Generative Value: What are You Selling?
February 7th, 2008 (11:00am) Mike Gunderloy 3 Comments
Web work is a big tent. But one thing unites us all, from part-time telecommuters to full-time digital bedouins: we all need to find some way to get paid for our daily activities (assuming we’re not already independently wealthy!). As the long-term consequences of cheap mass storage, ubiquitous connectivity, and massive bandwidth become apparent, though, it’s not always clear what our business models are. Businesses which used to be based on selling physical copies of creative output – such as record albums or movies – are in serious trouble thanks to the relentless copying machine that is the web.
Writer Kevin Kelly has taken a fresh look at some of these issues in a recent essay titled “Better Than Free.” In it, he addresses the question: “How does one make money selling free copies?” While this is currently of keenest interest to those of us working in the creative arts, Kelly argues that many physical goods, from pharmaceuticals to consumer electronics, are heading to price points that might as well be free. For web workers who are thoroughly integrated into the net – where our actual output of words and bits can be quickly and efficiently duplicated – this is becoming an increasingly important question.
Kelly’s answer (and I urge you to read his original essay, where this theme is developed in much more depth) is that “when copies are free, you need to sell things which can not be copied.” He calls these generative values, and identifies eight of them that are broadly applicable: immediacy, personalization, interpretation, authenticity, accessibility, embodiment, patronage, and findability. This list probably isn’t exhaustive, but it does point to the sort of human-generated value that is so far resistant to the automated copying of the internet.
Many web workers routinely generate content as part of their day-to-day business: blog entries, computer code, position papers, and more. If you’re one of this breed of web workers, it’s time to think about what you’re really selling to your clients. With the cost of copying plummeting, this is not the time to be staking your future on traditional content distribution as a long-term money maker. Rather, you need to be thinking about what unique generatives you bring to the table, and plan on how to enhance and publicize those in the coming years.
Do you see web work as the forefront of an economic change? Or can we continue to do business as usual over the internet?
3 Comments Post your own comment
garaughty says: February 7th, 2008 2:54pm
Hi Mike, I just read Kevin’s article, what a fresh way of looking at the concept/problem.
Many of us are looking at/for new ways to monetize our content and Kevin’s ideas provide a lot of food for thought.
Dave Navarro - Million Dollar Leverage says: February 7th, 2008 6:42pm
There’s another aspect to consider here – if you’re a web worker providing services to a corporation, they may be averse to going down the illegal copying path due to liability issues.
I’ve worked for corps that got stung hard and deep for copying, and find it cheaper to pay for things than to pay for lawyers :-)
I guess part of this simply has to do with who your customers are.
Julian Seery Gude says: February 8th, 2008 5:12am
Hi Mike,
As a “full-time digital bedouin” I’ve mulled over a lot of free/paid models in my latest effort. I can tell you that it’s interesting to put it in to action in the real world in my small business. Just yesterday a business owner and reader of my site called me and essentially wanted free consulting even though I only offer free content on my site – not free 1:1 consulting. :-)
Of course, I couldn’t help but help him (yes I am a sap). I churned out a quick 1-page recommendation for him based on his needs and sent him the info as homework. In another parallel world I would have told him I couldn’t help him or billed him for half of my hourly rate.
Was it worth it? Hard to say – depends on how you look at it. I chalked it up to market research/marketing cost because I learned something in the exchange. The best part is that I realized I could offer people like him a very low cost paid product in the future that might help other businesses and make me a little money so I don’t end up a non-profit. I think we just have to keep trying our ideas in practical situations – that’s how we’ll figure out the right balance.
As a related aside, Chris Anderson of long tail fame gave a great speech on FREE web/tech business models at a Nokia conference in November 0f 2007. If you or your readers haven’t checked it out I highly recommend the video and it’s also available as an mp3 download. Can’t wait to read his book on the topic.
Cheers
Julian