A good portion of this industry is still trying to figure out how to make money for the first time (hint: charge people). But for those who’ve mastered that, I want to talk about the next step: making money twice (or three or four times).
Making money off original content isn’t hard as long as you aren’t afraid of making money. You can sell it, you can offer subscriptions to it, you can talk about it, etc. But what’s more interesting — and easier — is making money again of something that already made you money before.
Repackaging
Repackaging allows you to earn money multiple times on the same content. It’s a great way to grow your revenues without significant marginal cost.
Money One: A lot of our ideas originate on this blog. We post articles which generate traffic. We make money off the traffic by running Deck ads in the sidebar. We make a few thousand a month off The Deck ads.
Money Two: We bundled up the best blog posts about our software development philosophy and turned it into a PDF book called Getting Real. We sell the PDF for $19. We’ve made a few hundred thousand dollars from the PDF.
Money Three: We take the Getting Real PDF and turn it into a paperback at Lulu.com. We sell the paperback for $25 and we make a few thousand a month on royalties. The paperback is currently ranked the 4th best seller on Lulu.
Money Four: We took the content from Getting Real and produced a Getting Real conference series. We held a few conferences a year and made about $50K per conference. We’ve produced about 5 of these conferences.
It adds up
So if we add this all up, we made about $100K on The Deck ads (The Deck has been around about two years and we are a founding partner), $350K on the Getting Real PDF, about $65K on the Getting Real paperback, and about $250K on the Getting Real conferences (before that they were called Building of Basecamp).
That’s roughly $765,000 over a few years off roughly the same content. Insight and ideas about how we run our business. Blog entries, PDF, paperback, and conferences.
We probably could have done a few more things and pushed that total over a million. Regardless, making a little extra here and there over something you’ve already produced is a great way to grow revenues.
ML
on 23 Sep 08I think there’s another aspect to this too: Each time you repackage content and market it again, you breathe life into it. You reach a new set of people.
You can’t expect everyone to be obsessed with you. Just because you said something once doesn’t mean everyone heard/read it. To reach past the “front row,” you often need to make multiple impressions before your message gets through. The fourth time you repackage (and market) something will, for a lot of people, be the first time they notice it.
jan korbel
on 23 Sep 08Good post, Jason and thanks for the point ML.
BTW, you have unclosed a href tag after ”...a paperback” link causing the hover link efect.
Maurus
on 23 Sep 08This might be a good example but not a very nice one. When I remember correctly, Getting Real was first only available as PDF. For the people who bought the PDF but prefer books, this was disappointing because they had to buy the book twice.
It would be interesting to know if this was planned or if it was an accident?
Raheem
on 23 Sep 08Great post! Its cool that you breakdown the numbers.
mf
on 23 Sep 08interesting indeed. but making money is not everything – what were the costs, what was your revenue?
wade
on 23 Sep 08You’re also refining the content on every repack, which helps you understand your own processes and thoughts.
Charlie
on 23 Sep 08@Maurus -
A lot of people want to own the blockbuster on DVD the day of its theatrical release, but have to settle for “buying” it twice (ticket now and DVD a few months later).
PDFs are just really easy to make. I’d be surprised if there was any kind of money-grubbing strategy behind releasing it first
Allan Branch
on 23 Sep 08Jason, thank you for sharing actual numbers. Very cool, I’m totally green with envy.
ML
on 23 Sep 08You’re also refining the content on every repack, which helps you understand your own processes and thoughts.
Great point Wade. We keep honing and refining the message with each step.
For the people who bought the PDF but prefer books, this was disappointing because they had to buy the book twice. It would be interesting to know if this was planned or if it was an accident?
Maurus, it wasn’t planned. We got the message out ASAP in PDF form. When we saw it had some juice and there was a demand for a paperback, we released it in that form too. Like Charlie mentioned, content is often paid for twice if a consumer desires it in different formats.
Alex Young
on 23 Sep 08You should do a 37signals Live on this topic.
Zach Leatherman
on 23 Sep 08Great transparency here! You don’t see too many companies so up front with their numbers.
JF
on 23 Sep 08or the people who bought the PDF but prefer books, this was disappointing because they had to buy the book twice. It would be interesting to know if this was planned or if it was an accident?
No one had to buy anything twice. If you wanted the content at launch, the PDF was the way to get it. If you eventually wanted a paperback, you could buy the paperback, but the content was the same so there wasn’t anything new. You didn’t have to buy anything to get anything new. If someone wanted both the PDF and the paperback they made a choice to buy both.
We didn’t really have a plan when we launched the book. We just wanted to get the content out as quickly as possible, and a PDF was the way to do that. Then later on we discovered we could turn it into a paperback on demand so we did that.
Frak
on 23 Sep 08I made $75 just yesterday by being a slave to my clients. And I get to have them berate me over the phone at my own expense! I love being a web designer! Clients rule!
(Please, someone handcuff me and throw me in a pool. K, thx, bye.)
Don Schenck
on 23 Sep 08Jason—Wow … fantastic post! It’s very encouraging.
@Frak: I’m right with ya, bud… :(
Jay
on 23 Sep 08Thanks for sharing the way you grow your business. It makes sense to provide as many options as people are willing to come back for.
Benjy
on 23 Sep 08I’m waiting for the movie version of “Getting Real”...
Dennis Eusebio
on 23 Sep 08I had a great idea for authors that wrote more on the philosophy and theory of things.
What if you had an app that would (without releasing or mining private data) analyzed your emails for the day and provided you with an appropriate “ism” or “theory” from the book that could help you. It could send you an email the next morning, or at the end of a day.
Just another way to keep the info fresh and relevant.
David Ulevitch
on 23 Sep 08This is easily the best post I’ve ever seen on SvN.
It’s a great post with a great example with a message that is rarely discussed but is often a cornerstone of any great business.
Liz Fraley
on 23 Sep 08This is something that we’ve been doing in Documentation for a long time. Write once-Use everywhere. Write in one source, produce PDF, HTML Help, HTML (web), put it back into the product source code (you’d be amazed at the variety here). Generate initial source out of the source code or the bug database. Reuse some in the marketing docs. Reuse more in the support database or the knowledge base or the field alerts, etc.
And, if you’re localizing, the cost reduction is 75%, when you have one source you’re generating everything else from.
Meanderthal
on 23 Sep 08ML said:
Or, for those that did notice, you risk appearing repetitive and to some (not me), arrogant, self-righteous, and money-hungry.
Great post. Making me think in new ways.
Roy
on 23 Sep 08I think that the repackaging here reflects very well how 37signals works. No or little “planning”, see what works, launch it and don’t reinvent the wheel if you don’t have to.
Jake
on 23 Sep 08Hey, Just thought a lot of people reading this blog would be interested in an event taking place Nov 17 – 23 called Global Entrepreneurship Week. It involves people interested in entrepreneurship from around the globe getting together for events and activities meant to celebrate, encourage and facilitate young people’s entrepreneurial spirit. If this sounds interesting you should check out unleashingideas.org. Thanks.
Sean Iams
on 23 Sep 08To ML’s point:
This relates to PT Barnum’s opinion of advertising:
If you’ve got an idea or product then make sure its heard and consumed by as many people as possible in as many ways as possible. Don’t put it out there once and proclaim, “Ok, I’ve advertised, promoted, and distributed it, and hopefully enough people have heard.”
In other words, don’t half-ass it. If you do it half way, then a large portion of opportunity will be left unclaimed, and much of your hard work will go unrewarded.
BS
on 23 Sep 08@Frak and Don… I’m right there with you boys. I read JF’s comments from Web2.0 over the weekend about how client work is unsatisfying… and I could not agree more. Gotta get some of our own product ideas out there… just to see what may happen.
Jakub
on 23 Sep 08hight time to move forward and create something new!
Wendy
on 23 Sep 08Thanks for this detailed and encouraging example.
I struggled for awhile with the idea that everything I did as a business owner had to be “original.” So I had a negative (and entirely unrealistic) idea that, say, repeating the content of a blog post in a newsletter would be coasting, or cheating somehow. Or that repackaging free content into a paid product is somehow unfair.
How freeing it is to admit that I was mistaken! One concept I like to keep in mind as I repeat/repackage/etc (and I’m fairly new to it) is that I want to deliver value at every level—not the SAME value, but SOME value.
I’m sure this philosophy informs the Getting Real products and services as well—the people who purchased the book got valuable information from it, but not the same as the folks who attended a conference (which is as it should be, and creates several different entry price points, including free, as Jason’s numbers clearly illustrate). Everyone wins! I love it!
BH
on 23 Sep 08Wow – you’ve perfectly summed up why I rarely read anything from 37 signals any more. The ‘make money twice’ subject caught my attention this time.
From you guys, it’s the same stuff over and over and over. It’s great the first time you read it, and see your refreshing thoughts… but I get the point!
You guys are kind of like ‘The Dog Whisperer’, there’s only so many times you can hear about the importance of having a ‘calm and assertive energy.’
Jin
on 23 Sep 08I say you repackage this blog as “Getting Real Clear,” with slightly watered down content. After readers’ hate mails roll in for a few months, revert the blog back and label it as “Getting Real Classic,” and slap on twice as much Ads.
profit.
:)
Dhrumil
on 23 Sep 08I love posts like these. Especially in an industry filled with people who thinking that charging an honest dollar for a service is some how arcane.
Andy
on 23 Sep 08Monetizing original content needs one absolute requirement which is interesting and useful content that people want to read. I’ve found many of the S2N posts refreshing, honest and opinionated and with a special meaning because you are actually living the words.
Keep up the great posts and the transparency that’s made you into a thought leader.
Tim Jahn
on 23 Sep 08Important to remember that you repackaging content doesn’t make you a greedy money hog. As others have said, you can reach brand new people (and connect with even more people) each time you repackage your content for other uses.
yohami
on 23 Sep 08You made my day here.
I am your consumer
on 23 Sep 08We are your consumer, should we be feeling totally **ed up the backside for consuming the same content (and paying for it) 4 times over, then reading about in a warm puffy cloud of a blog post. You know, if say Microsoft posted a blog like this people would probably hunt down Bill and abuse him many times over.
David William Edwards
on 23 Sep 08Why not have the book recorded and have another income stream? I’ll volunteer!
David William Edwards
Chris
on 24 Sep 08What’s with all the violence here? People complaining about 37s making money with a product?
Seriously?
They’re not FORCING you to buy all four products. They’re offering you different solutions, even a free one!
Oh well. We all know companies are evil anyway. Break out the pitchforks, etc.
Karl S.
on 24 Sep 08Brilliant and thanks for the reminders on ways to monetize content.
I agree w. @David William Edwards re: recording the book as another income stream. You could do the same with the conferences and sell them either as CDs or DVDs.
You could also post that content on a password-protected site where you charge a monthly subscription fee for access.
Also, you could reformat the Getting Real book (which I bought, BTW) and turn it into an e-course which would be another revenue stream.
You could start a monthly teleseminar series that you charge people to attend, then record those, give them for free to those who were on the calls and sell them as a separate product for those who were interested.
Finally, you could start a coaching program for people who want to learn how to run businesses the “Getting Real™” way.
The possibilities are endless and as long as you keep marketing there will always be new people who want to learn. Congrats and thanks again.
Smarter Than The Average Bear
on 24 Sep 08Wow, I feel pretty smart!
Somehow I saw through all the marketing and only paid once for the content, versus some others who were evidently blinded by the sheer marketing genius of 37Signals and paid multiple times for the same thing in different formats?
Honestly, I don’t see a problem with what they’ve done? If I read a book, I don’t expect the audio CD for free, or a free ticket to the movie, or a commercial free showing of the TV series.
Additionally, with each format shift, they’re hitting a different segment of the market (albeit with some overlap, since some people seem to be falling over themselves to pay 37Signals over and over for the same thing), which only makes sense from a business/marketing side.
Rob
on 24 Sep 08Thanks for sharing real numbers, Jason. It’s great to see proof that useful, original content really does pay the bills. Kudos!
Adria Richards, Aden Networks
on 24 Sep 0837signals’ wisdom and insight is one of the main reasons I quit my job. After reading “Getting Real” in 2005, signing up for my first Basecamp project and then watching my boss rush off to Chicago to pay $800/head for him and the developers in hopes of learning the “essence” of 37signals I knew the following:
1. 37signals had something unique
2. 37signals was open to sharing their success
3. 37signals valued their skills and charged appropriately
4. 37signals had a master plan for their business success
5. 37signals was focused on positive thinking
Since they were based out of Chicago, this was visible proof that you didn’t need to be in Silcon Valley (or Alley) to make it in the technology field.
They were also a small team so this supported my feelings that the goal of business wasn’t about size but performance.
I love the raw, real, authentic and honest information from 37signals on the Signal vs Noise blog. Some people are haters; others are scared so they point, stare and gawk at the success but…all the steps are right there for them to pick up and use in their own business.
I just had a client thank me for sending him a link to “Getting Real”
9/22/2008
I have been inspired by 37signals to not give a sh*t what cowards, bs’ers and liars think; feels great :)
Marius Mathiesen
on 24 Sep 08The term “Same shit, new wrapping” comes to mind. Eagerly awaiting the Getting Rich, Collector’s Edition™, consisting of all of the above, plus a signed T-shirt.
Jokes aside, this really is interesting stuff!
René
on 24 Sep 08I would buy it (as long as I get the T-Shirt) ^^
Toto
on 24 Sep 08What about the DRY principle (Don’t Repeat Yourself)?
(joke of course)
Andrew D
on 24 Sep 08Brutally honest.
Online hry
on 24 Sep 08One word – Great!
bp
on 24 Sep 08I think I heard about this in a rap song:
We’re so great and we’re living in riches, don’t forget to upgrade your basecamp, bitches!
GeeIWonder
on 24 Sep 08Good post.
Counterpoint questions—do you think people who get the content once for free, once for $5, once for $50, and once for $10 might feel ripped off? Does doing this help or hurt your brand? Does, effectively, changing the pricing lead to more or less buy-in/confidence?
How much purchasing action do you remove by that?
37signals’ wisdom and insight is one of the main reasons I quit my job.
Hope that works out for you.
Cosmin Ghiu
on 24 Sep 08— bookmarked on delicious. found article from friend on Twitter.
This is such great info. Invaluable at the fact that 37Signals bares itself like this.
n0mad
on 24 Sep 08Interesting thing, I read the online free version, then decided to give my money to the company to get the PDF. It’s good to have and it is my choice. I’m considering getting the paperback also. Some people say they’re wrong for making money, I say I voluntarily gave that money for something I wanted. Wow, capitalism, novel concept. I get value, the seller gets value.
mickeyckm
on 24 Sep 08Totally agreed. I did the same thing as well. :)
Shawn Oster
on 24 Sep 08You forgot the basic fact that even your original blog posts were just repacked and combined versions of agile techniques already being used by companies out there.
There is absolutely nothing unique or original about the ideas of “Getting Real”... except of course the packaging and presentation which made the concepts accessible & repeatable to a broader audience.
Honestly I used to think 37signals was a sham, a slick pyramid scheme since many of us have been “getting real” for years before the first 37signals blog post but one day the light bulb went off when I realized how concepts and practices that used to be confined to small agile development conferences were now being bandied about by designers, PMs and CEOs. That is the butter right there.
Be Careful Extrapolating
on 24 Sep 08Just because 37signals was able to do all these things doesn’t mean that anyone else necessarily can. You have to have a huge audience to begin with, and if you don’t have that, you can repackage all you want and you still won’t earn anything real.
Ryan Walker
on 24 Sep 08I think the re-packaging is changing the appeal to different bands of customers/consumers.
A quote that I gleaned from a talk by the mySQL CEO. “You need to support 2 types of customers:
(1) Those who want to spend $ to save time (i.e. conference attendees)
(2) Those who want to spend time to save $ (i.e. pdf e-book buyers)”
Matt @ Kurb
on 25 Sep 08deadly killer sniper assasin post! nice! It’s all about leveraging what you got innit?
Chris
on 26 Sep 08Why dont you get real cheezy and sell shirts and coffee mugs while you are at it.
It is nice that you made money but I am not so sure you should be laying all this out for everyone to see.
Basically bragging about people getting suckered into buying PDF’s or retread material is not a good message to send to people.
Very odd post indeed. Good luck with that.
Bob
on 26 Sep 08Some of these replies are down right ignorant. “good post” “I bought the PDF and will buy the book” Are you people for real? Or are these posts from 37 signal staff? I would not be surprised at all.
Now a novel post would have been to describe how you were able to raise this money for a charity – like all those people in the gulf areas that have no homes, etc.
Let’s face it, you clearly admit the material is hacked up and sold. Had you not shared this fact with everyone, then what you did, or how you did it would not matter because no one would have known.
Now that we all know – and can see the greed and manipulation, I am not sure I would ever consider doing business with anyone at 37 signals.
A great story would have been – we got creative with some used material and donated x % to a worthy cause. I am not a socialists and I am all for profit but if you wanted to build your selves up a little more, the charity thing would have been a nice to see.
Something to think on 37 signals…
Abhijith
on 26 Sep 08smart way to make money ! Thanks for the insight!
Isaac Szymanczyk
on 26 Sep 08I applaud your transparency. It is truly wise business, and if it’s something people are willing to pay for in multiple formats, then there’s nothing wrong with it.
The really interesting part is that the same method is true in your product development and marketing. You have to-dos, calendars, milestones, Writeboards, reminders, contacts, messages, and file storage assembled into various products that just repackage them in different formats and combinations.
It’s the single loudest complaint I hear from users everywhere of your products, and one that I echo. You have to pay $24 to Basecamp, $12 to Backpack, and $12 to Highrise each month to use the full set of Web tools 37signals makes. And then, you’re paying $48 a month for a lot of overlap and confusion about which pieces to use.
But it seems to work. What frustrates customers is paradoxically what keeps them coming back.
Kirk
on 27 Sep 08And what about ‘Getting Real’ the musical?
Michael Cavitt
on 28 Sep 08I found the post to be useful in helping me further my business plan. Thanks.
Whether it is business, politics or anything where people have the opportunity to express opinions, I am always somewhat amused and somewhat dismayed by who is willing to ‘sign’ their opinions. These posts are a case in point. Take a look at the opinions and who is willing to give contact information.
Anyway, 37sigs keep looking a business new ways.
Lazylland
on 30 Sep 08Wow .. some people are just plain jealous !! What was meant to illustrate a point is taken by some to be flaunting some outrageous bling! What about the bandwidth costs of faithfully running this FREE blog !!
I fully appreciate your candid post.
This discussion is closed.