Key Economics Lessons For The Digital Era
from the things-to-remember dept
Jeff Jarvis has a series of short notes that he's put together on "hard economic lessons" for the news business, but many of them apply to pretty much any industry -- and it seems worth pointing some of them out for discussion:- Tradition is not a business model. The past is no longer a reliable guide to future success.
- "Should" is not a business model. You can say that people "should" pay for your product but they will only if they find value in it.
- Virtue is not a business model. Just because you do good does not mean you deserve to be paid for it.
- Business models are not made of entitlements and emotions. They are made of hard economics. Money has no heart.
- Begging is not a business model. It's lazy to think that foundations and contributions can solve news' problems. There isn't enough money there.
- No one cares what you spent. Arguing that news costs a lot is irrelevant to the market.
Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Filed Under: digital, economics, journalism, tradition
Reader Comments
Subscribe: RSS
View by: Time | Thread
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re:
Citizens have a right to complain because we pay taxes. This is supposed to be our government and when they misbehave it is our duty to complain.
[ link to this | view in chronology ]
Re: Re:
The concept of paying taxes reinforces the same mentally amongst the rich and entitled that paying money means you deserve something. "I spent $50,000 on this luxury car, so I own the road!" "I paid lobbyists to push this bill on Congress, so I deserve the benefits that it brings me!"
If money has anything to do with politics, it's always a bad association because more money equals more influence. If financial contributions to political candidates are free speech, then more money equals more free speech.
Some rich people actually do pay more taxes than us little guys, but they obviously don't deserve more influence on the government than we do.
[ link to this | view in chronology ]
Re:
Techdirt calls out all sorts of businesses and people for going against those lessons listed. If you want to call that "bitching," go ahead. But it's the people and businesses that ignore those points who do the most bitching.
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
[ link to this | view in chronology ]
Unfortunately BS is a viable business mode for Trump, Jarvis, Mike....
I can't really blame Mike or Clay or Trump for doing it, but it's just a publicity stunt, not wisdom.
[ link to this | view in chronology ]
Re: Unfortunately BS is a viable business mode for Trump, Jarvis, Mike....
[ link to this | view in chronology ]
begging to differ
On another level, people enjoy supporting artists and projects they like, even ordinary people without much money. Giving money to cool projects is a way to participate in them, be connected to them, be a part of them, and it feels good for everyone. That's why crowdfunding works. It doesn't work for everything, of course; but no business model works for everything.
[ link to this | view in chronology ]
Exactly. I don't care if you spent a million dollars on a toothpick, don't make it my problem. I don't want your IP laws imposed on me.
[ link to this | view in chronology ]
Contradicting yourself?
Mike, you've always made the point that price and value are distinct, so that something can easily have great value, yet no price.
However, you're statement above contradicts this. Which is it?
[ link to this | view in chronology ]
Re: Contradicting yourself?
"Jeff Jarvis has a series of short notes..."
these are not by Mike, furthermore mike even points out he doesn't like all of them:
"much of which I agree with (a few I think are slightly misleading or wrong..."
[ link to this | view in chronology ]
Re: Re: Contradicting yourself?
price =/= value
in the same way that
effect =/= cause
supply =/= demand (the concepts there-of, specifically)
price is what you ask for something. value is how important having it is to the person you're asking to pay the price. the heigher the price is set, the more the person must value the item in question before the'll pay the price in order to obtain it.
[ link to this | view in chronology ]
Re: Re: Contradicting yourself?
How about you STFU? Capiche?
[ link to this | view in chronology ]
Re: Re: Contradicting yourself?
How about you STFU? Capiche?
[ link to this | view in chronology ]
Re: Re: Contradicting yourself?
[ link to this | view in chronology ]
Re: Re: Re: Contradicting yourself?
Chargone responded as well to ComputerAddict's post before you posted anything and therefore his post appears before yours.
[ link to this | view in chronology ]
Re: Re: Re: Re: Contradicting yourself?
Frankly, with a stinking attitude like that, I couldn't give a monkey's whether ComputerAddict was right or not.
Thanks for the forum clarification. :)
[ link to this | view in chronology ]
Re: Re: Re: Re: Re: Contradicting yourself?
Pot, meet Kettle...
[ link to this | view in chronology ]
Re: Re: Re: Re: Re: Re: Contradicting yourself?
[ link to this | view in chronology ]
Re: Contradicting yourself?
[ link to this | view in chronology ]
Re: Contradicting yourself?
Every item has two values and a price. There's the value the item has to the seller, and the value the object has to the buyer. The price is negotiated between them.
In order for a sale to occur, the negotiated price must be less than the buyer's value, and greater than the seller's value. If this is not possible, then no sale occurs.
Your 'contradiction' is simply a case of the seller valuing something higher than the buyer. No sale occurs, no matter how much the seller might want one to occur.
[ link to this | view in chronology ]
Re: Contradicting yourself?
There's no contradiction. People won't pay for something unless it has value, but that doesn't mean that if it has value, they'll automatically pay for it. So, yes, something needs to have value if you want people to pay for it. But that doesn't mean value and price are the same thing.
Does that make sense?
[ link to this | view in chronology ]
Re: Re: Contradicting yourself?
Perhaps it's the way it was worded, but it didn't read right to me initially.
[ link to this | view in chronology ]
Value is determined by need. What problem do you solve?"
These are my big criticisms of modern commerce. People seem to think that advertisements should create demand when they ideally only publicize supply.
It's like retail store management pushing employees to make more sales. I consider it unethical to pressure people into buying more. If they want or need it, they should be free to decide on their own.
[ link to this | view in chronology ]
Do people really think that "giving money to cool projects is a way to participate in them?" Does this really qualify as participation?
[ link to this | view in chronology ]
Costs can be a selling point though
If you are raising money for a child on life support, part of your pitch is probably going to be, "This is so expensive that the family can't afford to pay for it without help from donations."
Or if you are selling a luxury good, you will likely say, "This item is made from a rare wood that requires a team of 10 people trekking into the wilderness for 9 months to harvest it and bring it back to civilization."
[ link to this | view in chronology ]