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	<title>We Are Essential &#187; better than free</title>
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		<title>Better than Free</title>
		<link>http://www.essentialresearch.co.uk/blog/2009/07/better-than-free/</link>
		<comments>http://www.essentialresearch.co.uk/blog/2009/07/better-than-free/#comments</comments>
		<pubDate>Mon, 27 Jul 2009 22:33:32 +0000</pubDate>
		<dc:creator>Simon</dc:creator>
				<category><![CDATA[Essential Reading]]></category>
		<category><![CDATA[better than free]]></category>
		<category><![CDATA[free research]]></category>
		<category><![CDATA[freemium]]></category>
		<category><![CDATA[kevin kelly]]></category>

		<guid isPermaLink="false">http://www.essentialresearch.co.uk/blog/?p=57</guid>
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			<content:encoded><![CDATA[<p><img class="alignright" title="Free hugs" src="http://farm1.static.flickr.com/174/401919914_85cc8dc1ac_m.jpg" alt="" width="240" height="240" />As part of our team meetings, we take it in turns to inform our colleagues what we have recently read and what (if anything ) we have learned from it. This week was my turn.</p>
<p>The blog seems like a good forum to extend this sharing to the wider world, and it is apt that the article I have recently re-read is <a class="zem_slink" title="Kevin Kelly (editor)" rel="wikipedia" href="http://en.wikipedia.org/wiki/Kevin_Kelly_%28editor%29">Kevin Kelly</a>&#8216;s essay entitled <a href="http://www.kk.org/thetechnium/archives/2008/01/better_than_fre.php">Better than Free</a>. Kelly is &#8220;Chief Maverick&#8221; at <a class="zem_slink" title="Wired (magazine)" rel="geolocation" href="http://maps.google.com/maps?ll=37.7808,-122.3957&amp;spn=0.01,0.01&amp;q=37.7808,-122.3957%20%28Wired%20%28magazine%29%29&amp;t=h">Wired</a>, and this article dovetails nicely with his colleague <a class="zem_slink" title="Chris Anderson (writer)" rel="wikipedia" href="http://en.wikipedia.org/wiki/Chris_Anderson_%28writer%29">Chris Anderson</a>&#8216;s recently released book <a href="http://www.amazon.co.uk/Free-Economics-Abundance-Changing-Business/dp/1905211473">Free: The Future of a Radical Price</a>.</p>
<p>(As far as I am aware, Anderson is not titled &#8220;Chief Goose&#8221;).</p>
<p>Kelly&#8217;s essential point is that the internet is a copy machine, which makes and distributes these facsimiles for free. When copies are super abundant they become worthless. Conversely, what can&#8217;t be copied is scarce and thus valuable.</p>
<p>Looking specifically at the user/consumer perspective, Kelly identifies eight aspects of a product or service that cannot be copied. Therefore, they create value, which people are prepared to pay for.</p>
<p>These are:</p>
<ol>
<li> <strong>Immediacy </strong>– getting something at the moment of release, or even production. Distribution may be free but it has to start somewhere e.g. a film in the cinema or an iPhone at an O2 store</li>
<li> <strong>Personalisation </strong>– something customised to reflect preferences. This relationship is sticky as both sides are invested in building up a history and it makes each item unique e.g. a personal shopper</li>
<li> <strong>Interpretation </strong>– where you give the software away but charge for the manual</li>
<li> <strong>Authenticity </strong>– a reassurance of quality and trust e.g. the New York Times, or a new car rather than <a href="http://en.wikipedia.org/wiki/The_Market_for_Lemons">Akerlof&#8217;s lemon</a></li>
<li> <strong>Accessibility </strong>– outsourcing the cost of storage but retaining access at a click</li>
<li> <strong>Embodiment </strong>– digital is disembodied and physical can still mean something e.g. a hardcover book or a live concert</li>
<li> <strong>Patronage </strong>– from the <a class="zem_slink" title="Medici" rel="wikipedia" href="http://en.wikipedia.org/wiki/Medici">Medici family</a> and the Renaissance to Radiohead, some (but not all) like rewarding creators</li>
<li> <strong>Findability </strong>– superabundance can be overwhelming and so intelligent navigators can provide a service e.g. a TV  Guide</li>
</ol>
<p>Trust and sharing are consistent throughout. Kelly says that the era of copyright has passed and that generosity should be built into business models. Money doesn&#8217;t follow the product, but the attention.</p>
<p>I&#8217;m not sure if I agree with that last point, but his essay has interesting applications for the research industry. Research shouldn&#8217;t be viewed as a commodity (it isn&#8217;t), and value should be created or added at all stages of the research process.</p>
<p>Looking at the eight attributes again through the lens of the research industry:</p>
<ol>
<li> <strong>Immediacy </strong>– if data is available, it is available and withholding it would be foolish. And of course insights (<a href="http://curiouslypersistent.wordpress.com/2009/07/13/the-nebulous-concept-of-an-insight/">a word I&#8217;m not particularly fond of</a>) can&#8217;t be rushed.</li>
<li> <strong>Personalisation </strong>– in syndicated studies, a personalised report goes a long way to justifying the expense</li>
<li> <strong>Interpretation </strong>– an obvious one. Data might be readily available, but knowledge is ingrained in the specialist</li>
<li> <strong>Authenticity </strong>– this is achievable, but lazy. You are only as good as your last project &#8211; trading purely on your brand name or image encourages short-cuts. It needs substance to back it up</li>
<li> <strong>Accessibility </strong>– rather than subscribe, information or knowledge could be purchased on an ad hoc basis (at a greater rate)</li>
<li> <strong>Embodiment </strong>– a bound and illustrated report may be nice, but is neither a deal clincher nor breaker</li>
<li> <strong>Patronage </strong>– if only!</li>
<li> <strong>Findability </strong>– this links back to point 3. A lot of information is available, but making sense of it is a skill</li>
</ol>
<p>Anderson may assert that information wants to be free, but not all information is equal and Kelly highlights several areas in which premium pricing (not to mentioning pricing at all) is both justified and accepted. These are attributes to consider when designing a research programme.</p>
<p><a href="http://www.essentialresearch.co.uk/blog/2009/07/better-than-free">sk</a></p>
<p><span style="font-size: xx-small;">Image credit: <a href="http://www.flickr.com/photos/eelssej_/">http://www.flickr.com/photos/eelssej_/</a></span></p>
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