Sharing: Good For Business?
Feb2510:11 AM
Filed in: Opinion
Sharing is good for business.
Just ask Radiohead or Nine Inch Nails, it certainly worked for them. NIN's Ghosts I-IV album was given away for free last year by the artist, but it was also the number one digital download album of the year on Amazon.
The philosophy of free isn't tied strictly to just digital music, it's a valid and effective form of marketing for pretty much everything.
Instead, think of a shared, pass-along item as a potential new customer. Rather than envisioning lost dollars with each free download, think of each download as a future revenue earner. Free downloads have the opposite effect as to what many people think.
Mixed tapes.
When you were a kid, how many times did you hear an amazing new song on a mix tape that a friend made for you, fall in love with a new artist, and then end up buying their albums, t-shirts, and concert tickets.
How is file sharing any different? Did mix tapes kill the music industry?
A Borrowed Book.
When someone lends you a book or magazine to read, is that considered copyright infringement? No. Then why is shared music considered this way? A passalong book gives an author the opportunity to attract a new reader, a potential customer who otherwise wouldn't have been aware of the author's works.
This correlates with the digital realm as well. Many e-book authors give away free copies of a book, attracting a new audience in the process while they gather an email subscription list. Then, after giving away some free "product", they offer a larger, expanded e-book for purchase to their list of readers.
Free Coffee Sample.
Why do you think Starbucks frequently gives out free samples of new drink concoctions (steamed berry juice with a shot of chai anyone?). They understand the best way to sell a new product is to have people fall in love with a free sample, walking away wanting more and telling friends about the yummy new drink they just tried.
Web Mail.
Have you ever wondered why Google, Yahoo, Hotmail and many others offer free webmail? The concept is no different from the above. If you fall in love with the product, you'll become a fan, tell others, and become a dedicated user.
Drug Companies.
Have you ever gone to your doctor and they've give you a free sample? If the drug works for, the manufacturer is betting you'll come back, but with dollars in your hand.
Share the love, give it to a friend. There's nothing more powerful that word of mouth. Just ask Apple. Why do you think they made a free music application called iTunes?
If you're interested in the above concept and what to delve a little deeper into this topic, check out the video presentation below by the CEO of Creative Commons, Joichi Ito.
- by Brian Thompson
