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What is Digital Sharecropping

November 22nd, 2017
November 22nd, 2017 Conecta Software

When investing in an online store, you should consider the concept of digital sharecropping, or digital sharecropping. What is it and how do you reduce the danger involved?

 

The first questions about an online store

 

When we start an ecommerce project, some of the first questions we ask are

  • How to update prices
  • How to Update Stock
  • How to appear first on Google
  • How to get customers on Facebook

 

The first two questions are easily solved thanks to our connector - ConectaShop.

The other two questions require knowledge of SEO y Marketing and a strategy plan.

 

SEO with WordPress

Our corporate website design y online retailers is based on search engine optimization and user experience.

The number of WordPress templates increases every year. Recent designs often have the technical side of optimization as a default. Knowing the principles of optimization allows you to get the most out of your templates.

As a result, this allows us to spend more time on Content of the web.

Social Networks, such as Facebook, are an additional channel of dissemination to attract customers and do branding.

Digital Marketing in Social Networks

 

Basing the business model excessively on a particular search engine, such as Google, or a social network, such as Facebook, has both advantages and disadvantages.

This is what the Digital sharecropping.

 

What is Digital Sharecropping

 

Sharecropping translates to sharecropping.

According to Nicholas Carra renowned thinker in the field of technology, culture and business and author of "Superficial: What is the Internet doing to our minds

"Digital sharecropping is the most interesting and disturbing economic phenomenon produced by the Internet."

The SAR defines sharecropping like

  1. f.Treatment or agreement of those who go to the party in a farm.
  2. f.Der. Mixed contract, which participates in that of society applied to the lease of rural properties, and which is concluded with a great variety of supplementary agreements and customs between the owner and the cultivator of the land.
  3. f.Der. Partnership contract, attached to the sharecropping of rural properties or independent of it, to distribute products or benefits of the livestock between the owner of the livestock and the one who takes care of it or breeds it.
When we talk about digital partnership, we refer to the dangers of building an online presence on a platform that does not belong to us. Click To Tweet

 

In 2006, Nicholas Carr writes the following about the two economies of digital partnership

One of the fundamental economic characteristics of Web 2.0 is the distribution of production in the hands of the many and the concentration of economic rewards in the hands of the few.

It is not the content itself, but the economic value of the content. Digital platforms give us the tools of production and keep the content produced.

The ARPU (average revenue per user) on Facebook was $1.21 in 2012, when Carr's article was published. It is not a large amount that Facebook earns from the content contributed by each user. It isn't, as long as you don't count the number of users this platform has.

 

Source: The economics of digital sharecropping

 

 

Google and Facebook, the magic recipe?

Search engine optimization aims at a good positioning and attraction of organic traffic, which is the opposite of advertising, to the website.

Google has positioned itself as the main search engine in Spain. Its algorithms are therefore the main indicator guide for optimizing our website.

However, the business model should not depend only of the organic traffic.

Nor only of traffic received from social networks

User interactions and shared content on a social network do not belong to the company, even if it has a company profile. They belong to the platform on which they are published, whether it's Facebook, Instagram or Google+.

 

Both search engines and social networks

  • They can block the profile, change algorithms and advertising policies
  • On the other hand, they can lose users, become irrelevant and close the platform

 

None of this is in the hands of the business. It has no control over changes in the algorithms employed by the platforms.

You can only keep up with the changes and adjust your strategy.

 

The solution lies in diversification

The investment in digital platforms can be compared to the rent of a local. We chose a well located one for the type of business.

If the rent goes up or the area gets worse, we'll find another place. We don't wait for the building to collapse and with it, our business.

Having "several premises", to take the metaphor further, allows a strategic and agile movement to face changes and take advantage of new opportunities.

 

 

 

 

 

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Proyecto Cofinanciado por el Fondo Europeo de Desarrollo Regional. Beneficiario: Conecta Software Soluciones SLU. Nº expediente: EATIC2019010001. Inversión Aprobada: 173.800,00 €. Comienzo: 01/04/2019. Finalización: 30/09/2020. El presente proyecto tiene como objetivo el desarrollo de una capa de usuario multilingüe y dashboards para entornos web y windows de solución de Business Intelligence.

Project co-financed by the European Regional Development Fund. Beneficiary: Conecta Software Soluciones SLU. File number: PI2019010001. Approved Investment: 6,444.80 Start date: 17/10/2018. Completion: 16/10/2019. The present project aims at developing a connector software that automates the generation of virtual catalogues so that the company can offer in its Online Store products with a wide description and with images that make the user experience richer and more complete.

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