Free

Free For You… At First

Garth Beyer

I first noticed with Facebook, what was once a free service, an incredible platform to build your business, to market, and to gather a tribe, reaching out to the mass has turned into a profiting market for sponsors, advertisers, but specifically, Facebook.

It wasn’t always that way. Or at least, it hasn’t always been done right.

Newspapers companies started out reaching the mass, then they implemented (full-force) advertising in the papers, viewership slowly decreased and now newspapers reach a niche market while advertisers still make money.

The moment when newspapers focused on getting their income from advertising and making it a competition among advertisers for space is what I call Free Fall Out. It was at that moment the newspaper companies profit largely due to advertisers. From there is the critical moment that I believe is a large reason why the newspaper industry is dying.

At their prime, the newspaper industry used the money from advertisers to advertise their newspaper even more. Much like many businesses (even today, gasp!) businesses are taking their advertising revenue to create more advertising for themselves.

This seems to be a slow profit method.

Now let’s look at Facebook. Once a free platform, now has been opened to advertisers. Rather than Facebook using the revenue from advertisers to self-advertise, I see a new Facebook platform change nearly every month.

Facebook, while still funding advertising, has put more of an effort toward improving it’s interface to attract a larger newer audience. I think this is smart for one specific reason. It doesn’t so much matter if they lose their appeal to current veteran Facebook users, because new users are more susceptible to buying into the advertisements that Facebook profits to put on your screen.

By improving the platform, they can make more from letting others advertise rather than the old newspaper age belief that by advertising more, they can make more from letting others advertise.

I look forward to seeing how the newest version of Gmail pans out. Right now promotion emails go into the promotion category. What happens when a wealthy company says to Google that they will pay them X amount of dollars to have their email placed in the primary category?

Alas, every phenomenal service is free for you… at first.

 

Stay Positive & Don’t Forget, You’re The Real Product

Garth E. Beyer

My Secret Obsession: Starbucks (Not their coffee…well..that too)

Garth Beyer

I was in New York last week for Seth Godin’s Pick Yourself event. Instead of writing a post about that, (which I will soon), I couldn’t help but write about the one thing that you see every 72 steps in any direction: Starbucks

1 out of 3 Baristas laughed. 2 actually thought I was named Voldemort

Guy Kawasaki, a likely idol of both of ours, had written an article telling how important mantras are and that the shortest are often the sweetest. The example he used for the greatest mantra from the greatest company on the planet is  Starbucks – “Rewarding Everyday Moments”

I apologize for those who disagree,  I can’t help but side with Guy. Starbucks is the the real deal, the perfect role model and incorporates every trademark of a successful company. For example, my friend (who works at Starbucks) had told me this story the other week.

“The other day in the drive through this woman wanted a small but ordered a venti because she thought it meant a small. When she was shocked at the size and the price, my manager told me to  just charge her for a tall. So many other places you just don’t do that. It’s always a pleasant surprise to people you meet at work when you get to be nice.”

Starbucks revolutionized coffee and the experience of getting it. Put together a CEO and marketing mavens and you get a company like Starbucks; who defy all logic and assumptions and who have altered the beverage marketplace by defining quality, creating convenience and most importantly, having heart.

That is why I couldn’t complain after every 72 steps when I would look up at see the Starbucks sign. The beauty of Starbucks is that it is available to the masses – “from the student who wants a latte to the CEO who needs it.” More importantly, it represents that you can find generosity, people who care, tentativeness and truly great people – in abundance. Simply walk 72 steps in NYC and you will know what I mean.

Starbucks also signifies risks.

“When Starbucks and other companies made stock options grants back in 2008, there was no guarantee that the companies would succeed. Performance was not a sure thing,” says Starbucks spokesman Jim Olson.

It was less than a sure thing, it was unexpected. It was an occurrence that only the greatest companies could actually leverage. In this case, Starbucks succeeded and continues to do so.

Stay Positive & I Solemnly Swear That Starbucks Is Up To Too Much Good

Garth E. Beyer