There’s a great article in Inc. about 37Signals recent decision to charge customers for a new product release, the outcry that followed and Jason Fried’s response to that outcry.
It’s about time someone with a loud voice said, “it’s really okay to charge folks.” The “let’s perform magic for nothing” makes me a little stir crazy at times in Silicon Valley, where a lot of social media start-ups and purists somehow think everything should be free.
The details? 37Signals put a $9.99 price tag on a piece of software. Make no mistake, there are plenty of iPhone apps in the App store that don’t charge a thing, and others that cost $9.99 on the high end.
The article talks about a product they released called Draft, which cuts out a bunch of steps people would have to do, saving them a pile of time. The concept? Sketch out an idea, tap a button, and automatically upload it directly to a Campfire chat room — no Sharpie, no paper, no scanner, no waste, no extra steps. Just draw, tap, done.
Draft is apparently the only drawing app for the iPad that works this way. In other words, the app can have a significant positive impact on your productivity. I guess his point is – isn’t that worth something?
Says Jason, “we think free is a business cancer. Offering some stuff for free is fine as long as you have something else to sell. But “we’ll give it all away for free and figure out how to make money later” isn’t much of a business model in our minds.” He adds, “we have no interest in participating in a race to the bottom.” Instead of going for the land grab, they created a small island.
Hear hear Jason and team and hats off to ya! What companies need to remember is that you don’t need EVERYONE to be a customer, you just need the RIGHT ones.
Renee Blodgett is the founder of We Blog the World. The site combines the magic of an online culture and travel magazine with a global blog network and has contributors from every continent in the world. Having lived in 10 countries and explored nearly 80, she is an avid traveler, and a lover, observer and participant in cultural diversity.
She is also the CEO and founder of Magic Sauce Media, a new media services consultancy focused on viral marketing, social media, branding, events and PR. For over 20 years, she has helped companies from 12 countries get traction in the market. Known for her global and organic approach to product and corporate launches, Renee practices what she pitches and as an active user of social media, she helps clients navigate digital waters from around the world. Renee has been blogging for over 16 years and regularly writes on her personal blog Down the Avenue, Huffington Post, BlogHer, We Blog the World and other sites. She was ranked #12 Social Media Influencer by Forbes Magazine and is listed as a new media influencer and game changer on various sites and books on the new media revolution. In 2013, she was listed as the 6th most influential woman in social media by Forbes Magazine on a Top 20 List.
Her passion for art, storytelling and photography led to the launch of Magic Sauce Photography, which is a visual extension of her writing, the result of which has led to producing six photo books: Galapagos Islands, London, South Africa, Rome, Urbanization and Ecuador.
Renee is also the co-founder of Traveling Geeks, an initiative that brings entrepreneurs, thought leaders, bloggers, creators, curators and influencers to other countries to share and learn from peers, governments, corporations, and the general public in order to educate, share, evaluate, and promote innovative technologies.
