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General Partner
Altos Ventures
Selling Content in the ‘Free’ World (And How your CMS Can Help!)
Whoever said “the best things in life are free” was probably not thinking about content. Then, along comes the ‘big bang’ of information technology and its progeny – the constantly unfolding (and largely ‘free’) online universe, to drastically rearrange our perceptions of value. Suddenly, the very same dollar one ungrudgingly parts with to pick up the daily news on the sidewalk is a deterrent online.
The Internet is about content. People aren’t primarily surfing for pretty colors or fancy flash intros. They’re looking for information that addresses immediate needs. With more than 100 million Web sites sprawled across the virtual horizon, there’s a mammoth amount of content accessible from a mouse click. Such a quantum of data ensures there’s a lot out there that interests an individual; and way more that doesn’t. Sorting through reams of data to get to what interests them is something people now expect to do with minimal fuss (thanks Google!). So things couldn’t be more straightforward for content providers, right?
Wrong! And here’s the barb. Just because you have content people want or need, doesn’t mean they’ll be persuaded to buy it. Why would they when almost everything is duplicable and a lot of it is free!
What’s Better than Free?
One reason why the digital environment is such a great distribution system is because it is remarkably suited to copying. Copying runs deep in its genes. The foundational protocols of communication that make the Web possible also demand that every action, character and message is copied several times along the way. Quite simply, the digital economy runs on the fuel of duplication. And if the industrial revolution made mass-produced reproductions cheap, the digital revolution makes it free. That poses a considerable challenge to the established order of sales and marketing. Kevin Kelly, founding executive editor and self-pronounced ‘Senior Maverick’ at Wired magazine frames the big question plainly. “If reproductions of our best efforts are free, how can we keep going? To put it simply, how does one make money selling free copies?”
But let’s be clear here, currency on the internet can have multiple meanings depending on your business. Of course it’s your paypal account or credit card number, but it can also be a lead generated from a prospect filling out a form. An action that we want to elicit from a customer or prospect is money one way or another whether it’s an email address or $99.99 for a subscription.
In his insightful article, ‘Better than free’, Kelly goes on to suggest that the only sustainable path to making people pay in a free world is to actually sell what cannot be copied! He goes on to explore the qualities or features he believes will generate the kind of value for digital content that will make people reach for their pockets even when there is a gratis carrot to be grabbed. Here are a few worth mulling over.
Immediacy: Timely content is invaluable. People want to know about some things anytime they develop, while they want to know other things only when they have a felt need for it. Either way, a fresh carrot will win every time.
What’s a CMS Got to Do With It?
Internet guru Gerry McGovern believes most Web sites are driven from a technical or graphical design perspective. In the digital world of free copies, that is a sure way to miss the bus. If content providers and marketers hope to make money, they will have to find ways to maximize value-generating potentialities into their content that cannot be duplicated. This can only happen when effectively structured and presented content is the driver. And of course, a good CMS is the ideal engine to ride on. Here are a few reasons why…
Everybody loves ‘free’. And that is why it is here to stay. But the ability to create value and the urge to reward it is also fundamentally human. Content providers and online marketers will have to find a way to put it all together to stay in the game. And an effective CMS can be a winning hand.