marketing

McDonald’s Is Doing Coffee? The rule of opposites

McDonald’s Is Doing Coffee?: I can’t quite process the idea that McDonalds is getting into the latte biz. After living in the PacNW for a while, Starbucks is already my version of slumming for coffee. I can’t image going lower than that. PC load letter? Say what?[As Seth has pointed out it’s about what you are really competing against. McDonalds isn’t the opposite of Starbucks, but it might become one for Duncan Donuts.]
Source: James Duncan Davidson

Music business models based on free downloads

They often start with “Get some gigs, start building a following, do some recording (because it’s super cheap now that digital is everywhere) give all that away, rinse, repeat, and sell merchandise.

That is not a business plan folks, and it simply solves the audience desire for free recordings.

First of all, getting gigs is not that simple, and are plenty expensive to a band (or band leader). There are many fewer places supporting live (especially original) music, and plenty of reasons why you need to be either willing to work for free or a loss or established. And trying to make a living selling merchandise for a band without a following is also not a winning solution.

So while a recording can be considered a promotional device the question is how to you support the cost of creating it? True the incremental cost is small, but how much does the first copy cost?

Also spoken about as if it were magic is the sell the rare, give away the ubiquitous. This is the start of the subscription model where the artist figures out ways of getting folks inside. Pre-release tracks, backstage passes, etc. It doesn’t solve the promotional problem of finding places to play.

Here’s something that a lot of folks don’t think about. Not everyone is good enough to make there living as a musician. It’s not a right that you can invoke because you desire it, and the greatest work ethic will not guarantee anything either. To be good enough as a song writer, player, etc. to support yourself in this scenario of playing your own music for adoring fans is in and of itself rare. Desire doesn’t change that. Promotion doesn’t change that.

Maybe that’s all there is to it?

Professional services for professional blogs

Professional services for professional blogs: For Dave Winer, for me, for Ben Toth, for John Halamka, and for a growing number of professional bloggers in the sense I’m defining the term, there’s got to be a better way. We don’t need services that are free. We need services that are reliable here in the present, and that offer tiered levels of future assurance. If you build it, we will pay. [Opportunity knocks…]
Source: Jon’s Radio

Monopolies, seven years later

Monopolies, seven years later: The past, the glorious, profit-making, fun past of the media business was based on:

  • scarce creators, under long term contracts
  • scarce retail outlets, able to be controlled with marketing muscle
  • scarce spectrum (few radio stations, few TV stations)
  • copyright laws (and a lack of technology) that limited theft of services
  • limited power of the creators to compete without a large media company as partner

It’s hard to outline a point of view that shows the power of any form of media getting stronger over the next decade. There are going to be more TV channels, not less. More ways for authors to distribute their works, not less. More ways for musicians to connect with listeners, not less. More ways for consumers to sample or take content, not less.

You were a monopolist. You’re not anymore. [On the money, and on my mind.]
Source: Seth’s Blog

Social Networks Aren’t Products

Social Networks Aren’t Products: On launch day, I found that traffic was very strong, but hardly anybody was signing up. I literally got more e-mails from people saying “what a great site!” than I actually got sign-ups. Same for the following few days. So I decided to try an experiment. I put up a preview screen saying we were taking sign-ups and allowing customers to build their profiles, but I hid the page that allowed site visitors to browse other profiles. In this way, nobody was able to see how many (or, more accurately, how few) other members of the site there were at the time. The next day, sign-ups multiplied by several staggering orders of magnitude.

I learned from this experiment early on a lesson that would repeat itself for the next two years: a social network isn’t a product as such. Rather, the product that a social network provides is access to a large pool of other people. Every social network, whether it be a subscription-based dating site or an advertising-funded general community, must grapple with this ineluctable fact. It’s what makes the rules for social networks different from utility applications like Basecamp and BlinkSale.

If a new member signs up for Highrise today, she can use the application, put in some contacts, appreciate the app’s interface and functionality directly and, if she likes it, leave a happy paying customer. Highrise with one customer is a product with one happy client who might just become an evangelist to others. On the other hand, a social network with one customer, even if it were infinitely better than MySpace in every regard, is a company with one bored and angry customer, which is to say: an utter failure. In the taxonomy of Web applications, social and utility applications are entirely different species. [Excellent grounded story.]
Source: Vitamin Interviews

The $8 billion story/scam or Gift cards are for chumps

The $8 billion story/scam: Last year, more than $8,000,000,000 was wasted on these cards. Not in the value spent, but in fees and breakage. When you give a card, if it doesn’t get used, someone ends up keeping your money, and it’s not the recipient. People spent more than eight billion dollars for nothing… buying a product that isn’t as good as cash.

If I were a creative non-profit, I’d start marketing alternative gift cards. They would consist of PDF files you could print out and hand over to people when you give them cash. It could say,

“Merry Christmas. Here’s your present, go spend it on what you really want. AND, just to make sure we’re in the right holiday spirit, I made a donation in your name to Aworthycause.”

Stories come and go. It’s up to marketers to spread the good ones.

[Right on! Spread the meme: Gift cards are for chumps!]
Source: Seth’s Blog

Facebook doesn’t need to be Adbook

Facebook doesn’t need to be Adbook: But the problem for Mark, for Jeremiah, and for all of us (including yours truly) is that we too easily default to framing our understanding of advertising in its own terms. We regard advertising as an independent variable: something ya gotta have. But in fact advertising is a dependent variable. The independent variable is the individual human being. As Chris Locke put it so perfectly nine years ago, we are not seats or eyeballs or end users or consumers. we are human beings and our reach exceeds your grasp. deal with it. [Check out the VRM stuff.]
Source: Doc Searls Weblog