Archive for the ‘Business’ Category

Roll your own

Wednesday, May 19th, 2010

Sharing is in many ways the pivotal point of the web. Whether we are talking users sharing photos or videos, sharing ideas and thoughts the idea of sharing is not new to the web. The notion of freely available knowledge is what makes many people describe the Internet as a gold mine.

There is such a thing as over sharing (read disabling all privacy features on Facebook) amongst private individuals. However, few people thought that private companies would join this sharing wave to the extent of giving away their trade secrets all in the name of the open web. Never the less that is what Backblaze did in a blogpost back in September 2009.

Backblaze is an amazing backup tool that lets you backup your computer both Mac and PC for no more than $5 a month – unlimited storage. That price point is hard to beat and I have used it ever since I lost a vast collection of images due to a dead hard drive. This however, is not a commercial for Backblaze – now lets get back on track.

What Backblaze did back in September of 2009 was nothing less than extraordinary. In a blog post they revealed how to build their custom storage devices they have created enabling them to offer the storage at such a remarkable low price point. Not only do they describe how to build the “pod”, but they also include a 3d model, complete list of items needed and a diagram.

I still have not figured out why the decided to open up like that but I came across the blog post from Digg and found out about the company through that channel. Also it projected the company as cool, open, forward thinking and with good intentions. The outcome -> I signed up.

Many other companies and individuals are doing this on a regular basis – giving away for free. At the end of the day that is what the open source movement is about.

Another example I came across recently is a small project managed by Niels Gamborg. He has created a range of name generators and has decided to give away the name generator scripts that run this site for free. What makes this stand out from general open source projects is that we are actually talking about a complete site ready to launch with minimum effort. This could easily be used for an Adsense hobby project.

Bottom line – the Internet is once again showing how we are reinventing how we do business.

Lesson Learned: Pay Walls Do not Work

Wednesday, April 21st, 2010

When Rupert Murdoch earlier this year announced his plans for creating a so- called “pay wall” around the web sites of his company’s media operations, commentators ran amok in a race to predict the future outcome of the plan.

“Our website does not threaten our paper – it protects it”

Personally I think the idea has had failure written all over it from day one, but much as many other bystanders with an opinion I did not have any numbers or facts to back up my predictions – now I do.

On April 19th 2010 DMGT, the company behind the most visited online newspaper in the UK, The Daily Mail, announced their experiences at their annual investor day meeting. Martin Clark of Daily Mail told the audience what many spectators, knew all along, that “People pay for the convenience of print in recognition of the special cost of production and delivery of a tangible product and because they purchase it WHOLE.” He went on to saying that people expect news to be free except for print, and at the same time acknowledging that even though the journalists provide content to both the offline and the online platform, the ball game is very different indeed.

How publishers can make money online

So How Does the Daily Mail Make a Profit?

Not much of a surprise here – they make their money off ads. Actually they are up 131% in ad-revenue from last year. Size does matter in this game, and it appears that the Daily Mail is winning at the moment. Giving away content for free is the key to success in this case. By focusing on creating repeat visitors they have created a loyal audience – 78% of whom does not buy the print paper, but the readers who actually buy the paper AND visit the website buys twice as many copies as the reader who does not visit the website. In other words the free content on the website is helping their print business.

“Our website does not threaten our paper – it protects it” – Martin Clark

You can read all the slides from the meeting in the pdf linked below

Download pdf