11 Things Worth Paying for Online

Here’s something awesome…the Internet is still (mostly) free. Despite the sometimes mammoth costs of launching and maintaining a website, social media campaign, or interactive tool, the cost has remained about the same. In same cases, it’s actually become less expensive.

As the end user, just about everything is free, even though we know darn well that it’s not free to create. There are technical people, writers, designers, marketers, and everyone else…all working together to create stuff online. Some of it is supported by advertising and some of it is paid for by the target user.

So why would you pay for anything online? Well, I guess there are just some things worth paying for. Here are 11 things I’m willing to pay for (and maybe already do) on the web.

It’s worth noting that almost all of these are freemium services. That basically means that you get the core service for free. If you really like it, you can pay for an upgrade. Freemium is the ultimate in “try before you buy” solutions for brands to market themselves and their services.

Top 11 Things I’m Willing to Pay for Online Continue reading

Top 5 Things I’ll Pay for on the Web

As the bad economy grinds on, there are massive shifts in all industries. Many good websites have been funded (in part) by advertising, venture capitalist funds, and subscription models.

But as these revenue channels evaporate (for some websites), we’re seeing a shift in the Net economy. Good services need to find a proper revenue stream. And…get ready, gang…some of these websites are going to eventually charge a fee.

Apple’s iTunes Store and Amazon’s Kindle 2 are slowly making it possible for certain sites to turn a profit on micro-payments. But those sites sell stuff. For other sites, we’ll see a greater emphasis on Freemium models.

It got me thinking about what I would be willing to pay for, so I compiled a list of:

Top 5 Things I’ll Pay for on the Web

1. Email.
Yes, I know email is free. But I would be willing right now to pay for GMail, if it promised greater security and features. They provide an awesome service, but we’re still computing in the cloud, which makes email particularly vulnerable. Think about how many emails you’re getting that could be giving tiny bits of financial, health, or security information away. I’d pay to upgrade to something that would offer a greater level of security and privacy.

2. Electronic Health Records.
The Obama administration has placed a strong emphasis on building up the infrastructure of our health system. With that is an even stronger focus on electronic medical records (EMR). Right now there are several companies offering free EMR tracking solutions, including Google, Microsoft, and some health insurers. They’re going to have to get paid from someone, and if they’re not charging YOU for YOUR information, where will they get their money? I’d pay for EMRs that hire good quality employees and conduct full background checks.

3. Reviews.
In the old days, professional journalists were hired to be product and movie review experts. There was an editorial system of checks and balances to ensure that newspapers and magazines were unbiased. Consumer Reports was famous for not accepting any advertising, so you had to pay for their reviews. Now, to be a reviewer, all you really need is an opinion and an email address. There are hundreds of sites hungry for content, so they accept submissions from reviewers with no experience. These reviews may be spot-on or they may be looking to build a personal network, reputation, or whatever. In my experience working in pop culture, I’ve found that SOME reviewers are frustrated creators, offering opinions on stuff they think they can do better. Not all, some. But it’s that minority voice…the one with an axe to grind…that can damage a creator’s career and reputation.  So I’d be willing to pay for reviews on a site where professional reviewers were (a) experienced, (b) unbiased, (c) well-rounded, (d) had editors, and (e) were paid for their professional opinions. Check out Johanna Draper Carlson’s article How to Review.

4. Cloud Computing & Software as a Service.
My trusty old G5 Mac is still running classic boxed software. But as the line begins to blur between the desktop and the web, we’re seeing better software options. Right now, Google, Microsoft, Zoho, OpenOffice, and a dozen other sites are sharpening their software solutions. Eventually, as things shake out, we’ll see some clear leaders. Personally, I enjoy having my Microsoft Office 2008 for Mac. It works, even when my Internet connection doesn’t. Google Gears is already offering a similar solution, but it’s just not as robust as I’d like. Some people find the deep tools on Word and Excel to be overkill for their needs. Not me. I use power tools and look forward to the features that some people deride as bloatware. To me, these improvements are essential for solving editing, analyzing, and other business challenges. I would pay if Microsoft, Zoho, Google, or anyone could offer me (a Mac user) a full software solution with a reliable bridge between the desktop and the web.

5. Content.
Right now, nearly everything I consume online is free. News, videos, professional development…all free. Pretty amazing, considering how much it costs to create good quality content. Eventually, this model will change. Maybe ads will pay for everything, which would be like the broadcast TV model. Or it will move premium, like the cable TV model. Either way, someone has to pay for the content I want to consume. For example, I go to CNet nearly every day for tech news. CNet is an essential part of my need to stay on top of tech trends, so I have a professional motivation for keeping up with their content. And given the choice of seeing my favorite sites go out of business or paying a small subscription fee…I’ll pay the subscription.

Of course, all of this excludes services and content I already pay for, including music on the iTunes store and books for my Kindle 2.

If the Internet moved to a pay for service model, what would you pay for?

Oh, and one more thing. I tried to come up with a Top 10 list. The most I could come up with was my Top 5. Tells ya something, right?

Interesting links…not necessarily endorsements:
Five tips on charging for content from Alan Murray of WSJ.com

How can newspapers help Google?

It’s the Content, People.

Newspapers Want Consumers To Pay For Online Content

Freemium – A Net Business Model

Free is great, isn’t it? The Net is packed with free stuff.

Need a free dictionary? Use Dictionary.com. Need some free music? Listen to Pandora. Want some free news? Try CNN.com. Free classifieds? Try craigslist.com. Free phone calls? Dial Skype. It’s all free. I should know, I use all of these sites and services.

And, insanely enough, many applications are free. Years ago, you had to pay for word processing, spreadsheets, and databases. Now, you can get pretty powerful software, all for free.

As I noted in an earlier blog, free isn’t really free. Someone is paying for it in the hopes of earning money. While most of these applications and resources will remain free, there are a few that are starting to turn a profit on the “freemium” model.

That is, it’s free, but to unlock powerful premium features, you gotta pay. Hence, the techronym freemium.

Freemium in My Life

Here are some examples of free and freemium services that I use:

Google Docs - Google ApsGoogle Docs:
Free productivity software. Good stuff. I use it a lot. All free, until I want to roll it out enterprise wide to my coworkers or employees.

And if you use GMail, you may eventually run out of space. Yup, look at the bottom of the GMail window, and you will see a little “% used” message. After you exceed your GMail limit, you may be prompted to upgrade to a paid Gmail account.

Zoho PremiumZoho Docs:
Similar to Google Docs, Zoho is a productivity software suite. Actually much broader and more powerful than Google docs, but not as well known.

Similarly, you can do a lot with Zoho, but if you want more features and space, you pay a Freemium price. I’ve been impressed with Zoho’s software suite and may tap into a few of their premium features.

Flickr PremiumFlickr:
A photo sharing social network. I keep all my photos here. And now, with a pro account, I have greater control over my photo sets and I can upload videos.

Someone gave me a freemium Pro Account for my birthday and now I am addicted to it.

Evernote PremiumEvernote:
A free to use idea-and-stuff capture system. (It’s hard to explain. Check it out.)

A freemium account unlocks more space and flexibility in Evernote and some cool digital camera features.

WordPress PremiumWordPress Premium:
This very blog is based on free WordPress software. The free version allows me to blog on their platform or even install it on my own web server.

But a premium version unlocks some extra features and hosting options.

Will Freemium Work?

Will the freemium business model work? Will people pay for stuff that they are used to getting for free?

Let’s hope that the added features are an incentive to get people to shell out a few bucks. Because eventually, some of these programmers and content creators are going to want to get paid…they have to pay the rent and utilities too.

For now, most everything on the Net is free and freemium features may help to keep it that way.

In the future, freemium features are going to matter a lot. This will be the way that many sites capture revenue…and the way they attract advertisers and partners. (For example, “how many people are registered for the free service vs the freemium services?”)

For more on freemiums, check out:

And, as always, a visit to my personal website at buddyscalera.com is still free

Free Isn’t Really Free

Lots of people, including me, use free applications. This blog is on the free version of WordPress.

But free really isn’t free. There’s always a price.

As Google grows, more people register to use their free tools, including GMail, Google Documents, YouTube, and this little tool called “Search.” Yes, and it’s all free. We love free, right?

Google is a for-profit company that has a responsibility to it’s shareholders and employees. The smart engineers who write the code for these free applications…well, they need to get paid. Everyone needs to get paid.

So how does Google make money? Well, right now, they leverage the immense amount of data that they capture every time we do a search. Or they monetize the content of our emails. Or our social networks. Or our video viewing habits.

And it’s all legal and completely above board. It’s right there in their privacy policy, if you choose to read it. It’s really not Google’s fault if you dont read the fine print. Google is an exceptional company, creates a lot of great of amazing products and does a lot of wonderful socially responsible things. But all this is made possible because they also run a hell of a business.

Google, Yahoo, Facebook, MySpace, YouTube, WordPress and others offer free services with the hopes of getting a LOT of people to register. Then, they monetize it by selling profiling data about how we use their free services. (Note: Broadcast television and radio work in similar ways. Newspapers charge a fraction of what it costs to print and deliver the paper. It’s all fueled by advertising.)

Many people are thrilled that there’s a free alternative to Microsoft’s Office suite. But when you buy their software, you get a certain amount of protected anonymity. Microsoft isnt data mining information from your private Excel spreadsheets, but free services like Google Documents and Zoho can. The front end of these services are free, but they need to find a way to earn a profit. And currently that’s done by aggregating user behavior and selling it to advertisers.

There’s really no such thing as free. And with Internet applications, free is a temporary concept. Eventually, we will all have to pay.