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The Closing of the All You Can Eat Buffet

posted on March 4, 2010

I sat down this morning to record a Managing the Gray with one topic in mind, but for whatever reason I went off in a whole other direction and ended up talking about finding value.

Mosaic BuffetDuring the show, I discussed how we’ve all grown use to consuming as much content as we can get online for free. Sure, free is always better than having to pay for something. But, with that being said, the content creators have got to start getting paid or else that content is not going to be around at all.

Passion can fuel anything, but is impossible to maintain on passion alone.

We all have bills to pay, mouths to feed and roofs that we’d like to keep over our heads. There is the cost of time to create content. Heck, the technology we use to create the content isn’t free either.

There is a shift happening. There will always be plenty of quality free content, but the shift is towards making new layers of paid content. Things like The Third Tribe are just the beginnings of seeing this happen. 1938 Media has had a paid level for premium videos and now is producing The Audience Conference. I’m a paying member of both.

Others are going to follow suit. Many have tried and plenty have failed. We are all figuring this out together, but it is happening.

I’ll be going up to the buffet daily, but I’m also going to be digging into my wallet to enjoy some higher end establishments as well.

Thoughts?

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Categories: Rambles
  • jchutchins

    Great post, C.C. You wrote, “Passion can fuel anything, but is impossible to maintain on passion alone.”

    This revelation is as old as business itself … but with the emergence of online networks and the creative opportunities that hail from them, a whole new generation of creators and entrepreneurs (who don't have, or really need, a Wharton degree) are learning this for the first time. I'm one of them.

    It's posts like yours that will help provide a clearer path for creators and bizfolk in the years to come. We can't ignore pre-'Net business history and models, but we can't be bound by them either. Making history is tough work.

    I'm reminded of a saying an entrepreneur once shared with me: “You can always tell who the pioneers are. They're the ones with the arrows in their backs.” Marketplaces are absolutely in flux these days, but by sharing our experiences and observations today, there's hope for reliable monetization (and Free) models down the road.

  • http://VirtuosoTeamConsulting.com/ Jer O'Connor

    I listened to your podcast this afternoon on my way to a meeting with a client and I couldn’t agree more with your perspective. I’m happy to offer small pieces of knowledge, or experience, for free to perspective and existing clients, but my landlord requires a check every month. Thus the balancing act begins…

    I try to give away 20% for free, and charge for the other 80%, which I feel is comparable to having an iPhone app w/ a “lite” version for trial purposes. Not that I’m suggesting this should be the equation for everyone, but it’s the sweet spot I’ve found. Additionally, as a business operations consultant I have found that by giving away the 20% up front, I can establish how dedicated the client is to the process they claim they want to undertake. If they take the freebie and don’t do anything with it, I’m only out a small bit of time and have a pretty good idea they are not going to be happy with the other 80% for which they are going to get billed.

    Whether we are offering free content, advice, or a sample, people need to understand that if you want more, you’re going to have to pay for it. When you go to the ice cream shop, you can typically try as many flavors as you want with a tiny, little spoon; but when you find the right one, you’re going to have to pay for the scoop.

  • http://www.zellie.info/ Zellie Blake

    I think content creators need to stand up for the value of their work. If you write your ass off, you deserve compensation.

    Coupons are great, free samples are awesome, but as a consumer, if I work to pay for that four-course meal I'll treasure it more than free fries at McDonalds. As a writer, I'll get more respect for my work if other authors are also accepting nothing less than fair compensation.

  • http://www.ChristopherSPenn.com Christopher S. Penn

    To quote Mitch Joel quoting Mike Lipkin:

    I would do this for FREE but I make you PAY so that you understand the VALUE of what you are getting.

  • Steve Sherrick

    One cannot make art without food and water. If acquiring food and water requires paying for it, then one must acquire money. If acquiring money depends on one's art, then what we have is a full circle.

    As far as I can tell, there is no well-defined business model for the web – yet. There are many theories, many experiments, and perhaps a select group of success stories. I suppose those who have a gift for capturing a market and getting people to open their pocketbooks will find success but I suspect many others will fight an uphill battle against the ever increasing sense of entitlement for access to free content.

    Here's the discussion we were having over at Reduser.com about laws to deal with piracy and content distribution.
    http://reduser.net/forum/showthread.php?t=41586

    Independent filmmakers are really struggling with current business models, despite having so many more portals to get their work seen.

    Good topic CC.

  • Steve Sherrick

    One cannot make art without food and water. If acquiring food and water requires paying for it, then one must acquire money. If acquiring money depends on one's art, then what we have is a full circle.

    As far as I can tell, there is no well-defined business model for the web – yet. There are many theories, many experiments, and perhaps a select group of success stories. I suppose those who have a gift for capturing a market and getting people to open their pocketbooks will find success but I suspect many others will fight an uphill battle against the ever increasing sense of entitlement for access to free content.

    Here's the discussion we were having over at Reduser.com about laws to deal with piracy and content distribution.
    http://reduser.net/forum/showthread.php?t=41586

    Independent filmmakers are really struggling with current business models, despite having so many more portals to get their work seen.

    Good topic CC.