Relica's Value Creation. (Day 37)

Article
Patrick JC.

14 days ago by PatrickJC

How ya’ going? I’m gonna’ write a little about value creation within the social media platform, Relica. Value creation is defined as a business using their resources to create something of value, of which is then relayed unto consumers (Hendricks, 2018).

Relica is an emerging social media platform that follows a similar image-based social model to Instagram. However, unlike Instagram, Relica involves the process of micropayments by implementing blockchain technology. These micropayments directly influence the way customers perceive value towards the platform, as they are now directed by the company to look upon themselves to find internal value to then share and profit with others publicly through Relica’s application.

Value creation is therefore sustained within Relica’s business model, provided through a consumer incentive to continue spending time interacting, earning and behaving profitably throughout the platform. I will explore how Relica creates value among its userbase and among user behaviour. I highlight that the value creation is purposefully inverted towards the consumer via economic incentives, thus keeping them actively using and interacting with the brand and platform.

Relica holds a competitive advantage among other social media companies by creating self-actualized monetary value within the consumer. This is done via micropayments rather than exploiting the consumer’s time via conventional frameworks such as the advertising model. Like network television, the advertising model in social media revolves around internet- based companies to profit from advertisers via business-to-business agreements. These agreements allow the sharing of ad content, banners, videos and surveys on their platform directed at the user of the platform (Ahmed & Raziq, 2018).

Such platforms currently using this model include Facebook, Instagram, YouTube and Twitter. Relica however, uses a micropayment model via blockchain technology in which users pay small, instant and feeless transactions within every interaction on the platform. Relica then receives an even smaller percentage of the initial transaction, therefore eradicating the need for advertising whilst simultaneously incentivising the company and its users to on-board and scale.

For example, the user may like another user’s photo just like using Instagram, although the cost to click ‘like’ 5 cents in total. Once clicked, 2 cents then go to Relica, and 3 cents goes to the user of the liked photo. In reverse, a user may upload a photo, in which ten other users have clicked ‘like’. 20 cents then go to Relica, and 30 cents goes to the uploader.

This creates multiple economic and value incentive streams for the user and the company; implementing a value feedback loop among all that interact within the platform. Plus, linking Relica directly to the consumer. Additionally, it eradiates the low-quality interactions among many current social networks regarding spam, as a spammer now has to pay per every interaction.

Prahalad and Ramaswamy (2004) state that high-quality interactions among the individual and the company are at the basis of value creation, in addition to being a key competitive advantage. Via the micropayment blockchain model, the consumer is forced to create
value upon their own perception of themselves and the Relica platform. All within their own ability to create internal value through their interactivity, creativity and profit-seeking behaviour. Blockchain micropayments are yet to be embraced in the mainstream social media platforms that continue to use the exploitative and value-diluting advertising model. This is giving Relica a huge competitive edge.

Many additional features that create value and change user behaviours among Relica can be implemented in the future thanks to the company infrastructure and framework. One recent feature is known as Pay-To-View. This feature allows users to implement a paywall set anywhere between $0.01 US dollars and $100 US dollars among their content. It strongly motivates the user to produce a relevant and desired image as the buyer may then continue to earn the user more revenue from future pay-walled content.

When investigating the pay-wall mechanism of modern news websites such as The New York Times, Pattabhiramaiah et al. (2018) notes that if a consumer reads a desirable monetized article, they are likely to create a spill-over effect and read other similar monetized content. This same spill- over effect can be potentially harnessed in the behaviour of a user of Relica on a smaller scale.

Coingeek author, Jon Southurst notes statistically, that some users of Relica have earned upwards of $40 US dollars simply by interacting regardless of Pay-To-View through multiple means such as artwork, exclusices, giveaways and music. At the time the article was written, users interacting with Relica earned 2 cents per like, 8 cents per each follower, and 1 cent per comment. By giving the user an economic reward for using the platform, not only will it create value for the brand, consumer and company, but also change the user’s behaviour surrounding social media marketing and the internet.

‘‘A key factor that decides the success of Internet marketing is user involvement. The level of consumer involvement in a product category or service is a major determinant of online purchase or usage behaviour.’’ (Wu, 2002).

Because users are so involved in the framework of Relica’s value model, its marketing strategy creates an inherent feedback loop surrounding user purchasing behaviour, usage and overall success of the company. By having a successful userbase, a successful brand image will follow.

Relica uses a new and emerging micropayment model among the already existing frameworks within internet marketing strategies. Value creation among their product is aimed not only internally within the company, but externally within the consumer. By implementing a multi-directional foundation of value throughout their social network, value creation remains consistently incentivised among consumers - whilst also directly influencing the behaviour of the consumer.

Through economic and value incentives, Relica’s marketing strategy stands out as a fierce competitor within the broad realm of internet social networks.


References

Ahmed, Q. M., & Raziq, M. M. (2018). The social media advertising model (SMAM): a theoretical framework. Journal of Managerial Sciences, 11(3), 117-144.

Hendricks, B. (2018, September 30). “Value Creation in Business: Definition & Example.”

Pattabhiramaiah, A., Sriram, S., & Manchanda, P. (2019). Paywalls: Monetizing online content. Journal of marketing, 83(2), 19-36.

Prahalad, C. K., & Ramaswamy, V. (2004). Co-creation experiences: The next practice in value creation. Journal of interactive marketing, 18(3), 5-14.

Southurst, J. (2021, June 23). ’’Pay-to-view Gives Popular Relica Creators More Chances to Earn Money’’ Coingeek.

Wu, S. I. (2002). Internet marketing involvement and consumer behavior. Asia Pacific Journal of Marketing and Logistics.


Cheers,

PJC.

RelayX: pc@relayx.io
Twetch: https://twetch.app/u/1374