Micropatronage is where individuals directly support the work of others through voluntary monetary contributions. It is in essence crowdsourcing funds, gathering small amounts from a large group of people rather than relying on sponsorship from a few. The individual makes a judgement of value on a service, product or event and then contributes finances according to the value and/ or benefit they attach to it – which may be dependent upon experience, quality, social or professional value, or even simply what is affordable at that moment.
My first experience with the concept of micropatronage was approximately 5 years ago at the restaurant Lentil as Anything in Melbourne. In this restaurant the customer decides what they want to pay for the food and drinks they’ve consumed. The customer then puts their donation anonymously into a box at the counter. I have been to Lentil as Anything a number of times over the years and more often than not patrons are generous and often pay above the perceived worth – primarily due to the social good and community values the restaurant promotes.
Another very recent example of micropatronage was Trampoline held last weekend where post event people were asked to donate to assist in covering costs for the event (and incidentally received more than they required and donated the rest to continue other socially minded projects).
A different example is Joanne Spain who has started a personal micropatronage campaign on her website to raise funds for an iPhone (with validated reasoning!). After just one day Joanne has raised 12% of the funds she requires.
The examples of Trampoline and Joanne’s iPhone are open to all to contribute, not just to participating or personally invested people but to all those who believe in the cause, regardless of personal benefit.
The world of finance and payment systems is obviously changing – where people are courageous enough to ask for support via voluntary monetary contributions and where individuals and/or the community determine value and perceived worth by what they pull out of their wallet (or more appropriately what they transfer online!).
These ideas appeal to the good in all of us – it is mutually beneficial. We get something out of it, either a tangible or intangible return on investment but in addition we also get the added value of warm fuzzies that we have done something socially good.
I have to admit these concepts have been on my mind in the last week or so as I have been conflicted with wanting to return to university to study a Masters in Design (Communication Design) at Swinburne University. The cost of the degree is $22 000 which makes feasibility an issue as my current HECS debt already resembles the most part of a house deposit! In brainstorming potential finance opportunities I worked out that if all of my Twitter followers (including spam bots!) donated $35 the cost of my degree would be covered. Per semester it sounds even nicer, just $5.50 per follower.
This brings me to the real issues and questions of micropatronage in this kind of circumstance:
1. Value: Why would people give money to me?
2. Ethics: How could I ask people to donate money to me rather than a more community focused, social and charitable cause?
3. Courage: Do I have the courage to ask?
I had lunch with Joanne Spain yesterday and discussed these ideas with her. Her responses were thought provoking and insightful.
Value: why would anyone give me money?
Joanne argued that she would be happy to pay a small sum of money in return for a ‘personal subscription to me’ and also as support for the value she has found in my content (ie tweets and blog) to date. Another friend said that they would also be happy to invest, saying if they got to benefit from my experience and learnings whilst studying – in whatever form that may be – it would be a worthy investment. And so the concept shifts – it does not become giving money to me but a transaction in which you contribute according to the value you put on my content. If you like what I share and write then it is in your interest to support my journey in learning as your investment will no doubt be returned with considerable (albeit intangible) interest. The question becomes what value would you put on having a ’subscription to me’?
Ethics: Me or a charity?
This is the really hard justification for me. For example current worthy causes on Twitter I saw yesterday: Movember, supporting Andrew Blanda in his Sydney to the Gong Bike Ride for MS and supporting Inspire Foundation by buying The Perfect Gift for a Man book by Gavin Heaton and Mark Pollard. All are very worthy of support.
How could I ask for financial support when there are worthy causes like these? After all I am a middle class DINK with a good job, mortgage and great people around me. That does not seem like a charitable cause – but is it worthy of investment instead? Joanne and I discussed how much time you naturally give away to others sharing knowledge, giving advice, helping in everyday circumstances. As well, the community value and social good may not be immediate but the future intention to give back is there. And so the investment is to support past and future practices. This returns to the notion of investment over charity or donation and your perception of return on investment for a subscription to me.
Courage: Will I ask?
The idea that micropatronage is more about investment makes me feel more comfortable with the idea that if someone provides some financial support to my education they will benefit from my learning experience. From supporting me they can get some return through observing and participating in my journey via social avenues (both on and offline).
The idea that my education would be for the collective rather than just personal good also sits well. It would increase the motivation for studying being accountable to a group of people rather than just myself.
So from a value prospect and from an ethical viewpoint (keeping charity and investment very separate) the idea of micropatronage for my degree seems sound. But courage? I do not have the courage to ask. I cannot reconcile myself with competing against much worthier causes out there.
Applications for the degree close in February so I have three months to consider options. And so I ask you:
What do you think of micropatronage?
What are you willing to contribute to?
What do you think of crowdsourcing contributions for my further study?
Zaana Howard = knowledge management, design thinking, innovation, creativity in the workplace, social learning, social media, organisational effectiveness, design, artist & librarian
7 responses so far ↓
Micropatronage 2.0: the value, ethics and courage circle or the follow up « Scribbling on the sky // November 3, 2009 at 9:26 pm
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Mick Leyden // October 29, 2009 at 8:44 pm
This is an interesting topic that I have been thinking about a bit over the last couple of days. Like Marigo I am a strong supporter of microfinance systems that help people to achieve worthwhile aims and I am also left feeling a little odd with the idea of asking ‘the world’ for support with endeavours such as a new phone or a post grad degree.
From a market perspective the idea is fine. If there are people out there who find my tweets and blog interesting enough that they will help me pay for something I want, why wouldn’t I ask the price? After all in a free market we set the price at what people will pay.
I can justify this in purely theoretical terms. But when I come to thinking about actually asking ‘the world’ to give me something in return for stuff I was going to do freely anyway I just can’t sit with it. If I want a phone I’ll save my money and go buy one, if I want to do a masters (which I do in the next couple of years) I’ll find a way to pay for it. Why? Because these things are going to primarily benefit me.
On the other hand if I was going to undertake a masters in Web 2.0 then use the knowledge I had gained to help a variety of not for profit organisations who typically could not access this kind of consulting then I might feel comfortable to seek sponsorship. In asking to take something I am promising to give something back, otherwise I am just taking money that could be benefiting people who need it far more than me.
That said whether we like it or not knowledge has a price. I go to work for money not for love. I like my job, but I can promise you the minute they stop paying me I stop working. Which shows the inherent contradiction in my position. It is fine to ask for money sometimes but not others, I guess the individual decides which of those times is right for them.
Marigo Raftopoulos // October 28, 2009 at 6:21 pm
Re Joanne’s take on my comment:
My original reference was to community building where there is a free public exchange with no expectation of a tangible return. Usually this takes place in spaces where there is a net communal gain such as in open spaces and open networks. These values have always been with us and are not new.
In the commercial arena, a company justifies, for better or worse, ‘locking away IP’ (and not an easy thing to legally acquire, btw) to recoup private investment and risk which is usually substantial.
Maybe these companies are stuck in the 1.0 system because viable, alternative 2.0 business models and risk/return models are still very hard to come by? The 2.0 revolution is certainly here, however widespread systemic change in mainstream organisations always lags behind.
Joanne Spain // October 28, 2009 at 2:06 am
Zaana, such a well written post.
It is an interesting discussion and as we chatted about over lunch on Monday, there is an ethical argument to be had, especially with things such as phones and further education.
Fundamentally, whether it is financial or information / knowledge sharing that we are talking about, the key factor is values; values such as collaboration and sharing. So the point I raise is that whether it is financial value or intellectual value, the underlying principle is still the same. We are taking about collaborating and sharing.
I absolutely understand and agree that we live in a middle class and wealthier country than others, which, from where I sit makes this model even more exciting.
We live in an economy of abundance and combined with world 2.0 values of sharing, collaboration etc means that many of us have the capacity to help one another out.
Another point I raise is that of value exchange, I think that in world 2.0 we value so much more than financial gain. We value experiences, knowledge, insight, time etc. So whilst finance does still count as a value. I would argue that we see value a lot more broadly than we have before.
If sharing of knowledge and experience is human, intrinsic and intangible, then why do organisations lock it up, call it IP and attach a financial price to it? (i.e. when they charge out a consultant at an amount per hour or attach a financial price to a report or document).
Knowledge is a value; time is a value, as is a financial amount. I spend my time sharing my knowledge with whoever wants it or whoever is interested to read it. I spend my time developing my knowledge and creating original content that I publish and share, and even further to that, I spend money in pursuit of that knowledge.
To me, that equals me giving away “free” value as I do not seek anything in direct exchange for that value.
zaana // October 27, 2009 at 3:42 pm
Thanks Marigo. You bring up an important distinction – the difference between microfinance and micropatronage – where microfinancing is about helping the disadvantaged and less developed communities.
I completely agree with you – in theory micropatronage makes sense to me, especially for events and the like but micropatronage for personal gain (when I am so fortunate) I cannot reconcile myself to.
Marigo Raftooulos // October 27, 2009 at 3:26 pm
Thought provoking post Zaana.
I have been a spporter of microfinance projects in less developed communities for along time, and the real difference such finance makes to the poor & disenfranchised is truly astounding.
However financing phones & post-grad degrees of the middle class in wealthy countries leaves me cold. Community building and sharing of knowledge and experience is human, intrinsic and intangible, and to ask someone to put a price on it reduces it to a commodity.
» Micropatronage: value, ethics, and courage or would you pay for my postgraduate degree? // October 27, 2009 at 3:25 pm
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