Affinity establishes community, community builds trust, trust lubricates commerce

People establish trust based on commonality.  Facebook recently launched a competitive offering to Craigslist.  But just like eBay is an efficient market for sellers due to its high liquidity of buyers therefore creating the most efficient market for sellers driving to the optimal price, Facebook did something really smart as they are encouraging people to build localized groups where buyers and sellers of personal items can meet. But unlike Craigslist, Facebook uses their built-in community to create trust to drive to an efficient market.

I like selling things.  There I said it. But truth be told, I’m always selling something.  In my personal life, I’m constantly listing things on Craigslist, eBay and now Facebook. It’s the thrill of fishing with multiple lines in the water.

I’m fascinated by and a perennial student of different selling models and dynamics. Facebook is my latest fascination.  You can create a Facebook affinity group and sell, trade or barter stuff within that group.  Why? Because affinity establishes community and community builds trust and trust lubricates commerce.

As an experiment, I’m selling the same item in the venues of: Craigslist and Facebook.  Although Craigslist is better organized and categorized and would therefore intuitively drive more people in need of my item to me, the power of Facebooks affinity crushes Craigslist. I posted a personal electronics item on Craigslist about a week ago.  I’ve received 2 inquires. Poorly qualified, not ready to buy now. Craigslist trolls. Facebook on the other hand, as soon as I posted the very same item, I was inundated with 15+ Facebook personal messages from people ready to buy my item right now.  Why?

The Facebook selling group is called “Danville for Sale or Free”. It is by invite only, gated by a moderator and “exclusive” to people who live in Danville.  People are driven to trust based on our affinity for our little home-town of Danville.  One person even said, “I trust you, we’re both Danvilleians” That’s the secret code for people who live in Danville.

Kind of odd. But think about it, when you’re in the farthest reaches of Asia or Europe and you hear someone with an American accent, your ears perk up and you say, “Hey, buddy, American?”  When they answer back with “Hell Yes!”, this guy’s your new best buddy.  You’re drinki’n and talking Rogers vs. Brady vs. Brees with him. If you ran into the same schmo in Orange County, you probably
would have cut him off in the In-n-out Burger drive-thru and then flipped him off when he gives you the stink-eye, but now the power and affinity of the blue passport has you huggin and chuggin like old friends.

Mmmm, Affinity establishes community and community builds trust, trust lubricates commerce. (Said in your best Yoda voice)