Business News What is “social currency” and why is it so...

What is “social currency” and why is it so important

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Social currency is a very popular term in recent days on social media, however, the concept is much older. It refers to the value that information has when it is shared between individuals, and something is considered to have good social currency when people want to continue sharing it.

Gossip is the best example of social currency, that is, people share rumors with their friends, these in turn share them with their friends and so it spreads like wildfire.

This is the kind of exchange that also defines who we are. We collect the habits, thoughts and actions of those with whom we spend time. If we surround ourselves with workers, we tend to adopt their hard work ethic. If we surround ourselves with people who complain, we will have a more pessimistic perspective of the world, this is what science affirms.

Humans have basic needs and sharing and interacting is one of them, hence the social currency is a reality that can be used for better or for worse. As we already said, for something to be shared it must provide some value, here we will share the four types of value and we will delve into it.

Four types of value

The most important component of social currency is personal worth. But personal value can be divided into four more types of value: utility, knowledge, entertainment, and monetary.

Utility

It literally refers to something that might be useful, from a how-to guide to explaining the usefulness of the brand itself.

To have this value, brands must create things that provide a tangible and useful benefit to users, such as banks that offer applications that allow users to compare different interest rates.

Knowledge

Something can be shared when it provides knowledge within a group. For example, people are presented with content and immediately remind their friend or family member that they need to access that content from a past conversation they have had.

This applies to a financial report, a cooking recipe, a home remedy, etc. The people who share their knowledge are valuable members of a community, that makes them rewarded with personal courage.

Entertainment

This is said to be the oldest social currency. If we analyze it, people more easily share things that are for entertainment than knowledge (before much more limited than now in terms of the distribution of information) and usefulness.

A joke, an urban legend, an assumption or a gossip, that is to say, everything that generates a certain pleasure to the eyes and ears is quickly shared.

This is why funny videos, memes, etc. they are shared a lot on social networks and a friend will probably go to the trouble to send it to you in a private message. And when you share an entertainment content or object of value, you gain importance within the group.

Monetary

They are the value that represents a profitable or monetary benefit for the person. Information on discounts, guides on budgets or how to save, etc. they may be within this value, but they cannot be delivered on their own.

They are often camouflaged within entertainment content such as infographics, videos, illustrations, etc.

If the content you share is not entertaining or useful if you do not share knowledge or provide a monetary benefit to users, rest assured that people will not share it. What you have to identify is what social currency your brand offers.

Keys to success

By developing your social currency you can get closer to living an entrepreneurial life. Here are some keys to success.

Develop your brand

You have to attract certain types of people based on your brand and the way you build your brand can influence the self-value that you present to others. There are many ways to develop your brand, but the easiest could be by changing your circle of influence. This can develop your brand in three different ways:

  • Define how you interact with others because as you surround yourself with people who live the lifestyle of your brand or work style, you will be able to associate yourself with new ideas, projects, etc.
  • The more time you spend with like-minded people (entrepreneurs, entertainment experts, IT developers, or anyone who applies) the more likely you are to grasp the subtleties that make them unique. This will fuel the spirit of your own brand and entrepreneurship.
  • The content you produce, from advertising to what is written on your blogs, must correspond to your brand.

Your circle of influence

Your circle of influence will be the best way to increase your social value, the higher quality your social circle has, the more social currency you will have. You are responsible for expanding and maintaining a quality influence circle.

You must do it on your own, maintain a personalized contact and work hard to get the connections you need.

Content to maximize value

An important factor that determines your social value is the content you produce. Content can be almost anything from a business you create to a blog post you write.

The better the content you produce, the more people will respond to you. This, in my opinion, is the real key to growing your social currency.

It is not an easy task to develop quality content (be it a product or a video blog) but this is the real key to success. It takes a lot of hard work, time, and dedication.

Ben Pence
Ben Pence is a The Advertiser Mirror correspondent who covers politics, business, money, lifestyle, technologies and worldwide news. Ben is a talented guy of 22 years old who loves to write and record Podcasts as a part of his ideal to inform people about news and opinions.

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