The things you do more often are the things you’re going to get good at. So if you get really good at spending money, you’re going to be really good at spending money. If you have to work on making money from day one, you’re going to get really damn good at making money. And that’s what you need to be as an entrepreneur…
The problem I have is when companies’ business model is free only. And then they say, “We’ll figure out how to make money later.” As if there’s going to be this magic switch they can flip…If you’re not practicing making money, you’re not going to be able to flip that switch and just know how to do it really well. You need to have some time. You need to have some experience at making money.
Dylan Bennett
on 19 Nov 10This is so true. In fact, I think it’s one of the things that the old media industry needs to learn. They seem to think that “free content” means “no money” when, in fact, it simply means they need to learn new ways to make money, and really keep working at it!
They’re really, really good at making money using the old models and old expectations that customers have on the value of their content. But they’ve gotten so good at those old models that they’ve forgotten that their “old models” applying to “scarce” (read: pre-Internet) supplies were once “new models” and someone had to work out how to make them profitable.
If they were, as you said, constantly working on and practicing ways how to make money, they would probably be working out more agile business models that keep closer pace to changing technology.
And I think this is also the other side of the coin for people who demand that media content be free. Well, it’s not like the media companies can flip a switch and just make the content free and still stay in business. They need to figure out how to make it profitable other than charging the customer for the content itself. Until they figure that out, it’s not going to be free. Unfortunately, as I mentioned above, they’re just not very good at figuring those things out.
Merle
on 19 Nov 10We are seeing what you get when people demand free product from the media companies and it is not too watchable or listenable.
pb9
on 20 Nov 10Sort of but I like the quote that “usage is oxygen”. Usage both shows that you can create something that people want as well as helps you figure out how to make things better. You don’t want to risk not getting enough usage in order to make some unnecessary revenues. It’s harder to get usage than it is to make money from usage.
James
on 20 Nov 10We get it. You guys beat the same drum over and over and over. Try something original. You don’t like VC, and you don’t like the freeium model. I think the industry gets that. Now say something new.
Michael Sliwinski
on 20 Nov 10@James – Jason and the rest of the crew repeat it over and over again yet so many “startup” owners still don’t get it. They need more repetitions.
Want to learn something new? Just come to 37signals masterclass. I thought I knew all about these guys – I’ve watched every video from every conference they showed up, I’ve read the blog, the first book (getting real) and the second (rework) and yet today while going through their workflow together I learned a ton of new stuff.
So Jason, keep on talking. We keep on learning. Had a great time today.
Marij
on 20 Nov 10So you charge to use the shitty 37s services – bid deal. You arnt doing anything amazingly brainy. Get over yourselves. You have bad a lucky head start, but my guess is that if you hot air bags had to start over from scratch, you would crash and burn. Nobody wants to bear from a group of homosexuals who drink tea and smell each others farts.
Nathan
on 20 Nov 10So did anyone at 37 see the office on thursday – where Ryan has a start up called wuph and is getting funding from the other workers
Jeff Lam
on 20 Nov 10Been a fan of 37signals and Jason’s ideas for a while now.
Awesome quote/video. Makes a lot of sense, plus help me objectifiy what has been in my mind for awhile now: whether web businesses providing things for free first, and thinking of charging later, can do it.
Notably, this applies to Facebook and Twitter. I guess Facebook solved that with advertising, but can it really sustain? Honestly, as great as Facebook is and seems to be, I wouldn’t be surprise if it closes shop within 10 years.
I might be horribly wrong though, seeing how Google is heading. If Facebook continues it’s innovations like Google, then it should probably be okay.
Marlj: Why so much hate? Chill down dude. Don’t use degrading vulgarities; provide your reasons.
Dylan
on 21 Nov 10Not aimed specially at Jason, but the Facebook bashing is boring. So what if it’s not profitable yet. So what if it closes shop in 10 years. The site has changed the lives of millions of people around the world. Mark has created something of value that’s genuinely useful to so many people. The world is a better more interesting place because of it etc etc etc. Ditto Twitter.
Trent
on 22 Nov 10I couldn’t agree with this more. Keep up the good work!
Tim
on 22 Nov 10Great insight. Great.
This discussion is closed.