Tag Archives: Free

Why We Can’t Afford Free

I know a man who spends his days keeping society on the rails, and his nights gambling on the internet to pay for it. He is a magistrate and it’s one of the many jobs that people do for free.

There is an expectation today that things will be free and it has penetrated our lives to an astonishing extent. Kids graduating now, have grown up without any notion of paying for music, TV, movies or games.

Free, as Chris Anderson explains in his fascinating book of the same name, has its own economics. It knocks everything else out of the water. You simply can‘t compete with free. A CD that costs a penny will stay on the shelf if the one next to it is free. The free CD is a no-brainer because you make no commitment.

The free generation is pretty much “hostile to copyright”, as Chris Anderson has it, and is playing its part in taking down industries which no longer fit the old model. The record labels, the newspapers, even paid for TV and boxed-up video games are all struggling in a world where what you want is available now, online and for free.

This hostility to copyright has invaded intellectual property too. There is an expectation that your ideas, your experience and your expertise should be available to others for free, hence my friend the magistrate, who has to fund his good works by gambling.

But now there seems to be a backlash underway.

There’s been a surge in blog posts recently from people who have had enough. They have titles like, “Why do we blog if there is no money”, “How to make sure you don’t sell yourself short as a freelancer”, “Why I can no longer give my work away for free.” Witness also the move by the Third Tribe group of social media experts towards a paid for community. Access to the new stars of social media is no longer “all areas” but behind the velvet ropes.

Free and its counterpart, Cost, are heading for a titanic struggle.

Free has conditioned us to give away our efforts almost constantly. We make and share playlists, write blogs, review products and book our own tickets. We populate the internet with our free labour and our free content.

But to make a living, whether you are Rupert Murdoch trying to squeeze a  return out of your investment in newspapers, (who we don’t feel sorry for) or a struggling copywriter looking for payback from your free online advice, (who we do) money is at some point going to have to come back into the equation.

Murdoch is tackling the problem by putting up pay walls for on-line newspaper content, encouraging others to do the same. Whether people will go for it remains to be seen.

But the fact of the matter is, if information really does demand to be free to the end user, as Chris Anderson has it, then the big guy can afford to pay for it and still make money. Economies of scale and clever new ideas pay for give-aways on the back of profits made elsewhere.  (See Chris Anderson’s book for chapter and verse on companies offering free electric cars, free stock market trades, free long distance calls and even a shop in which the goods are all free.)

They can afford to do this because ‘free’ is an illusion. We are still the ones who pay.

So the shiny new economics of free look remarkably similar to the old economics of paid. And the little guy who struggles to keep up? He may end up paying too by going to the wall.


Psychology,you can’t afford to ignore it.

“All economics is Psychology” says Chris Anderson in his book  Free the future of a radical price.

I would go further and say pretty much everything comes down to psychology.

It is so basic it should be taught in schools.

The way we feel when we act is key to everything from making a purchase, learning a skill, disciplining our children or getting on with our partners. It is incredibly powerful and can even dominate things we know to be absolute.

Take for example 2+2. We know that this equals 4 and always will do. But as  children  we may repeat the sum over and over again on our fingers because we have not yet developed the confidence that it will always be the same.

When you are confident of an outcome you can comfortably take things to the next level. Once I am confident that I won’t drown in the swimming pool I am able to learn the techniques I need to swim with a stylish stroke.

Once I am confident that the Italian café provides me with superb coffee everyday I  might try it out for lunch.

As a  swimming teacher or café owner, knowing how my customer feels can help me enormously in providing them with the skills and services they want. I need to use basic psychology to judge when they are ready to go to the next level with me and then lead them there. Can you see how this might help in other areas of your life ?

It’s not just in confidence-building that psychology plays such an important role, although I challenge you to think of any job that does not involve the transfer of confidence from you to the client.

Take the psychology of price. Charge too much and your client feels ripped off. Charge too little and your client thinks you’re no good.

What about the amazing effects of just being heard ?

Life coaches, hypnotists even doctors perform a common basic function; listening to their patients. Some damaged individuals who get little attention in life,become addicted to hospital visits because people hear them and pay them attention. Children in small classes flourish because, for once, they can be heard.

Popular psychology was once a big deal in the business world and has fallen somewhat out of favour. Now we hear a lot about Trust and Community and building Relationships. But at bottom, they are all versions of the same thing; building confidence and the desire to be heard.

Someone is stealing my stuff.

Someone is stealing my stuff and I’m not too pleased about it.

It’s not like they broke into my house and took my computer but just the same theft is theft isn’t it ?

Here’s what happened. I was browsing on Google to check out how my blog was doing and I came across a post I did a few weeks ago. It was on a site dedicated to dogs. Now I did mention the Dog Whisperer Cesar Milan in a post about Malcom Gladwell’s new book, but it certainly wasn’t a post about dogs and I should imagine anyone coming across it while browsing for a little light canine reading would be very disappointed.

So why is someone scraping up all the blogs which mention dogs in some random way and putting them on a website ?

To make money of course. Money out of my and other people’s words.

I sound naive don’t I? People make money out of any tiny niche going. It’s the way of the world. I do know this. I know this because I have seen people selling courses on how to make a pitch at a networking event which exists to try to help people meet other people who might know people who might buy their stuff.

But selling ads round a load of dog blogs which in my case isn’t even a dog blog ? Come on.

The wise thinkers of the internet say we need to let go of our intellectual property. We should have the confidence to put our ideas out there. Post up your writing, your music, your business ideas all for free and then reap the rewards …er they always lose me when it comes to where we get the rewards from. Malcom Gladwell did a brilliant review of Chris Anderson’s book Free, the Future of a Radical Price in the New Yorker taking down a lot of this argument.

They argue that ‘Information wants to be free’. But does that mean free to be plagiarised or sold on as something else ?

Getting exposure for your ideas is seen as the holy grail, so if  dog loving eyeballs rest on my blog shouldn’t I perhaps be grateful ?

Well I love it when my blog comes up in directories and search engines just as much as you do but I’m not yet so much of a media tart that I want my stuff out there at any cost and what’s more the people searching for relevant content are being short-changed.

To that end I promise to look at the way I tag my posts to check they are relevant.