How Simple Game Mechanics Can Impassion Your Users
mixergy.com
mixergy.com
E.g. Karma/Moderating systems glorify/reinforce consensus opinions to the detriment of actual discussion.
Friend counts destroy the real value of a friend connection.
Upvoting of articles leads to 'popular' articles inevitably taking the fore from on-topic articles.
etc.
Suppose you're trying to sell shoes and you notice that shoes with reviews sell better. So you add a karma reward system to incentivize reviewers.
The very act of soliciting those reviews with rewards will be reflected in the average review. And the relationship you formerly noted between reviews and sales, may no longer hold true. It may have been that the former relationship was truly between informative reviews and sales. And your reward system has created a flood of preference reviews which don't have the desired effect.
The community itself, the nitty gritty of the mechanics, and moderation all play a role in success/failure in respect to the underlying biz goal(s).
Google has a similar problem regarding SEO. Their search engine is a game for SEOs to play. If they can set up the game well enough (ie if the referee can detect relevant content with high accuracy), then the "ordinary" providers of content and the SEO folks will merge. Then you don't care if somebody says they've used SEO to get on top of the search rankings, because they legitimately belong there.
Until they really have a bulletproof relevance algorithm (which is an AI complete problem, I suppose), they have to keep a lot of the rules, the proxies for relevance, hidden.
Of course, when you win the Google game, you get cold hard cash. So there is a legion of obsessive players trading tips and trying to figure out the game. I wonder if you could make a fun game for a site with hidden mechanics and unpredictable rewards, without that pot of gold at the end, that could still draw customers...
It also seems like the current system is showing some strain with a growing userbase. Things that worked a year ago don't seem to function so well anymore. Specifically, there aren't enough hearts given per day to spend on the growing number of songs uploaded. And since a song's visibility is directly tied to the number of hearts it receives, a lot of good songs go unnoticed because nobody enough hearts to go around.
Nits aside, I still love the site. It's done more for me as an artist than anything else I've done so far.
What you've just described is a hearts recession. Paul Krugman will tell you that the obvious solution is to increase the liquidity of the hearts market. :)