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Web Reputations
(Avoiding Social Media Landmines in PM)

                  F. Randall “Randy” Farmer
Also available free on the companion blog  wiki at http://buildingreputation.com
                         © 2010 F. Randall Farmer  Bryce Glass
Why Web Reputation Matters
to Product Managers

    Increasingly cropping up on your B2C and B2B
     roadmaps – because it creates value

    Many reputation models for different needs

    But, Choosing poorly can have a disastrous
     impact on your product’s success!



                  © 2010 F. Randall Farmer  Bryce Glass
5 things we get wrong about reputation


    “It’s the People, Dummy”
    “One Reputation to Rule Them All”
    “All I Need is Five Stars”
    “Competition is Always Good”
    “Negative Karma Will Out the Bad Guys”




                 © 2010 F. Randall Farmer  Bryce Glass
© 2010 F. Randall Farmer  Bryce Glass
A conversation…




        Hi! Bill!                      How’s the family, Robert?




                    © 2010 F. Randall Farmer  Bryce Glass
Our Wendy will be going to Harvard next year!




           © 2010 F. Randall Farmer  Bryce Glass
Really! I’m curious — why Harvard?




      © 2010 F. Randall Farmer  Bryce Glass
Why, it has the best reputation—especially for law.




              © 2010 F. Randall Farmer  Bryce Glass
Did she consider Yale?




© 2010 F. Randall Farmer  Bryce Glass
Yes, but we like Harvard’s proximity.




       © 2010 F. Randall Farmer  Bryce Glass
Won’t that be expensive?




 © 2010 F. Randall Farmer  Bryce Glass
We’ll make tradeoffs if we have to — it’s worth it for my
                        little girl!




                 © 2010 F. Randall Farmer  Bryce Glass
Reputation Defined




             © 2010 F. Randall Farmer  Bryce Glass
The Reputation Statement




             © 2010 F. Randall Farmer  Bryce Glass
Bill  Robert’s Entire Conversation (and Meal!) Are
Made of Reputation Statements




                  © 2010 F. Randall Farmer  Bryce Glass
People reputation is Karma, and it is special
    Karma is user reputation within a context
    Karma is useful for building trust between users, and between a user and the site
    Karma can be an incentive for participation and contributions
    Karma is contextual and has limited utility globally.
    Karma comes in several flavors - Participation, Quality and Robust
    Karma is complex (via indirect evaluations), and formulation is often opaque
    Personal karma is displayed only to the owner, good for measuring progress
    Corporate karma is used by the site to find the very best and very worst users
    Public karma is displayed to other users, which makes it the hardest to get right
         It should be used sparingly
         It is hard to understand, isn't expected, and easily confused with content
          ratings.
         It shouldn't be have a socially negative value.
         It encourages competition in some users, and may discourage others.


                               © 2010 F. Randall Farmer  Bryce Glass
Reputation is…
 … information used to make a value judgment
         about an object or a person.




                    … everywhere!



       … hard, but karma is harder!


                 © 2010 F. Randall Farmer  Bryce Glass
One Karma To Rule 
    Them All!




      © 2010 F. Randall Farmer  Bryce Glass
Global Karma? We need it, Right?




              © 2010 F. Randall Farmer  Bryce Glass
Case Study: FICO as Global Karma




             © 2010 F. Randall Farmer  Bryce Glass
Lots of Little Karmas vs. One Big Score




               © 2010 F. Randall Farmer  Bryce Glass
So…

        One Karma To Rule
            Them All!


      Reputation is always in context!




            © 2010 F. Randall Farmer  Bryce Glass
All I Need Is Five Stars


… Or Thumbs Up
… Or ‘Digg-style’ Voting
… Or a ‘Like’ Button

        © 2010 F. Randall Farmer  Bryce Glass
Interface-First Design




               © 2010 F. Randall Farmer  Bryce Glass
One of these things is not like the others…




                 © 2010 F. Randall Farmer  Bryce Glass
Consider YouTube




            © 2010 F. Randall Farmer  Bryce Glass
Look Familiar?




   http://youtube-global.blogspot.com/2009/09/five-stars-dominate-
   ratings.html




                       © 2010 F. Randall Farmer  Bryce Glass
“Great videos prompt action; anything
less prompts indifference. Thus, the
ratings system is primarily being used
as a seal of approval, not as an
editorial indicator of what the
community thinks about a video.”
                 — Shiva Rajaraman, Product Manager




           © 2010 F. Randall Farmer  Bryce Glass
Evolution too far? Like and Dislike




               © 2010 F. Randall Farmer  Bryce Glass
Do You Need a Downvote?




        From How To Build Dioramas by Sheperd Paine




               © 2010 F. Randall Farmer  Bryce Glass
So…


      All I Need Is Five Stars?	





        © 2010 F. Randall Farmer  Bryce Glass
Instead…

    Let the Context Determine the Inputs



   Be Sparing — Ask for Only What You Need



           Downplay the Downvote

              © 2010 F. Randall Farmer  Bryce Glass
Competition is Always Good!




         © 2010 F. Randall Farmer  Bryce Glass
“We built a point system into
Consumating because we thought giving
direct feedback to people about their
conduct on the site would encourage
them to be nice to one another—you get
a thumbs up when you are nice (treat!),
and a thumbs down when you are a
douche (electric shock!)”
                           — Ben Brown, Internet Rockstar

           © 2010 F. Randall Farmer  Bryce Glass
The Competitive Spectrum




             © 2010 F. Randall Farmer  Bryce Glass
So…

 Competition is fine if the context calls for it



      Don’t assume competition where there is
                     none.



Competition for Karma will generally escalate.


                © 2010 F. Randall Farmer  Bryce Glass
Negative Karma Will Out the Bad
             Guys




            © 2010 F. Randall Farmer  Bryce Glass
The Good Guys and The Bad Guys




             © 2010 F. Randall Farmer  Bryce Glass
Cautionary Tale: A Virtual Mafia Shakedown




               © 2010 F. Randall Farmer  Bryce Glass
Cautionary Tale: A Virtual Mafia Shakedown




               © 2010 F. Randall Farmer  Bryce Glass
Cautionary Tale: A Virtual Mafia Shakedown




               © 2010 F. Randall Farmer  Bryce Glass
Karma Meaninglessness and Bankruptcy




               © 2010 F. Randall Farmer  Bryce Glass
Private Karma: Yahoo! Answers Case Study




     Metric              Baseline                Goal               Result   Improvement
 Mean time: from
                          18 hours               1 hour
Report to Removal                                                      ?          ?

 Report evaluation
                             10%                  10%
    error rate                                                         ?          ?

                             100%                 10%
                                                                       ?
Customer care costs   $1 million per year   $100,000 per year                     ?



            Yahoo! Answers community content moderation system results
                                   © 2010 F. Randall Farmer  Bryce Glass
Private Karma: Yahoo! Answers Case Study




     Metric              Baseline                Goal               Result          Improvement
 Mean time: from                                                                       120x goal
                          18 hours               1 hour            30 seconds
Report to Removal                                                                    2000x baseline

 Report evaluation
                             10%                  10%                0.1%          100x goal/baseline
    error rate

                             100%                 10%                0.1%              10x goal
Customer care costs   $1 million per year   $100,000 per year   $10,000 per year     100x baseline
                                                                                    Saved $990,000/yr


            Yahoo! Answers community content moderation system results
                                   © 2010 F. Randall Farmer  Bryce Glass
So…

Karma is Complex (built of indirect inputs)



          Public Karma is Positive Karma



      ???? Karma Will Out the Bad Guys	



                © 2010 F. Randall Farmer  Bryce Glass
Karma is Complex (built of indirect inputs)



        Public Karma is Positive Karma



   Secret Karma can Out the Bad Guys


              © 2010 F. Randall Farmer  Bryce Glass
The Missteps, Corrected…
          “It’s the People, Dummy”
                 Reputation is information used to make a value judgment about an object or a person.
                 Reputation is everywhere!
                 Reputation is hard, but karma is harder!
          “One Reputation to Rule Them All”
                 Reputation is always in context.
          “All I Need is Five Stars”
                 Let the context determine the inputs.
                 Be sparing – ask only for what you need.
                 Downplay the downvote.
          “Competition is Always Good”
                 Reputation competition is fine if the context calls for it
                 Don’t assume competition where there is none
                 Competition for karma will generally escalate
          “Negative Karma Will Out the Bad Guys”
                 Karma is complex (built of indirect inputs)
                 Public karma is positive karma.
                 Secret negative karma can out the bad guys



                                        © 2010 F. Randall Farmer  Bryce Glass
How Product Managers can cope with Web
Reputation Systems

    Many reputation models for different needs
         Check out http://buildingreputation.com and/or
          get a copy of the book!

    Choosing poorly can have a disastrous impact on
     your product’s success!
         But you now have some tools for avoiding the
          worst problems!


                      © 2010 F. Randall Farmer  Bryce Glass
Any Questions?




             © 2010 F. Randall Farmer  Bryce Glass

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Web Reputations and Social Media Landmines

  • 1. Web Reputations (Avoiding Social Media Landmines in PM) F. Randall “Randy” Farmer
  • 2. Also available free on the companion blog wiki at http://buildingreputation.com © 2010 F. Randall Farmer Bryce Glass
  • 3. Why Web Reputation Matters to Product Managers   Increasingly cropping up on your B2C and B2B roadmaps – because it creates value   Many reputation models for different needs   But, Choosing poorly can have a disastrous impact on your product’s success! © 2010 F. Randall Farmer Bryce Glass
  • 4. 5 things we get wrong about reputation   “It’s the People, Dummy”   “One Reputation to Rule Them All”   “All I Need is Five Stars”   “Competition is Always Good”   “Negative Karma Will Out the Bad Guys” © 2010 F. Randall Farmer Bryce Glass
  • 5. © 2010 F. Randall Farmer Bryce Glass
  • 6. A conversation… Hi! Bill! How’s the family, Robert? © 2010 F. Randall Farmer Bryce Glass
  • 7. Our Wendy will be going to Harvard next year! © 2010 F. Randall Farmer Bryce Glass
  • 8. Really! I’m curious — why Harvard? © 2010 F. Randall Farmer Bryce Glass
  • 9. Why, it has the best reputation—especially for law. © 2010 F. Randall Farmer Bryce Glass
  • 10. Did she consider Yale? © 2010 F. Randall Farmer Bryce Glass
  • 11. Yes, but we like Harvard’s proximity. © 2010 F. Randall Farmer Bryce Glass
  • 12. Won’t that be expensive? © 2010 F. Randall Farmer Bryce Glass
  • 13. We’ll make tradeoffs if we have to — it’s worth it for my little girl! © 2010 F. Randall Farmer Bryce Glass
  • 14. Reputation Defined © 2010 F. Randall Farmer Bryce Glass
  • 15. The Reputation Statement © 2010 F. Randall Farmer Bryce Glass
  • 16. Bill Robert’s Entire Conversation (and Meal!) Are Made of Reputation Statements © 2010 F. Randall Farmer Bryce Glass
  • 17. People reputation is Karma, and it is special   Karma is user reputation within a context   Karma is useful for building trust between users, and between a user and the site   Karma can be an incentive for participation and contributions   Karma is contextual and has limited utility globally.   Karma comes in several flavors - Participation, Quality and Robust   Karma is complex (via indirect evaluations), and formulation is often opaque   Personal karma is displayed only to the owner, good for measuring progress   Corporate karma is used by the site to find the very best and very worst users   Public karma is displayed to other users, which makes it the hardest to get right   It should be used sparingly   It is hard to understand, isn't expected, and easily confused with content ratings.   It shouldn't be have a socially negative value.   It encourages competition in some users, and may discourage others. © 2010 F. Randall Farmer Bryce Glass
  • 18. Reputation is… … information used to make a value judgment about an object or a person. … everywhere! … hard, but karma is harder! © 2010 F. Randall Farmer Bryce Glass
  • 19. One Karma To Rule Them All! © 2010 F. Randall Farmer Bryce Glass
  • 20. Global Karma? We need it, Right? © 2010 F. Randall Farmer Bryce Glass
  • 21. Case Study: FICO as Global Karma © 2010 F. Randall Farmer Bryce Glass
  • 22. Lots of Little Karmas vs. One Big Score © 2010 F. Randall Farmer Bryce Glass
  • 23. So… One Karma To Rule Them All! Reputation is always in context! © 2010 F. Randall Farmer Bryce Glass
  • 24. All I Need Is Five Stars … Or Thumbs Up … Or ‘Digg-style’ Voting … Or a ‘Like’ Button © 2010 F. Randall Farmer Bryce Glass
  • 25. Interface-First Design © 2010 F. Randall Farmer Bryce Glass
  • 26. One of these things is not like the others… © 2010 F. Randall Farmer Bryce Glass
  • 27. Consider YouTube © 2010 F. Randall Farmer Bryce Glass
  • 28. Look Familiar? http://youtube-global.blogspot.com/2009/09/five-stars-dominate- ratings.html © 2010 F. Randall Farmer Bryce Glass
  • 29. “Great videos prompt action; anything less prompts indifference. Thus, the ratings system is primarily being used as a seal of approval, not as an editorial indicator of what the community thinks about a video.” — Shiva Rajaraman, Product Manager © 2010 F. Randall Farmer Bryce Glass
  • 30. Evolution too far? Like and Dislike © 2010 F. Randall Farmer Bryce Glass
  • 31. Do You Need a Downvote? From How To Build Dioramas by Sheperd Paine © 2010 F. Randall Farmer Bryce Glass
  • 32. So… All I Need Is Five Stars? © 2010 F. Randall Farmer Bryce Glass
  • 33. Instead… Let the Context Determine the Inputs Be Sparing — Ask for Only What You Need Downplay the Downvote © 2010 F. Randall Farmer Bryce Glass
  • 34. Competition is Always Good! © 2010 F. Randall Farmer Bryce Glass
  • 35. “We built a point system into Consumating because we thought giving direct feedback to people about their conduct on the site would encourage them to be nice to one another—you get a thumbs up when you are nice (treat!), and a thumbs down when you are a douche (electric shock!)” — Ben Brown, Internet Rockstar © 2010 F. Randall Farmer Bryce Glass
  • 36. The Competitive Spectrum © 2010 F. Randall Farmer Bryce Glass
  • 37. So… Competition is fine if the context calls for it Don’t assume competition where there is none. Competition for Karma will generally escalate. © 2010 F. Randall Farmer Bryce Glass
  • 38. Negative Karma Will Out the Bad Guys © 2010 F. Randall Farmer Bryce Glass
  • 39. The Good Guys and The Bad Guys © 2010 F. Randall Farmer Bryce Glass
  • 40. Cautionary Tale: A Virtual Mafia Shakedown © 2010 F. Randall Farmer Bryce Glass
  • 41. Cautionary Tale: A Virtual Mafia Shakedown © 2010 F. Randall Farmer Bryce Glass
  • 42. Cautionary Tale: A Virtual Mafia Shakedown © 2010 F. Randall Farmer Bryce Glass
  • 43. Karma Meaninglessness and Bankruptcy © 2010 F. Randall Farmer Bryce Glass
  • 44. Private Karma: Yahoo! Answers Case Study Metric Baseline Goal Result Improvement Mean time: from 18 hours 1 hour Report to Removal ? ? Report evaluation 10% 10% error rate ? ? 100% 10% ? Customer care costs $1 million per year $100,000 per year ? Yahoo! Answers community content moderation system results © 2010 F. Randall Farmer Bryce Glass
  • 45. Private Karma: Yahoo! Answers Case Study Metric Baseline Goal Result Improvement Mean time: from 120x goal 18 hours 1 hour 30 seconds Report to Removal 2000x baseline Report evaluation 10% 10% 0.1% 100x goal/baseline error rate 100% 10% 0.1% 10x goal Customer care costs $1 million per year $100,000 per year $10,000 per year 100x baseline Saved $990,000/yr Yahoo! Answers community content moderation system results © 2010 F. Randall Farmer Bryce Glass
  • 46. So… Karma is Complex (built of indirect inputs) Public Karma is Positive Karma ???? Karma Will Out the Bad Guys © 2010 F. Randall Farmer Bryce Glass
  • 47. Karma is Complex (built of indirect inputs) Public Karma is Positive Karma Secret Karma can Out the Bad Guys © 2010 F. Randall Farmer Bryce Glass
  • 48. The Missteps, Corrected…   “It’s the People, Dummy”   Reputation is information used to make a value judgment about an object or a person.   Reputation is everywhere!   Reputation is hard, but karma is harder!   “One Reputation to Rule Them All”   Reputation is always in context.   “All I Need is Five Stars”   Let the context determine the inputs.   Be sparing – ask only for what you need.   Downplay the downvote.   “Competition is Always Good”   Reputation competition is fine if the context calls for it   Don’t assume competition where there is none   Competition for karma will generally escalate   “Negative Karma Will Out the Bad Guys”   Karma is complex (built of indirect inputs)   Public karma is positive karma.   Secret negative karma can out the bad guys © 2010 F. Randall Farmer Bryce Glass
  • 49. How Product Managers can cope with Web Reputation Systems   Many reputation models for different needs   Check out http://buildingreputation.com and/or get a copy of the book!   Choosing poorly can have a disastrous impact on your product’s success!   But you now have some tools for avoiding the worst problems! © 2010 F. Randall Farmer Bryce Glass
  • 50. Any Questions? © 2010 F. Randall Farmer Bryce Glass