Economics of abundance

Didn’t write tonight. Did go to Tai Chi. It was lovely. Still feeling the itch to write but I have to sleep!

Wanted to share this:

http://www.youtube.com/watch?v=VuxMJ8lnYA4

It’s by one of the main writers at TechDirt, one of the blogs I follow.

One of the things that they talk about (a lot) is the whole CwF + RtB — connect with fans + reason to buy. That’s part of the economics of abundance. And while I can see how it’s applied more easily to music, I am still thinking about how it can be applied to writing. Reading a book is a different experience than listening to a song. So how many of the same strategies can be applied? How many of them should be tried? I don’t know.

Comments (6)

    • No, not really. This is more about how if something is abundant, the price goes down (price is driven by scarcity.) When something is abundant, the price can become $0.

      What they’re advocating is that it’s *okay* if something is $0. Every abundance creates new markets of scarcity. In the music business, if songs are free (digital recordings are abundant) then other scarcities exist for the artist to make money off of (such as T-shirts, concert tickets, special promotions, etc.) They aren’t advocating free as a business model, but rather, that free be a part of the business model, that includes selling things differently.

      Here are a couple of posts about it — the bottom of the first one contains a bunch of links:

      http://www.techdirt.com/articles/20070118/013310.shtml

      http://www.techdirt.com/articles/20061026/102329.shtml

      I understand how this model applies to music — there are many examples of bands doing this — music is free so they make money off concerts. Music is free — but they invite “patrons” to invest in them, so they have the money to make the music, and patrons get other rewards (like free concert tickets, free demo tapes, more access to the artists, etc.)

      There are starting to be examples for books, like Cory Doctrow’s tiered book sales:

      http://www.techdirt.com/articles/20091019/1334396594.shtml

      And Strange Horizons has always worked on a donation model.

      What will happen when e-readers actually become good/useable? No longer old tech (don’t get me started) but truly cool machines? The scarcity of print (physical copies) will no longer drive price. What will? What models are opening for writers?

      Sorry for blathering so long. As I said, it’s something I’m thinking about a lot lately.

      • Ah! This sounds like the premise behind Free, which is a book I read recently with interest.

        I’ve been thinking about it for years also, since I’ve been using free fiction to drive other kinds of sales for years now. It’s a bit of a black box at this point, but there’s money there, it’s just a question of traction and publicity. The latter’s the kicker at this point.

    • No, not really. This is more about how if something is abundant, the price goes down (price is driven by scarcity.) When something is abundant, the price can become $0.

      What they’re advocating is that it’s *okay* if something is $0. Every abundance creates new markets of scarcity. In the music business, if songs are free (digital recordings are abundant) then other scarcities exist for the artist to make money off of (such as T-shirts, concert tickets, special promotions, etc.) They aren’t advocating free as a business model, but rather, that free be a part of the business model, that includes selling things differently.

      Here are a couple of posts about it — the bottom of the first one contains a bunch of links:

      http://www.techdirt.com/articles/20070118/013310.shtml

      http://www.techdirt.com/articles/20061026/102329.shtml

      I understand how this model applies to music — there are many examples of bands doing this — music is free so they make money off concerts. Music is free — but they invite “patrons” to invest in them, so they have the money to make the music, and patrons get other rewards (like free concert tickets, free demo tapes, more access to the artists, etc.)

      There are starting to be examples for books, like Cory Doctrow’s tiered book sales:

      http://www.techdirt.com/articles/20091019/1334396594.shtml

      And Strange Horizons has always worked on a donation model.

      What will happen when e-readers actually become good/useable? No longer old tech (don’t get me started) but truly cool machines? The scarcity of print (physical copies) will no longer drive price. What will? What models are opening for writers?

      Sorry for blathering so long. As I said, it’s something I’m thinking about a lot lately.

      • Ah! This sounds like the premise behind Free, which is a book I read recently with interest.

        I’ve been thinking about it for years also, since I’ve been using free fiction to drive other kinds of sales for years now. It’s a bit of a black box at this point, but there’s money there, it’s just a question of traction and publicity. The latter’s the kicker at this point.

Comments are closed.
%d bloggers like this: