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A Note on Digital Sharecropping

December 18, 2012 by · Leave a Comment 

By definition, digital sharecropping is “One of the fundamental economic characteristics of Web 2.0 is the distribution of production into the hands of the many and the concentration of the economic rewards into the hands of the few.”

The term derived from farming practices after the American Civil War, and not very different from feudalism, where a landholder would permit farmers to grow crops on their land and would enjoy most of the profits generated by the crops. Simply put, the landholder has all of the control and could put a farmer out of work if he wanted to.

While we’ve moved on from such times, the truth is that this practice remains prevalent. Take Facebook and Google+, for example. The more content you create for them, the more valuable they become.

Since most businesses are dependent on Facebook to thrive and have set up their business online for free, it’s important that you have to stay in the ‘good books’ of Facebook or you can find yourself out in the cold.

This is, for all practical purposes, sharecropping in its digital form. Without a doubt, there are certain disadvantages that come in taking such an approach.

Firstly, the ‘landlord’ might remain in demand forever or gone tomorrow and all those hours that you’ve put into your fledgling online business will be for nought.

Secondly, there’s every chance that you can violate the terms of service or Facebook can change the way you relate to customers. What will your business do then?

This is why it is always recommended to have a well-designed website with your own web hosting provider, an opt-in email list and a reputation that offers value who stays or goes.

In short, this is best way to build your business by buying your own land instead of renting it.

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