I had the opportunity to watch WIRED editor-in-chief Chris Anderson speak at the 2008 Economic Insight in Seattle. His subject... giving away items in your business for free, to lure customers into purchasing other commodities. This is nothing new. Much of what I heard reminded me of something my art teacher Steve Sherrell once said... that the 19th Century would have more in common with the 21st century. As for the Free Speech, I won't go into too many details, you can find those by clicking directly to his story.
View Anderson's article 'Free! Why $0.00 Is the Future of Business' on WIRED
Let's face it, the 20th century was a weird fluke in terms of business. The idea of a parental corporation that took care of its employees was noble and naive. How could GM ever expect to take care of all those former employees and their rising medical costs? I truly feel bad for the baby boomers, they've had the carpet pulled from under their feet during every critical moment in their lifespan. They had a choice between college or Vietnam. Their women's liberation efforts were rewarded with adjusting the economy to a two-person income. And when it was time to retire, many had the pleasure of watching their 401K's disappear. And then 9-11 and another war that seems like it's fought for the wrong reasons. No wonder the boomers are distraught.
I want to enforce the notion that everything we knew about the world between 1950 & 2000 was a hiccup in the timeline. It's back to business of survival, and fortunately we have new technology on our side. Thanks to the small cost of internet storage (referred to in Anderson's speech), we can now reduce online costs to virtually zero. And if you read his book The Long Tail, you know how Amazon.com and other on-line stores thrive on the simple face that since they don't have to turn around physical items on valuable retail shelf space, they can offer gobs of merchandise aimed at the niche markets for reasonable costs.
If I had one complaint about the speech, it was that I didn't really learn anything that I hadn't already read in his book and his article. The one true highlight was his play-by-play on how Ryanair can offer plane tickets for free, by weaving in lots of 'ala carte' costs. There's something to this, especially with a downturning economy and a Generation X that thrives on experiences. I like this business model as well, because it emphasizes responsibility. Obviously, the more responsible passengers will be rewarded by spending less. It's a good example of an airline doing good, for a bad one... watch PBS Frontline's take on marketing and how they examine the downfall of Song Airlines.
Is free the future of business? Perhaps... I personally think there's a different word for it. It's COMMUNITY with a dash of EXPERIENCE.
More later.
