Personal Economic Neighborhoods

Discussion

Venkatesh Rao rejects the 1000 True Fans Model and favours a 12-150 model:

“By carefully curating your Dunbar neighborhood of at most 150 (in practice, likely much less), in collaboration with your crucible of 12 (each curating their own 150-neighborhoods, with a good deal of overlap), through actual personal attention, you create the foundation for your life as a cultural creative and information worker. Free agency is an important piece of this, but don’t dismiss traditional economics: a good part of your 150 is likely to remain inside the formal organizations you are part of.

The Kelly number, 1000, is important, but not in his sense. If you and your crucible of 12 are creating value in a loose coalition, and each have a 150 circle with some high-value overlap, the total is probably near 1000. So that’s 12 people sharing a community of 1000, each of whom gets personal attention from at least 1 of the 12. The members of the 1000 get the overhead savings of finding more than 1 useful, personally-attentive creator in one place.

Count the 12 most valuable co-creators you work with. Now consider the overlap in your Dunbar neighborhoods. If the average level of overlap isn’t in the double digits (the actual set-theoretic math is tricky), you probably haven’t reached critical mass yet. Guess where you can still find such critical mass today? Inside large corporations. Any pair of people in my immediate workgroup of around 12 can probably find 20-30 common acquaintances. Our collective personalized-attention audience at is probably around 1000. Large corporations still allocate collective attention pretty badly (they hit the numbers, but get the composition wrong), but still do a better job than say, the blogsphere. But the free-agent nation is catching up rapidly. The wilderness is becoming more capable of sustaining economics-without-borders-or-walls every day.

So how will you create and monetize your Dunbar neighborhood? By definition, there are no one-size-fits-all answers, because the point of working this way is that you’ll find opportunities through personalized attention. Not a great answer, I know, but still easier for most of us than dreaming up ideas that can net 100,000 regulars of whom 1000 turn into raving fans.” (http://www.ribbonfarm.com/2009/07/21/the-crucible-effect-and-the-scarcity-of-collective-attention/)