Tsu is a new company aiming to revolutionize the way social media sites do business. Visit tsu.co and read this interesting New York Times article by Anna North, parts of which we've excerpted below, to see exactly how they're trying to change the social media game.
Asked about the inspiration for Tsu, the social network he’s just launched, Sebastian Sobczak doesn’t immediately mention Facebook or Twitter. Instead, he talks about Ed O’Bannon.
Mr. O’Bannon, a former U.C.L.A. basketball player, sued to challenge N.C.A.A. rules banning athletes from making money from their own images — in August, the Supreme Court decided in his favor. And for Mr. Sobczak, he’s a sort of personification of Tsu’s ethos: People should get paid for the content they produce.
While Facebook and Twitter have been criticized for failing to share their profits with those who post on their platforms, Tsu pledges to do just that: It will give 90 percent of its ad revenue back to users.
Tsu’s philosophy is that “all content creators, which is basically every social user, should receive royalties for the commercial use of their image, likeness and work,” Mr. Sobczak told Op-Talk. “They essentially do all the work, they should get rewarded with the lion’s share.”
“What people don’t realize is how much value is created by these platforms on the backs of basically everybody’s networking,” he said.
“It’s the exact analogy to the N.C.A.A. If the N.C.A.A.’s going to be paid hundreds of millions of dollars by gaming companies using Tim Tebow or Ed O’Bannon,” he added, then “you gotta pay the guys!”
Tsu plans to pay users not only for its content, but also for its ability to bring in more people. Each user gets a unique code that allows him or her to invite others to the site. And after Tsu takes its 10 percent cut, it gives half of each post’s revenue to the user who posted it — the remainder gets divided up among the users that person invited, the users those users invited, and so on, the share diminishing with each remove from the original poster. So even if your posts aren’t generating much revenue, or if you’re not posting much, you can still make some money from the posts of the people you know. “If you brought value to the system” by inviting someone whose posts get a lot of attention, said Mr. Sobczak, “you’re actually rewarded for that.”