Brave New Sales

TED, Free... and Your Business Model

TED's Bold Decision

I just read on my friend John Zimmer's blog that TED is celebrating a big anniversary today.

It's not an anniversary of its founding or anything like that... but rather of a decision.

Five years ago, TED decided to make its TED Talks free for public viewing.  And as John points out, TED has enjoyed over 500 million video-views since then!

That's a lot of views!

As TED's European Director, Bruno Giussani (pictured right) explained to a group of broadcasters at the Eurovision TV Summit in Luzern a month ago, TED made two huge-but-then-considered-risky decisions that increased its relevance and appeal to a much wider audience.

1. The first one, as mentioned, was allowing public access to TED Talks online, free.
2. The second one was creating the TEDx, where x = independently organized TED events, and where independent organizers could gain a license to organize such an event, free.

 

Free?

Yep.  Both of these decisions involved providing something for free.  Go to TED's website and you can see nearly 1,000 inspiring videos of superb speakers, absolutely free.

If you want to organize a TEDx event, you can secure the license free-of-charge.  I know.  I myself have organized TEDxZug and TEDxLuzern.  You do have to commit to measurable levels of quality in organizing your TEDx event and, of course, making quality video recording of your TEDx Talks available online... free.

You might think that this is a crazy business model.  Or the astute reader might note that TED is a non-profit, after all.

Right, but TED does boast an impressive top-line in revenue generation, and this might be an approach for your start-up or entrepreneurial venture.

 

A Radical Price

Former Managing Editor of Wired Magazine, Chris Anderson*, provides numerous examples of this in his book, "Free - The Future of a Radical Price."  Take Gillette's approach a century ago: "Give away the razor, then sell the blades."

So along comes TED, with a cult following of paid subscribers and its funky-but-not-really-mainstream conferences.  TED decides to provide its TED Talk videos for free, and wham!  It goes viral.

They then decide to let independent enthusiasts organize TEDx events.  Waddya'know?  These enthusiasts essentially spread the gospel of the TED brand.  Evangelists around the world, spreading the TED faith... free.

 

What Goes Up Must... Bring Revenues With It!

And what happens to the demand for TED's main conference in California each winter, as well as its European event TED Global in the UK each summer?  It skyrockets.

If you want to go to TED Global in July, apply now... for 2012.

And be ready to pay a fair penny.  From what I hear from TED-sters even more passionate than I, it's worth every penny.

Indeed, TED attendees are beyond faithful... as most evangelists are.

That's a great way to build a brand, and that's a great business model.

And Your Business Model?

Think about your business, goods and services.

Can you give away something of nominal value that leads to customers buying your real mojo at a premium price?

How can you create demand by building the "Free" concept into your business model?

*Interestingly, Chris Anderson, the author of "Free," shares the same name as Chris Anderson, the Curator of TED.

"Honor Thy Competitor" - Rafa and Roger Style

 

It Didn't Go Five Sets... 

... but yesterday's men's final at Roland Garros was beautiful.

Nadal and Federer, on clay, in early summer, in Paris.  Poetry.

We're witnessing legends.

But you know what I like most when I watch Nadal and Federer battle it out?

Knowing that, off the court, these two guys love each other.

Sure, on the court, they want to crush the other guy as viciously as possible.  But off the court, in and around their busy schedules, Rafa and Roger hang out.

They also know -- and appreciate -- that they each bring value to the other.  Yep, real, live commercial value!

Why should your business be any different?  After all, business and sports are all about performance and winning.

And get this...

 

Business Is A Deeply Human Endeavor

Spiritual teachings have been saying it for millennia: "Honor Thy Enemy."

Entrepreneurs should take heed: "Honor Thy Competitor."

This doesn't mean that you should tell your competitors your trade secrets any more than you would tell your battlefield enemy your ambush tactics... any more than Nadal would tell Federer that he was going to hang out on the baseline and fire forehand shots right and left.

This is competition, so... compete... and do so viciously!

But hating your competitors is just plain stupid.

• For one thing, and most tactically, it can cloud your judgment as to their capabilities.  Why have an inaccurate competitive analysis?  You might get beat by a backhand that everyone else admires.
• For another thing, you can learn from your competition.  (Hello?  You can learn from everybody in your marketplace and industry.)  Observe your competition with an open mind, and you can learn stuff.  You don't have to tell your clients they're better just because you know something today that they knew before you.  You're good!
• Thirdly, you never know when your competitor will try to hire you over, or when you might want to make an offer to your competitor to work for you.  Why have a crappy relationship?  This is the age of Co-opetition, open source and social networking.  Be professional.  Be competitive.  But be reasonably nice!
• And finally, your competitors may even be opening up the marketplace for you.   Imagine that!  Maybe they're too big for some sector of the marketplace.  Maybe they're too small.  Maybe they're too expensive, or too cheap.  Maybe, they're a first-mover and they're building awareness for stuff that you can provide.  As a second-mover, the road has been plowed for you.  If you've got a good relationship with a given competitor, maybe they'll even refer you if they're not right for a given client!

 

It's Easy To Create Sports Cliches In Business

It's also easy to dismiss them.

Over the years, I have had many good laughs with my competitors at bars, at events, at conferences, even in reception at prospects' offices!

And I've materially, yes, materially, benefitted from some of these relationships.  I'm not alone.

You're more likely to get a phone call from a former competitor than you are from some unknown prospect reading a trade journal listing... provided you haven't been an asshole, of course.

 

Honor Thy Competitor

They have chosen the same line of work as you.  They can't be that bad!

They might actually like you, too!

Straight-Talk Sells. Bullshit Goes Home Empty-Handed.

Say What?

When I saw this sign, my first reaction was, "What idiot wrote that garbage?"

My second reaction was, "What legal department, compliance committee and community service oversight commission had to approve this otherwise straight-forward warning?"

Ah, America.  I love you, but I laugh at you, too.  Sometimes you're so full of politically correct bullshit that you get in your own way of straight-talk.  The Land of Commercialism?  Jeez!

I'm not picking on my beloved America, per se.  I'm picking on anybody who chooses bullshit over straight-talk, particularly while selling.

 

Who Do You Think You're Kidding?

I posted this photo on my Facebook profile earlier this week, and I received these comments from friends on both sides of the Atlantic.  Are they cynics like me?  Or did they just become cynical when they read that stupid sign?

• LOL... "say what?"... for real... ;)
• The Prevent Male Loss Consortium!  We must stop losing those males.
• ... or maybe it's the loss of 'maleness' they're preventing.  Yikes!  Gotta' avoid those fitting rooms.

The sign was in a changing room at a very established department store.  If it matters, I didn't buy anything.  (Perhaps it doesn't matter to you, but it should matter to the department store!)

I really can't blame this sign for that.

Or can I?

Could the fact that everything I tried on seemed a bit "not happening" be the result of the sign reminding me that I was shopping in a stodgy, old department store chain?

Or could the the sign that reminded me I was shopping in a stodgy, old department store chain be the result of everything I tried on seeming a bit "not happening"?

Did I Lose You?

Exactly my point!

In selling start-up concepts and independent consulting services, we can't allow ourselves the luxury of selling by committee.

We can't turn crispy seven-word sentences into blusterous bullshit.

Be bold.  What do you stand for?

What is it exactly that your ideal customer wants?

How can you fulfill your prospect's need or desire?

If you want to sell... be direct.

Be daring.

Be edgy, if it's appropriate.

But don't talk a lotta' bullshit, for you will go home empty-handed.

Just go out there and talk straight!

Straight-talk sells!