“This is my code’s way

of letting your code know that.Even if you’re not listening.

Yet.”Its how VRM meets CRM.

CRMCRMVRMVRM

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The relbutton can represent

three different states.1. Intention to buy (and to

relate).2. Intention to sell, but also

to relate on your (the buyer’s) terms, as well as your own.

3. Existing relationship — which can be viewed and unpacked on either side.

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There’s no limit to data types

stored on both sides.

These can include intentions, transaction records, preferences, memberships, “social

graphs”, shopping lists, existing agreements, whatever.

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Here’s where we’ll see it first:

On a radio/podcast tuner for the iPhone and other mobile Internet devices.

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It will providea new business model

for media.

Starting with noncommercial sources.And growing to include everything.

Starting with the music business, probably.

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VRM makes customers into platforms.

It gives customers an API, or a set of APIs. Or whatever it takes.Anybody can program goods and services (and base businesses)

— on what customers actually want, and are in control of.Some specifics, to guide both developers and marketers…

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VRM is personal.

That doesn’t mean it isn’t social.Just that it’s personal first.

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VRM tools are personal tools.

Just like the wallet is a personal tool.Just like a bank account is a personal tool.

Not like a credit card, though. Because bank accounts are self-issued in ways

credit cards are not.An r-card or a mine! or a personal data

store need to be personal tools or toolsets.

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VRM tools provide individuals with ways to manage relationships.

With vendors.With organizations.

With government entities.With each other.

Whether those relationships are enduringor transitory.

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With VRM, individuals arethe central points of

integration.

— Even if the data is stored in the cloud.— Even if the individual is trusted thanks to

a third party.— Especially if a third party is involved.

Which it will be in many (but not all) cases.

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There are no limits

— to data types (or quantities) that individuals can hold

— or to what they can assert.

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There are no limits

— on the type or amount of business that can be built on VRM.

— because it will be built on free customers working in free markets.

— Same goes for governments and citizens,organizations and members.

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We’re sitting at Ground Zero

for Markets 3.0

1.0 was the Agrarian Age2.0 was the Industrial Age3.0 is the Information Age

… in which information is not just another word for data.

It’s how we inform — and form — each other.

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So, let’s rock.

And build stuff.