Edgeio as it stands is pretty simple: You tag a post on your blog “listing” and Edgeio will spot it and add it to its data base. You add more tags (e.g., “for rent” and “vacation”) and your post/ad will appear in the appropriate categories. Edgeio will allow you to come in and claim your blog to be able to get direct communication from respondents and, eventually, to upgrade your ad via typography and graphics and preference (I hope I got that right). This is just a start but it is a proof of concept of a new world. I’ve been waiting for someone to do this. Arrington has.
I’ve been writing for a long time that the future of classified advertising — and more of media — is distributed. That is, you won’t need to go to a centralized marketplace — the newspaper or even Craigslist or Monster — to let the world know you want to sell or buy or find something. Instead, you’ll be able to put your listing up anywhere with proper tags and then specialized search engines, like Edgeio and Oodle, will find them so buyer and seller can find each other in a distributed marketplace with far less friction and far more control at the edges.
Note well that Arrington is also setting the early standards for tagging ads so they can be found. I believe that he also needs to concentrate on putting data within ads, not just on top of them (e.g., “languages spoken = German, C++”) so more effective searches and matches can take place. Google Base may do this, but for it to be effective, the tags need to be open. What we’re really headed for is microformats and a structure in which people swarm around tags with efficiency so they and their stuff can be found. It works in Flickr and Del.icio.us and will certainly work in marketplaces where money matters.
As friction is taken out of the marketplace — as newspapers, Realtors, car dealers, eBay, and others who have controlled our information are undercut by free and open standards — there is a need to add value back into transactions. Craig Donato of Oodle — the other Craig, the one who will cause more change in the newspaper industry than the first one — is eloquent on this, pointing out that the marketplace still wants such things as anonymity to enable transactions and authority to vet ads and promotion to market them. Edgeio and Oodle — not to mention Indeed and Simply Hired and even eBay and many other comers — will try to add back some of these functions. I argued the other day that we will also need some physical-world functions, like concierges to handle house tours for far less than real-estate agents charge (cue defense wailing by Realtors here.)
: OK, but this is bigger than classifieds. It’s bigger in two ways:
: First, this is really about control. Realtors and multiple-listing services act as if they own our for-sale listings. But the truth is, that’s our information; it’s data we create and we own that we lend to these agents if they perform a service for us (or because they hold a monopoly on that service today).
I was talking about this with Seth Goldstein of AttentionTrust and Rootmarkets the other day: We own not just our attention data — what we look at, what we do, the things that Seth works in — but also have an even greater proprietary interest in the transactions we create. This holds if we are a prospect to buy a house and if we are selling a house.
The natural state of the marketplace should be that we control that information at the edges — buyer and seller — and that others join in that transaction only when and if they add value, such as the functions I listed just above. This will make for less friction and a more efficient marketplace.
It will also make for a lot of unemployed middlemen. The newspapers and Realtors that charged us too much for too little for too long will be knocked aside at the first opportunity.
: Second, this is also about content … and about people. Everything Edgeio does for classified ads, it — or someone — could do for, say, local restaurant reviews. Rather than relying on one restaurant critic for a paper to tell us what’s good and rather than trying to get all the diners out there to come to a centralized marketplace of reviews (see the late Abuzz et al), we should be able to write our reviews on our blogs, under our identities, and have them found with all the other reviews. That can occur thanks to tagging. This is what I hoped (incorrectly) that Dinnerbuzz would do, though I explained my wishes here.
It’s about people because identity matters: We want to know who is reviewing the restaurant or selling the house or seeeking the job. Verified identity and trust, I believe, will be the next huge frontier of business online. More on that later.
And it’s about people because such means of tagging and searching as Edgeio enables will also help people find each other. I wrote about this long ago, inspired by David Galbraith’s one-line-bio tag. See also Consumating.org, where people tag themselves.
See, this tagging thing is about more than bookmarks and coolness. They help reorganize the world and its relationships.
That’s why I say that Edgeio is a big deal, because it begins to enable this new world.
: [DISCLOSURE: Michael Arrington and I are each aiding a startup. I gave him my two-cents about Edgeio. He once gave me a Techcrunch T-shirt. We link to each other. He held a spot for me at the lunch table at Web 2.0 And aren’t these disclosure statements getting a bit ridiculous?]
: SPEAKING OF TECHCRUNCH: I see that Arrington will critique presentations by 10 companies at Supernova.
: LATER: Note good comments, including one from none other than Craig Newmark.