Creating Online Markets (via SSIR)
via SSIR: Click to listen to Premal Shah, Kiva’s president, discuss the creation of online giving markets and how the power of online communities can strengthen the world of microcredit.
The whole talk is less than an hour I believe, and maybe a fourth is Q&A. Premal Shah makes three points to creating online markets: 1) Make it an addictive user experience, 2) Be radically transparent 3) Crowdsourcing 4) Building increasing returns on data 5) Finding value in the long tail
Interesting strategies from Kiva:
- Under his point to be “radically transparent”, he cites Kiva’s “Help Pay the Rent” option that will give 10% of your donation to Kiva’s operating costs. One year, this option funded 60-75% of their admin costs. Also, using the CEO blog to talk about the “highs and lows.”
- They couldn’t do a full-scale social network functionality, but they realized by simply adding a profile photo upload, it provided the “fun” that users wanted.
- To help them scale, they implement “crowdsourcing” through a full-fledged recruiting program to send people overseas (not working remotely but on site) for 10 weeks.
Other interesting points:
- 10% action rate (10 people will give out of every 100?)
- Most online giving markets do not have huge marketing budgets
- “Kiva’s a really bad investment but a really great donation.”
- Plan for organic growth, not press-driven growth
- Oh, and for some of you, in the Q&A portion, listen for a familiar voice (not mine).
More here: http://www.ssireview.org/onlinegivingpics
