
Thanks to executive coaching and change management specialist Ed Batista today for sharing his notes and thoughts [Chris Anderson on "Free" at Global Business Network] on a talk by Chris Anderson yesterday about Chris’ much talked about new book Free: The Future of a Radical Price which is VERY relevant to libraries, librarians, and librarianship excerpted here:
“…In Anderson’s words, ‘The Internet is the first truly competitive market the world has ever seen,’ and in this environment we experience ‘the law of gravity online: If marginal cost is zero, and competition is unlimited, price will fall to zero.’ Anderson’s quick to note that he’s not saying the price should be zero or things should be free; he’s merely observing the dynamics at work in the market for any products or services that can be converted to bits.
He also noted that it’s not simply ‘free’ vs. ‘paid’ products and services, but rather free versions supported by advertising and ‘freemium’ versions in which consumers and users pay to get something extra. What will people pay for? In Anderson’s words…
- People will pay to save time.
- People will pay to lower risk.
- People will pay for things they love.
- People will pay for status.
- People will pay if you make them (once they’re hooked.)
The key opportunity created by offering your products and services for free is that “free allows you to fully explore your customer space…
And Anderson strongly believes in the future of books. Printed materials will survive to the extent that they add value to the online version of the same content. Anderson expects books, which are convenient for long-form content and ‘look nice on a shelf,’ to make it. He expects newspapers to die (or at least to be radically reinvented.) And magazines? They’ll eventually be replaced by Apple’s version of the Kindle, but the rich graphic experience they offer will keep many of them safe for now…
Finally, one of Anderson’s most interesting comments tonight was his assertion that ‘the key talent of the 21st century is self-promotion and creating celebrity…[and] the goal is to create celebrity, or reputation…and convert that into something that pays the rent.’ (On a cautionary note, he added, ‘And that business can be just as dirty as it sounds.’)
Although one example of this is Paris Hilton and the ‘fame-for-being-famou’ that she embodies, the openness of the Internet means that today anyone can at least get their ideas into the marketplace. That’s no guarantee of success, of course–you’ll still need some luck, even with good ideas and a talent for self-promotion. But as Anderson notes, we’re now able to tap into ‘the long tail of talent… The Internet has lowered the transaction costs of finding talent…[and] talent will find a way.’
This fascinates me as an executive coach, both on my own behalf and on behalf of my clients and students at Stanford Business School, because what Anderson is saying is that the rules are changing. We used to rely solely on personal networks and resume credentials to locate and identify talent (and to be located and identified by others as talent.) But in a more open marketplace of ideas, those filters are less and less useful as they screen out more ‘false negatives’ (i.e. talented people unknown to us who lack traditional credentials) and allow through more ‘false positives’ (i.e. people within our networks who possess traditional credentials but who aren’t really all that talented.)…
From a personal perspective, my writing on this site on coaching, leadership, change and related issues over the past few years has given me a reputation as someone with something of interest to say on these topics–a reputation that can be quantified in data…
So free work and free content have been the essential elements in developing a verifiable reputation and an identity as a trusted subject matter expert in my field, and I don’t know how I could have done it any other way. And seeing my own experience in this new light makes me wonder if I should be encouraging my clients and students to do more of the same…
FREE (full book) by Chris Anderson