A Story Is A Deal

The history of the internet is littered with advances that were designed to make websites more functional, but ultimately became mechanisms to play status games. eBay encouraged buyers and sellers to leave feedback on each other as a way of increasing trust. Reddit's 'karma' system was for reducing spam and bot activity. Both became ways of signalling status. Perhaps the most consequential mechanism of all, though, is Facebook's "like” button.

The early online shared-realities were designed for connec-tion. They succeeded partly because humans are wired to enjoy connecting with people-like-us. But the technologists weren't expecting their users to also seek the second resource that humans desire and need and forge wherever they go. The seismic power of social media would only truly become unleashed when users were given tools by which to play status games.

Since the 1980s, by a process of experimentation, luck, error and instinct, technologists have discovered the four rules of effective digital-status games: I. Create a shared reality where people-like-us want to connect. II. Design a simple status game mechanism with publicly visible rewards. III. Get your incentives right. IV. Make rewards unpredictable.

One bonus you get from having an enemy is a very clear marketing message. People are stoked by conflict. And they also understand a product by comparing it to others. With a chosen enemy, you're feeding people a story they want to hear. Not only will they understand your product better and faster, they'll take sides. And that's a sure-fire way to get attention and ignite passion.

researchers found recognition to be most effective when it's frequent, fair and authentic. • Frequent: it should be normal for senior management to offer praise for excellence. Recognition should be an ordinary part of the working culture. • Fair: praise should be on the basis of an individual or team clearly following the rules of the organisation's status game, and thus furthering its mission. It should be obvious to everyone why the praise was offered. The perception of favouritism or scapegoating should be prevented from metastasising. • Authentic: to feel authentic, recognition should be personal, specific and offered in a timely manner. Researchers find that praise for 'minimal action' actually reduces motivation.