Tsu is not a scam or a pyramid scheme

Recently Jon Dunn on Tsu pointed out that some Google searches implied that Tsu was a bit dodgy.

I think the other results relate to Texas Southern University.

The definition of a pyramid scheme is that you use money paid in by some people to pay others, so that it will eventually collapse when people realise they will never get paid. It's a scam rather than a business.

I think this idea is due to a misunderstanding of how the Tsu algorithm works. It's true that people get paid based on what those they recruit make, but none of them needs to pay in any money. All the revenue comes from the advertising on the site and in the app (available on Android and iOS). The company is taking 10% to cover their costs, but still has some way to go before they are profitable.

The fact is that people are getting paid just about every day. Some of them post pictures of the cheques they have received to encourage others. The biggest I've seen is this one by songwriter Andrew Fromm.

He's by no means a typical user as his contacts in the music industry means he could recruit people who can easily grow a large network. He has 29,000 followers himself, so he can earn many dollars a week from his own views regardless. I know of many other people who have had hundreds of dollars from Tsu over the eight months since it started.

Personally I've made about $40 and I've given about half of that to charities on the service. There are about forty of those now and they seem to be doing well. The recent Tsu Madness event raised over $1000 that went to a wildlife charity. There are various events such as #FiveCentFriday that encourage regular giving. You can give as little as one cent, so just about anyone can donate.

It's still going to take me a while to get to $100 (threshold for a payout), but before then I may use some of my funds to buy some art from an artist on there. I've said before that the Tsu market has great potential and it seems to be taking off. It just needs a few more features to make life easier for those selling goods and services. The site is still evolving as they find their way.

The fly in the ointment is the fact that Tsu is not growing so fast of late. They have reached around four million users, but public statistics seem to indicate that fewer than 1 in 40 is visiting daily. I know a lot of my child accounts are dormant. Somehow they need to keep people engaged and actively recruiting. I think that some of the newcomers do not understand that they stand to benefit from getting their friends to join up and use the site. There is still massive growth potential, so it will be a long time before new users stand no chance of building a network. I've written about that too.

I'll keep using Tsu because it's fun. There are nice, friendly people there and we have a laugh. If I make a little extra money, then that's a bonus. As always, you can find me at http://www.tsu.co/steevc

Tsuper Powers

Being part of the Tsu Madness tournament has been a very positive experience for me. I had lots of support from people I don't know that got me through the first round, but in the second round I was up against BigFollowing who could muster more votes than me. I still did pretty well considering I'm just a regular user. This campaign has already raised twice as much as last time with over a week to go. The eventual winner gets to decide which charity gets all the money. Of course people are free to donate to any of the charities instead or as well. The scale of the charity donations on Tsu has greatly impressed me. People can choose to publicly display their donations and some are for many dollars.

I have benefited in the tournament by gaining a fair few new followers. I hope some of them will stick with me and engage in some discussion as that's what I'm there for. I also benefited financially as my views were way up and my daily 'monetization' has increased. I've passed on some of that extra money to the Tsu Madness fund.

My Tsu earnings

In my early days at Tsu it looked like I was not going to reach the payout threshold for years, but I've steadily built my following and network over the last 8 months so that it looks like I could get paid this year even if I continue to make charity donations. I do intend to spend some of it buying a picture from an artist who accepts Tsu Dollars as payment. There are a number of companies and individuals doing this now and some are listed on the Tsu Market. As I have said before, there is massive potential for this sort of commerce.

In the long term a large Tsu network of people you have recruited, and their recruits, should give a steady income as the membership increases, I'm starting to see that even though many of the people on my network are inactive. It's obviously good to get in early on this for maximum benefit. I do not consider this a 'multi-level marketing' scam as some critics have accused, Nobody has to pay anything to use the site. All the income is from the advertisers, with the Tsu company taking 10% to keep things running.

People ask how I have managed to gain so many Tsu 'children'. I've gained a lot via the tsumatic site where anyone can advertise their profile link for free. Now that you can make your profile truly public on the web people can review your posts before deciding whether to join up. I hope this will result in less dormant accounts where people only signed up to see what was there.

As always I am open to any questions about my experience on Tsu. I don't claim to be a social media expert, but I will always try to help. Of course you can check out my profile too.

Vote for me! It's Madness!

When I joined Tsu it was full of talk of how to maximise your money making and some people were busy trying to game the system. A lot of those people have been banned or gave up and it's now settled down into a nice place to be. One of the most impressive aspects has been the charity work. There are around 40 charities on there that each have a Donate button on their profile. You can donate as little as one cent and it all goes to the charity. This really kicked in when the Nepal earthquakes happened and many hundreds of Dollars were donated. Tsu founder Sebastian Sobczak set up TSU and Shikshya Foundation Nepal specifically for this cause, but other charities also helped there. I find it amazing that all this money is what people have earned from using Tsu. I've heard people call it a pyramid scheme, but nobody has to pay anything to join. Some people are making a lot of money and being very generous with their donation. Others make a little and give what they can. They may never get to the $100 pay-out level, but they can still do some good.

Of course people tend to want to make giving more fun, so various challenges have been organised to encourage donations. I've given to many of these. One of these is Tsu Madness, which was run in March. It's run like a sports tournament where popular Tsu members are played off against each by people voting for them other until two remain to fight for the title. The winner gets to nominate a charity to receive all the money raised from the tournament account and donations.

Tsu Madness is running again this month (June 2015) and I'm surprised to find myself entered as a wildcard. I'm by no means famous, but I've got to know a lot of people on Tsu by participating.

I'm up against people with far larger followings, so I don't expect to get too far, but I'll play along. My nominated cause is Charity Water. I think clean water is a basic right that we should have got to everyone by now, but much work still needs to be done.

I'll try to do a few posts to promote myself in the contest and to help it make some more money. I'll be donating some of the money I have too.

So please consider joining Tsu, even it's only to participate in this event. There are lots of cool people to follow and interact with, so maybe you will decide to stay.

Knocking down the walls

When Tim Berners-Lee developed the web he envisioned it as an open web of information that anyone could read (and modify originally). In the 25 years since then the web has changed a lot. Some sites are more like applications than just sources of information. One of the bad trends has been to lock sites behind some sort of barrier. This may be force people to pay for it or just to make them sign up to the site. There may be cases where privacy is required, but if I'm just sharing cool links or blogging then I want it to be accessible by anyone. That's one reason I use Blogger and other web sites I've run that have been open.

Although I liked many of the features of the Tsu social network I didn't like that it was a walled garden. If I sent anyone a link they would see this sign-up screen. That put me off sharing posts on other social networks. People thought I was trying to 'scam' them into joining some money-making scheme rather than being social.

Being able to share links across the various social sites is something I enjoy and any barriers to that were a pain.

As of today things have changed.









There's a new privacy option "Do not require users to sign-in to see my profile and posts". I've turned this on as I don't want my posts to be hidden. There's a further option to my profile from search engines, but I can't see any reason to do that.

It's going to be interesting to see if this affects the number of views I get. Tsu users have access to statistics on their most recent posts. You don't get details about where viewers came from, but it's interesting to see which posts work best. On Tsu views translate into income. When money is involved people will try to cheat the system and concerns were immediately raised about this. So it will be interesting to see if they count views from non-members.

Previously people have joined up just to see what the site is when someone sent them a link. Many of them never came back. Now they can have a look around first and decide if it's something they want to be part of.

I do see a few little issues with this. The profile that they originally visit only gets credited for new members if they join whilst on one of their posts (or the whole feed). If they click to another user (who has opened their feed) then the credit goes to that one. If they go to the 'home' page then they are back to the old method of having to manually enter a username. These may be teething problems that will get sorted out soon. The site is still relatively new and I don't know how much user testing has been done before making this feature available.

Tsu user Eileen Brown has written an article on ZDNet about the new open Tsu.

Here are a few of my recent selected posts for you to check out:

• From when I discovered the open Tsu
• Sharing a video about renewable energy on Orkney
• One of my photos from my neighbourhood

You are still limited in layout and number of images, so it's not an ideal blogging platform. I'll keep doing that here and post the links onto Tsu (and elsewhere).

I am making a little more money on Tsu lately, but it's not enough to justify my time. I stick around as I'm having fun interacting with cool people. It's interesting to play with a new site that is doing radical things. The money is just a bonus.

Collected thoughts

Earlier this week Google+ added a feature called Collections. This looks a lot like a feature I thought of some time ago that I called 'aspects'. I was thinking that there are some people I follow on social media who post on a variety of topics. In some cases these may be tagged, but it has not been easy to include or exclude specific topics. For example I follow some fellow Linux fans who are also into soccer, which is of no interest to me. I'd like to be able to exclude those posts from my feed as I have limited time to look through it all.

The Google+ feature allows you to select a Collection instead of circles for a post. When you create a Collection you can select whether your existing followers get it by default and they can opt out if they wish. You can also set whether it is public or for a circle (or just you). You cannot change that afterwards, so choose carefully. I created my Social networks Collection for my thoughts about G+, Tsu and other systems. I had a comment recently saying they thought I was 'spamming' their feed with money making schemes. That person could now opt out if they still want to see my other posts. The money making aspect of Tsu, 3tags and Bitlanders does interest me, but I don't expect to make much in the short term. I've given most of what I have made to charities that use those sites.

It would be good to see some automation of this feature by suggesting an appropriate Collection from keywords. Collections are already in the Android app.

I've seen a few opinion pieces saying that G+ is dead, but it seems pretty alive to me and this shows that they are still adding features. There are many millions of users and plenty of interest to me. It hasn't taken off like Facebook and Twitter, but I think it has the best set of features and a good user interface. They still don't have advertising, but I'm not sure they need the money as they will get it when people go to Gmail or Youtube anyway.

My current (dead tree) reading is Wikinomics by Don Tapscott and Anthony D. Williams. I've been interested in on-line collaboration for some years. It covers more than just traditional wikis. I've been an advocate of using a wiki at work for years, but some people just don't get it.

This book is a few years old and so it's interesting to see what has changed. Back in 2008 MySpace was the big player in social, having taken over from Friendster. Facebook was still in its early days and even Youtube was still fairly new.

Open for business

Businesses are starting to accept payment using funds accumulated on the Tsu social network. Users there get paid based on views, likes and shares. It will take most people some time (years?) to reach $100 when they can take the money out, but they can also use the money to send to other users or to donate to charities. There has recently been a surge of charity donations to aid the people of Nepal who have suffered a terrible earthquake. I estimate that thousands of dollars have been donated already. That shows how much money users have already. I've given away over half the money I've made on Tsu.

There are a couple of similar articles about Denver juice bar Bambucycles accepting Tsu payments. More will follow in areas where the network is big. You can only spend as much as you have earned as you cannot transfer money into Tsu from outside. The service is supposed to be taking 3% from each transfer, but I am unsure if they have started doing this yet. They are not profitable yet, but this could provide an appreciable part of their income in future. For now they still rely on venture funding that will have to be paid back.

I think Tsu needs to add features to make payments more convenient. They could add a barcode scanner to the app so that users can scan a code in a shop to make a payment. Some Bitcoin apps do this already. Users need to be very certain of how much they are transferring and to whom. There should be options of anonymous payments or to have the payers name listed against the transaction. At the moment you get a notification when you receive money that says who sent it, but you can't see this later in the Bank. People who are selling on-line need details of where to send their product.

With all this money floating around the service needs good security. Currently accounts are just protected by a password. I would hope people are using something non-trivial for that. Really they should be using two factor authentication as others do, so users need a code via SMS or other means to confirm they have a specified device. Even this is not perfect, but it reduces the risks. It is very difficult to achieve ideal security in ways an average user can cope with.

I've still only made a few dollars. I have a large network there that could potentially earn me much more, but most of those people are inactive. Keeping people engaged remains a problem. I had one recent 'child' who I estimate was making me several cents per day, but she was mostly posting what I would consider 'click bait'. She gained hundreds of friends in a few days, so people obviously go for that. She's stopped posting for now. If all of my network were that active I would be making several dollars per day. A lot of people still don't seem to understand the value of recruiting children and building a network. At this early stage there is huge potential for that.

Although Tsu is gaining new accounts they are not retaining all those users. Statistics show falling visitor numbers. Articles like those above may help to bring in more people, but they need to have realistic expectations about how much they can make.

I'll be sticking with Tsu for the meantime. I've made some cool friends there. There's Theo of the band E-Mute. I'm hoping to get to one of their gigs in a few weeks. There's also guitarist Elliott Randall who has played on many classic songs (e.g. Steely Dan's Reelin' in the Years). There are also lots of fellow social media enthusiasts.

The value of networking

A common feature of sites that pay users is that you get rewarded for recruiting people. This seems logical as they need to grow in order to make enough to pay the staff. Tsu and 3tags have the same model (spookily, rights-infringingly similar) where you get a portion of what your 'children' and their children make. The site keeps 10% in each case.

I've seen people on Tsu with networks of many thousands of people and this can make them several dollars per day. This only works if they are active. I have built a fairly large network myself, but only a small percentage are still active on the site and so I still only make pennies per day. This may change in time if more people join up or if those who joined before come back. There is definitely an issue with keeping people engaged. I suspect they give up when they don't make anything immediately. I think the two main issues are

1. Setting realistic expectations
2. I also think there is a language barrier. I've reached out to some of my children, but often they do not respond.

I wonder if some people join Tsu when they see a link just to see what it was as the main site is not visible to non-members. This seriously reduces how many will use it. I want my public content to be truly public, where Google etc can find it.

3tags is public and seems to benefit from that as people are making good money even though it has a lot less members than Tsu. I haven't managed to recruit many people and creating a post involves a little more work than Tsu, so I'm not doing much there. It's not really a social site. It's about sharing links and blog posts. I could blog there I suppose, but I prefer to be a little independent. Yes, I know Blogger is not under my control either. I do have my own site, but it's easier to blog here.

There's a new (ish) player at Bitlanders. Their USP is that they pay in Bitcoin. The site looks a little like Google+, but uses cartoon avatars. I think it's actually been around for about 6 months, but it's fairly quiet there. Some people have accumulated thousands of followers and may be making money, but there's not much discussion of that. A lot of the posts I see are about Judo. I think that's because some of the founders are into it. You get 'buzz' for viewing posts and videos. Each day that gets translated into some small amount of Bitcoin. If you recruit people you get a fixed 20% of what they make. I'll keep an eye on it, but I won't be visiting every day.

I've been neglecting things like blogging and pocasting lately. I need to drag myself away from the feeds and get back to that, as well as important things like playing my guitar.