The free trap

Is giving stuff away killing your business?

There’s a number of good reasons for offering a free service or product, you could be trying to build a customer base, position yourself in the market, gain experience in a new field or simply want to give something back to your community.

But in this age of Google and Bing where knowledge is free and skills a cheap commodity how sustainable are the free models of doing business?

The Cooks Source plagiarism story and Gavin Heaton’s recent post on Why Social Media Consultants Are Broke illustrate the problems many knowledge workers are having in the new economy.

Gavin quotes Jessica Gottlieb on her Stop Working For Free You Tube clip. With Gavin’s point being that most social media people work for the love of what they do, not for money. Jessica’s views are a splash of cold water in the faces of those who write for at best a few pennies in the hope it will lead to something bigger.

While both Gavin and Jessica are right, there’s a bigger issue at work — that there’s no market for this work. There may be a need for it, but there is no one prepared to pay for it and there are hundreds, if not thousands, of people prepared to work for nothing.

The plagiarism carried out by the Cooks Source magazine is a good example of the free trap where Judith Griggs, the editor, not only believes she is doing the right thing stealing someone’s work but that she actually does the writer a favour.

It’s the idea you’re actually doing a writer a favour by ripping off their work that’s probably irritated most people criticising Judith. It wouldn’t be so bad if Judith did actually do anything to help the writers beyond cutting and pasting their text.

Sadly Judith isn’t alone in this and once you’re taken advantage of by her and the millions of others with these attitudes, you’ll find the demands for free escalate. All of a sudden you’re travelling around the country, taking support calls and being pestered to do all manner of further free stuff.

This isn’t the first time we’ve had to deal with a culture of free. Bill Gates dealt with in the same problem in 1976 where Micro-Soft’s Altair computer programs were being copied. His Homebrew Computer Club letter has become a sort of computer industry equivalent of Luther’s 95 thesis.

Gates’ letter though was written before the Internet where a culture of free has developed, driven often by corporations giving stuff away because capital has been cheap and labour often free. This developed in the dot com boom and has continued every since.

We’re now seeing the capital dry up and the question is how long the labour can afford giving things away. It may be the US and European recessions prolong that free supply as desperate people seek opportunities.

As The Joker said in the Dark Knight movie; “if you’re good at something, why give it away for free?” If you’re doing something for free,  identify why and set some goals on what you want that free work to achieve.

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The new Pantopticon

Are we entering a new age of conformity?

There’s a rule in broadcasting that any microphone should be treated as loaded. Regardless of whether you think it’s on or not, you shouldn’t say anything untoward near a microphone that you wouldn’t want to go to air.

It’s a lesson many politicians have learned, sometimes to their great embarrassment and sometimes with potentially catastrophic consequences.

Today, in an age where almost everyone has a recording device in their pocket, we all have to be careful. The travails of an Australian Rugby League player, photographed by a friend doing something obscene while drunk on an end of season party, illustrates just how pervasive this surveillance can be.

In one respect this is good, as we saw with the Qantas A380 mishap in Singapore, a connected public allows the truth to get out despite the hysterical headlines of the media and the spin obsessed control of modern governments or big business. The fact almost everyone has a camera makes officials more accountable for their actions.

But there is a darker side, this constant monitoring can also be tool for conformity. Should you decide to dissent from the corporate, government or society norm, there is now plenty of material to discredit you – be it a drunken stunt with a dog, a silly Facebook post when you were 17 or a photo of you picking your nose while waiting at a traffic light.

There’s no shortage of ‘concerned citizens’ who will photograph or record us carrying out actions they believe don’t conform with their ideas what is normal and acceptable.

Our definition of ‘normal and acceptable’ is becoming more narrowed as well, as a myriad of communications channels allows us to watch only what fits into our view of the world and the rise of social media that lets us filter out those voices we don’t like.

It’s going to be interesting to see how the connected society develops over the next few year, will we become more insular and conformist or will we use these tools to broaden our horizons?

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They’re Talking About You workshop

How can your business monitor what’s being said on the net?

“They’re Talking About You” is a four hour workshop designed for business owners and managers responsible for protecting and enhancing their organisation’s reputation in an often hostile online world.

In association with Reputation Australia we’ll be holding a morning workshop in North Sydney on Friday, November 26. Contact us for pricing and venue details.

During the workshop participants will learn how to monitor what is being said about their products, deal with criticism and make use the new media channels as effective branding tools.
At the end of the workshop, participants will have an understanding of the benefits and limitations of the major online communications mediums.

Participants cover;

• the major online media channels
• identifying which platforms are appropriate
• monitoring the chatter
• dealing with problems
• disarming the critics
• effective use of online marketing methods
• using online media as a recruitment tool
• being a credible online authority.

Who should attend?
They’re Talking About You is suitable for communications professionals, managers or business proprietors wanting to maximize the use of online media and avoid unnecessary mistakes in the virtual marketplace.

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Misunderstanding crowdsourcing

We need to understand the differences between outsourcing and crowdsourcing

Crowdsourcing is the idea that the wisdom of crowds can solve complex and expensive problems, with the rise of the Internet it’s become possible for groups to coalesce around a problem and resolve it.

Some good examples of crowdsourcing are The Guardian’s investigation into British MPs expense claims where dozens of the newspapers readers examined the mass of paperwork for irregularities, a task beyond the resources of the paper itself, and Wikipedia where thousands of volunteers work to compile an online encyclopaedia.

The Future of Crowdsourcing Summit recently looked at the issues and opportunities this offers for businesses. IT industry journal Computer Reseller News has an excellent summary of the day, although the emphasis on massive cost savings is probably misguided.

What sticks out in CRN’s account is many businesses are confusing crowdsourcing with outsourcing — online bidding sites such as Freelancer.com and competition sites like 99Designs are not crowdsourcers, they are outsourcing services.

Sites like Freelancer and 99 Designs are making outsourcing, which was until recently the province of large corporations, accessible to small and start up businesses. They’re revolutionising business by reducing entry barriers to entry for new enterprises and industries by allowing entrepreneurs to access skilled workers with little more than a credit card and Internet connection.

That emphasis on cost needs to be treated carefully as well. As I’ve argued about cloud computing, it’s risky to overstate savings in a new industry as there’s a risk of commoditising the market prematurely.

Larger outsourcers found in the previous decade that assuming labour rates at 10% of home market wages equate to 90% cost savings is usually flawed as there’s a number of hidden costs that come to surface when you take services off shore. Almost certainly the users of bidding sites will have the same experience.

Probably the biggest barrier to smaller businesses adopting outsourcing or crowdsourcing is that both processes require project management skills which are often undervalued in business.

We need to acknowledge the changes outsourcing and bidding services mean to our industries and society, but we shouldn’t confuse the concepts. Both are too valuable to business to be misunderstood and devalued.

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New Media in the Boardroom workshop

How do directors and executives deal with the new online tools?

The Internet is changing our businesses and markets. The New Media in the Boardroom workshops are an executive briefing on how your organisation can meet the challenges of the new economy.

Online tools like social media and cloud computing offer opportunities along with a range of reputational, legal and compliance risks to corporations and large organisations.

New Media in the boardroom explains the various technologies, their usage and how they fit into business and professional objectives with hands-on instruction on setting up and using these tools.

This workshop is designed for all business people concerned about managing staff who are using social media tools inside and outside the workplace.

During the workshop participants will learn about the different new media tools in use at present, how workplaces are affected by them, developing Internet trends and discover whether these programs are useful to their professional activities.

Customised for your business

The new media in the boardroom workshop is customised for the attendees. All case studies and tools are selected to be specifically relevant to the client’s industry and business objectives.

Participants cover;

  • The new media tools
  • Why do people use them
  • Opportunities in the new economy
  • Enhancing your online repuation
  • Managing risks
  • Executive use strategies
  • Legal tricks and traps
  • Social media policies
  • Employment issues
  • Case studies

Who should attend?
New Media in the Boardroom is designed for business owners, executives and senior management wanting to understand how the web and social media is affecting their business.

Workshop duration
This workshop can be run as a group or an individual executive training session. For individuals, we recommend the program be structured as three 90 minute sessions. Group courses can be run up between two hours and three days depending upon requirements.

More details
Contact us for more details on this workshop and how we can help your business, organisation or community group identify and deal with challenges of our exciting era.

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5 ways to guarantee postive online reviews

how do we ensure people say nice things about us on the web?

The last week has been an interesting time in the online travel review world with some serious questions about the reliability and honesty of customer reviews being raised.

First an English hotelier threatened to sue the hotel review site Tripadvisor over a negative review and then the same site sanctioned an Irish hotel for obvious fake positive reviews. Today, the travel site Orbitz has announced they’ll allow user reviews from people who’ve never actually used the service.

There’s no doubt these sites are important to businesses. In hospitality, customers check the online reviews of cafes, restaurants and hotels before planning meals or holidays. Smartcompany has previously listed a range of sites where customers review businesses in other sectors.

So given the value of positive reviews on these sites, how do we ensure our businesses get positive coverage?

Sue the critics
You can always lawyer up and threaten the bad guys. If you can identify the malicious reviewers, a “nastygram” from a your solicitor may shut them down. This is expensive though and high risk if the bad reviewers goes public with your threats.

Also, experience shows that restaurants who succeed in the courts usually don’t do well in the marketplace. Most litigious proprietors find their establishments out of business long before the judge or jury vindicates them.

Bribe your customers
Quite a few businesses do this by offering freebies and discounts to customers who write nice reviews. This can work well but be careful you don’t put these offers in writing as the sites themselves frown on this behaviour.

Write your own reviews
As politicians and spin doctors know, the best way of controlling the message is to create your own narrative. You’ll need to be anonymous and you have to establish credibility by having more than just a single gushing review of your own establishment. So it’s worthwhile visiting your competitors and writing mildly complimentary reviews about them before submitting the sparkling review of your premises.

Listen to your customers
Even the best establishments have the odd crook day and if even yours doesn’t there will be some customers who are never happy. Use the ‘social’ part of “social media” and engage with them. If you are honest and upfront you’ll find a polite reply will actually win customers from a bad review.

Online review sites can also be thought of as a free customer feedback service. Consistent poor reviews on a specific area such as food or stroppy staff are sending you a message that something needs to be fixed. The Clare Hotel, the Irish establishment referred to above, clearly has a problem which all the rigged reviews in the world aren’t going to fix.

Deliver a great service
Ultimately these review sites are about lifting the game for all businesses. It means we have to all have to make sure we’re delivering our best product because people are talking about us and sharing their experiences. If we do a great job, that will be reflected in the majority of our reviews.

Review sites are important and they are changing the way our customers find us. But in many ways there’s nothing new about these services, they’re a modern variation on word of mouth marketing which is the most basic and fundamental way of attracting clients.

We need to keep in mind that ultimately the flashiness of our websites, the slickness of our marketing or the bling of our fitouts really don’t matter – it’s the quality of our product that matters.

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The illusion of transparency

Disclosure doesn’t excuse poor behaviour

Transparency is one of the great excuses of our era; the belief that something is correct as long as it is disclosed has been used to justify unethical or downright deceptive behaviour by groups ranging from financial advisors to gadget bloggers.

But is does transparency really excuse how we behave? Is a mugger who lets you know they are stealing your money more ethically correct than a pickpocket or shoplifter who steals it by stealth?

This idea of disclosure excusing everything was introduced by the financial industry in the 1990s, the idea being that an informed market can make rational decisions and if your advisor disclosed they were receiving kickbacks from a funds manager you could make an investment choice in the knowledge of this.

Of course this failed dismally, partly because these disclosures resulted in an avalanche of densely written, small font paperwork that became another level of opaqueness to baffle investors and consumers. The very concept of transparency was used to baffle people.

We saw this idea spread across the consumer economy where all manner of unfair contracts by telcos, finance companies and other service providers were justified by a nest of gotchas in their “transparent” contracts and terms.

On the Internet, the idea of transparency becomes even more complex. In theory we can Google anything and find the background of any individual or business but in reality we find the weight of information makes it harder to find the background of a comment or post.

Most people quite rightly can’t be bothered researching every post to see if the poster’s been taking freebies or convicted of spamming. It’s simply too time consuming an issue.

In a perverse way, search engines can make the web even more opaque as paid or sponsored web pages or blog posts crowd out objective views on an issue or business.

The danger is for most of us that the illusion of transparency lulls us into a false sense of security. As consumers, we think that all is well because there’s no obvious disclosure of conflicts of interest. If we have these conflicts of interest, we think they are okay because we’ve disclosed them in the fine print.

Either attitude can bring us unstuck when the conflicts become apparent and all the alleged transparency won’t save us from the damage to our wallets, reputations of trust.

Transparency’s important, but acting honestly and ethically is far more essential in a trust based society.

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