Want to know what Google is up to? Here you go

I’ve seen lots of hand-wringing and sweaty prognosticating about Google. What will it do? What does it want? Is that don’t be evil mantra for real? Funny thing is, Google’s strategy has always been in plain sight. There’s no obfuscation….

GoogleI’ve seen lots of hand-wringing and sweaty prognosticating about Google. What will it do? What does it want? Is that don’t be evil mantra for real?

Funny thing is, Google’s strategy has always been in plain sight. There’s no obfuscation. There’s no misdirection. Heck, this New York Times piece spells it out:

Google has used a similar approach — immense computing power, heaps of data and statistics — to tackle other complex problems. In 2007, for example, it began offering 800-GOOG-411, a free directory assistance service that interprets spoken requests. It allowed Google to collect the voices of millions of people so it could get better at recognizing spoken English. A year later, Google released a search-by-voice system that was as good as those that took other companies years to build.

See what Google did there? It released a free service so it could gather huge amounts of data that could then be used in another product. That’s what Google does. Free leads to data, data leads to another product. Repeat over and over and over and over again.

“User” and “Customer” are Different Animals In the Freemium World

The New York Times’ recent piece on Evernote inadvertently cracked open an important question in the “freemium” discussion: What’s the difference between a user and a customer? The language attached to freemium business models requires specificity because these businesses associate…

The New York Times’ recent piece on Evernote inadvertently cracked open an important question in the “freemium” discussion: What’s the difference between a user and a customer?

The language attached to freemium business models requires specificity because these businesses associate expectations with distinct user groups. With freemium, there’s a vast canyon between free access (users) and pay access (customers); they are not synonymous. That’s why the following clarifications are necessary:

User — A visitor who accesses a site, product or platform, but does not pay. Example: I use Dropbox, but I don’t pay for the top-tier services (yet …)

Customer — A converted user who now pays for premium access or services. Example: As my storage needs increase and I become more reliant on Dropbox, I’ll likely convert into a paying customer.

I realize this entire post teeters on nitpicky semantics, but heated debates require clear boundaries.

Sidenote: I highly recommend the Times’ Evernote story. It’s a great representation of the opportunities and obstacles that come with freemium models, and it has actual numbers.

The Wall Street Journal is Not a Newspaper

Rupert Murdoch continues to bang the drum for pay walls: “Quality journalism is not cheap,” Mr Murdoch said, noting that the success of The Wall Street Journal’s online subscription offering has convinced him that consumers will pay for news online…

Rupert Murdoch continues to bang the drum for pay walls:

“Quality journalism is not cheap,” Mr Murdoch said, noting that the success of The Wall Street Journal’s online subscription offering has convinced him that consumers will pay for news online that differentiates itself from the mass of information available free on the web. “A newspaper that gives away its content is simply cannibalising its ability to produce good reporting.”

There’s a fine distinction within this excerpt: The Wall Street Journal is not a newspaper. It’s a provider of targeted information that its audience uses to guide financial decisions. The value proposition is driven by the actions and outcomes the information facilitates. General news rarely offers this type of value, which means the commonalities between the WSJ and newspapers are limited to bits, print, ink and distribution.

That’s not to say the WSJ doesn’t provide a lesson for general news publishers. The key is to provide tangible, actionable value for the audience via content. That’s what WSJ subscribers are buying (or configuring …)

Piracy Is About Choice, Not Free

Spotify co-founder Daniel Ek just landed a future customer (me) with this comment in the New York Times: “Piracy is essentially the consumer’s wish to have everything on demand. It’s not like people want to necessarily have it for free,”…

Spotify co-founder Daniel Ek just landed a future customer (me) with this comment in the New York Times:

“Piracy is essentially the consumer’s wish to have everything on demand. It’s not like people want to necessarily have it for free,” Mr. Ek said. The problem is that there have not been commercial services “that allowed people to discover new music and easily share music with friends,” he said.

Well put.