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The Old Value-Cost Conversation
NYTimes.com used to offer a premium subscription service where content unique to the NYT (e.g. opinion columnists, special features, etc) was only available to subscribers. I was one one of the handful of people who actually paid for this service because I valued the the content. I do not know why they canceled the service and are now giving it away for free, but would seem that action is contrary to their current claims.
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Scott Porad
http://scottporad.com
And my photos are fun and free to use with a CC license.
We go for a beer, prospective client cries into it, I share ideas. (Ever notice how much easier it is to solve other people's challenges?) I go to an event outside my industry and give away my best advice when they find out what I do and ask.
In the situations where I make connections–come up with ideas that resonate, find some common ground, we end up working together.
It's a lot easier to hire someone you have even the most tenuous connection with. Especially if they've given you something of perceived value for free.
What are the papers mad about? Reproducing copyrighted content wholesale without permission is already illegal. Do they want to keep people from summarizing and commenting? Unfortunately, the law is (relatively) clear on that as well, under the well-tested Fair Use provisions.
What it LOOKS like they want is to protect the FACTS they find and CONCLUSIONS they draw. This will never, ever fly, for obvious reasons (i.e., the US Constitution).
I had to remove some images that I no longer wanted on my site and Google still had some of them indexed for almost 2 years. I had a gal complaining to me because she could not find it. I said that it was a premium graphic and if she wanted to use it, she had to pay a minimal licensing fee to use it.
You can find anything for free online. This is why I'm hesitant to write an e-book. I'm thinking of giving away good information and having people who want to learn more in-depth hire me to consult them over the phone and thru email.
Great post.
The USP of a media company are it's opinion makers (news are everywhere, there's few margin to create differentiation). And these opinion makers can now free themselves from media companies and broadcast at will with no big corp backing them up. Which poses a problem for media companies obviously.
You can use free to promote yourself due to your cost structure. And charge for premium services. I still believe that's the way to go. But I do believe the "premium" features have to be awesome. It must really make a difference, or else people won't buy it - or worse, talk about it.
My take on free, here: http://www.oak-brands.com/blog/?p=260
cheers,
your reader,
Pedro
As to the newspapers - all they need to do is turn things upside down, surely? They currently actually give a lot away free - color supplements, TV guides, DVD's and most of their web content. One option is to give the newspapers away free and charge for the rest. Another is the more commonly suggested idea that they give a certain amount of news away free, and charge for more in depth stuff. What do others think?
I too believe in sharing a lot of (hopefully valuable) information freely with those who are interested in personal branding (my area of expertise). I actually enjoy seeing my thoughts and writing on other web sites. What's critical, however, is attribution.Sharing information you find valuable is one thing, taking credit for it is another.
Best.
William
www.williamarruda.com
Funny, when I talk to old timers who survived the Great Depression, they express no shame in their frank desire to make a buck. Making a buck back them was damned difficult; making even a basic living was an achievement you could be proud of.
Then in the 60's, attitudes changed. The Boomers may have seen themselves as more enlightened and less materialistic. Perhaps they were. But maybe they simply took making a living for granted -- in prosperous times, it was a given.
So let's put this "free" conversation in context: I, too, give away a lot of content for free -- in anticipation of making a greater buck down the road. That's the nature of business today.
So Chris, when you talk about why you want your new book to sell, why not come out and say what we're all thinking anyway? Of course you want to make money. Is that so bad?
The NY Times example is a excellent one. They have tried several really nice walled garden approaches, well-executed and consistent with their editorial and design values. But then they bagged them, thinking an ad-supported, massively distributed model would work better. It ain't!
I think the sad reality is that the editorial value of older news brands is fading. I know my kids could care less about the differences in quality between the Times and USA Today and Drudge. They just want the story. But SOMEONE has to source legitimate news and information, properly vetted. In the end, that will always be the value. Without a source to distribute, what does Google have?
Does the free blog by an amateur compare to a subscription site by a "real" reporter who supposedly has resources and data-checking the amateur does not? Therein lies the heart of the question - the value of free versus the value of paid!
I agree that if I think what I created has value worth selling, then I can give a free sample (Costco) but you need too BUY the whole meal. Whether or nt people like your taste AND find value is always going to be the question. "Plate lickers" will always prefer free, quality customers will pay for value.
Newspapers like the Cleveland Plain Dealer (Connie Schultz in particular) allegedly have it out for US Copyright Law, hoping to change it so that linking to their 'free' Online news articles or summarizing them becomes illegal.
Hey, I'm all for getting paid. I want to get paid just as much as you do Chris.
Your blog is like an appetizer that makes me hungrier for your premium content (Trust Agents). So why don't news companies (not ALL news companies, by the way) stop threatening bloggers with legal changes and just rope off their content?
You can't link to something that sits behind a pay wall.
Your strategy is spot-on Chris. Entice readers to your site by providing excellent stories, strategies and content. Make money elaborating (speeches, books, bootcamps).
"Free" is good for marketing and brand building and connecting.
"Paid" ...well... Paid pays the bills and allows us to share all that free stuff in the first place.
Here's where I flesh out the copyright challenge levied by Judge Posner and (again, allegedly) supported by Connie Schultz:
"Social Media Lands in the Brig"
http://www.socialmediacommando.com/2009/07/02/s...
I give a lot away for free, mainly because I am a nice guy and want to help people. However there is a point (that is predetermined) where my time becomes too valuable to give it away, and their benefit can afford it.
Thanks for adding your voice to the discussion.
I give my two cents for free here: http://bit.ly/ujEYk
As near as I can tell, they're mad because the world has changed and they've yet to figure out how to change with it. They're mad because the recession hastened what's been a long-standing economic downturn for newspapers into a cataclysmic event. They're mad because many upper managers still don't get online communities and, as a result, react with hostility to those who participate, whether it's a blog that links to their content or a blog on their own site that criticizes the paper. They're mad because they spent years re-creating a print product online, getting even angrier at people who told them that wasn't going to be good enough in the long run.
Mostly, they're mad because shareholders are mad because the days of 30 percent profit margins are gone and because many companies outrageously overextended late in the day of the glory days. That's as big a reason for the current collapse as the recession.
JoeMescher also outlines several ways newspapers are shooting themselves in the foot by reacting to that anger in rather silly ways - banning links will solve all our problems! - rather than trying to make up for more than a decade of neglect to their online divisions in a rational way. I also blogged about the Posner theory this week - It's a crazy one! http://debralegg.com/2009/06/28/banning-online-... If newspapers want to hasten their demise, they should quickly jump on board on this one.
Absolutely, anyone who creates content has the right to control its distribution. Bloggers and blog commenters who re-publish any article in whole should be whacked. The whacking stick already exists - it's called copyright law.
But to think banning links and Fair Use quotes will solve the newspaper industry's problems is beyond naive. It's incredibly ill-informed about the way the Internet works. And that, I believe, is the crux of the new industry's problem online.
I have a sports background(covered 7 Super Bowls for Fox Sports Network) and saw 2 different sports industries go in complete opposite directions. Boxing wanted to make money so they charged for fights. After years of doing this No One wanted to pay but even worse they got no promotion because they wanted to protect their information(the fights) and that Killed it.
On the opposite end of the spectrum is the NFL. They are the #1 sports league by a large margin and they totally GET IT. They don't charge for anything! You want to watch the games just tune in. Even their biggest and most important game- the Super Bowl-anyone can watch it for FREE and they do every year making it the MOST WATCHED SHOW-8 of the Top 10 most watched TV shows all-time are Super Bowls.
It's their CONTENT that is so valuable and brings so many eyeballs that companies will PAY handsomely for that because of the VALUE.
So create great VALUE for FREE and if it's worth paying for it SOMEONE WILL.
That being said, there is innovation happening in places like the NYT & their R&D labs. Things like NYT TV, and a slew of other multimedia projects that have a foundation of amazing contextual content. I would pay for NYT in my living room. I'll pay for for for a membership where I get access to special events with people like Tom Friedman. I'll pay for an experience. What I'm not going to pay for a barrier to content that I've been getting free for years.
It seems to me we're seeing an extension of something that's always happened in the past, but now is more visible because we can broadcast stuff.
Fifty years ago my mother ran a business making drapes and covers. She did good work but customers never paid her for the real value add - her ability to help them understand design and how it would work for them.
Thirty years ago people bought accounting software from me, not because it was the best software, but because I helped them to understand how to make it work in their business.
Twenty years ago I learned management consultants give away two days analysis to sell ten days of scope definition to sell a hundred days of implementation.
The "reach" of the Internet now enables us to transform what was a "one to one" engagement into a "one to many" broadcast.
It's the same thought leadership driving business for us, except now we're in a "many to many" environment.
The really good news is audience, clients and customers get to compare value add from a range of potential providers/partners - bad news for the big brands and great news for those genuinely interested and capable of adding value.
What's generic is free, what's specific is chargeable.
This is only a problem for those entrenched in making money under the old rules.
As always, I agree with you!
BTW his is a HD TV investor.
What do you think paying dues members should expect free from their associations? Do you see free online content and information competing with nonprofit associations that provide content as a core service?
Cory Doctorow (science fiction author, co-editor of Boing Boing) seems to find that free distribution as well as free content works for him. And I'm not just talking about the blog articles, he gives away (under creative commons licenses) the full text to his novels.
Yet people seem to continue buying them. It may be because reading a novel printed in a book is easier than reading it on the screen or on letter sized pages from a computer printer. Or it may be for tribe identification. In any case, Cory believes that making the books freely available boosts sales rather than diminishing them.
I'm not saying this would work for everybody, just that it can work. It seems to work for Cory.
Catching up on Mark Cuban's ideas now.