Some people like to pay. Let them.
2009-06-03
I like to pay for things.
For years, when I was broke, I'd use cracked/bootleg copies of expensive software programs like Photoshop, Office, and Windows. Now I'm glad to pay for them, even though I hardly use them.
For years, if I'd see an opportunity (say, for something to promote my music), but saw it cost money, I'd immediately lose interest. Now I'm glad to pay for services (like SoundCloud, for example) that are doing great work, even though I don't use them much.
When musicians put me on the guest list at a venue, I pay anyway. I like to support the venue and the artist.
I pay Pandora $36 per year to have no advertising when I listen.
At Magnatune, people can pay as little as $5 to buy an album, but the average price paid is $9.82. (Many pay much much more, because they know it goes to the artist.)
Radiohead's In Rainbows album was offered for free, but 40% of people chose to pay for it anyway.
And I always pay street performers.
The key moment is when I realized that all of these people charging a little money are not greedy, usually not rich, and are just trying to make a living doing something I admire and value.
It's like donating money to your favorite politician or charity. You don't have to, but it makes you happy.
So I do my part by paying for things often.
When designing your business, service, or product, even if you're offering it for free, don't forget that there are lots of people like me that like to pay! Appeal to this side of people, giving them a feel-good reason to pay.
Tell them what their payment will go to support. Show them how appreciated it is.
Some will feel good about paying. It will actually make them happy to give you money. Let them. Always offer this.
Absolutely true. When people are shown what their money does, they gladly give more. Gives people a sense of helping others. Thanks Derek!
And sorry, I am not giving you money to read your blogs if that is what this "tweet" was for.
Peace & Light Derek!
Great Blog! "Show them how appreciated it is", has always been my motto!
Thank you for sharing and keep doing what you do, it definitely makes a difference in the universe.
~Soccorro~
Hey Derek,
Why is there no "Donation" button here? :o)
Heheh... Good point! I guess I don't consider this (sivers.org) site to be a business. -- Derek
I understand where you're coming from, and I think I'll be much the same way when I'm "grown up." But the poor college kid in my has a hard time affording the things I want to pay for.
I can't do bit torrent or other things like that, though. It doesn't sit right with me. I just try to do without.
Yup me again! Being the good soul I am and the heavy believer of the hear/like/buy principle I have been giving out free CDs of our demo CD for the last two years. Then I put them up on CD baby and some people even buy it! Despite the fact that I would still give all the music to them for free (via our website and live gigs). So cool.
It was about a year ago that Chris Anderson of Wired blew his trumpet about how paid-for services on the net were on the way out.
His article 'Free! Why $0.00 Is the Future of Business' was widely acclaimed at the time, but I never bought into it.
The signs were already about that advertising alone could never sustain this revenue model, and the economic recession has hammered this point home.
Vote with your dollars. By spending money on the things you like and believe in you keep them going. No use complaining about the economy and lack of jobs if you're still shopping at Wal-mart.
Absolutely! I just got another cheque from CDBaby, all for digital sales....I send many thanks to these folks (wish I could thank them all like I can when they buy CDs and I'm notified as to who they are) who pay for my tunes, often just for *listening* to them, when they could easily find and download 'em for free. There are lots of good people out there (and then there's Derek, one of the GREATS
.
Hey Derek,
Concerning donations for this site: you can check out www.tipjoy.com (micro-payments well suited for blogs).
I think this is a very interesting point. I am curious to know if this is an overall shift in the way people feel about free stuff on the web. Not as much entitlement and more honesty, especially for products and services they value.
40% paid for Radiohead's album? That's a huge number.
You really made me think on this one
The world thanks you.
Amen! The more that I know what goes in to making a piece of art happen, the more I want to support my fellow artists. I will often pay more than the price point on items or shows I care about because I want to support what is dear to me. I feel glad that I can be a patron in my own way, and I always appreciate when people do the same for us.
Hey, great point! I love it! I find some people have a hard time ACCEPTING money for their services. Good to let people know it's okay to say YES! :D
Thanks for your constant inspiration and wisdom.
Who needs jewels when you've got gems?
I donate to street performers, who are at least trying, to remember and honor Hook of the Venice Canaligators, who taught me much about performing, music and life.
Love it - I think this applies beyond the web too. I feel like more events (free & paid) should follow a pay-what-you-want/can model.
Thank you Derek for the validation. We all come from a generation of highly creative minds, but are challenged with what to charge others for our products or services? Strategic marketing reveals that there are all types of customers out there, it's just marketing to the one's that realize the importance of ENERGY EXCHANGE.
From my understanding prosperity is the belief in an exchange of energy. Otherwise you doom yourself to behaviors outside of your personal integrity. Which then surrounds and attracts to you people who are also outside of their integrity.
(Birds of a feather).
We often make more profit on donation house concerts than ticketed shows - people really do like to give.
AND we've financed 6 and a half albums worth of recordings via our Adopt-A-Song program. It's a way to be involved in something you support.
It works for us!
This is a really fresh approach to asking for money, and also can be applied to art. It reminds of what my hero, Richard Feynman, who was reluctant to ask for a price for his drawings, later said about art:
"I understood that to sell a drawing is not to make money, but to be sure that it's in the home of someone who really wants it; someone who would feel bad if they didn't have it."
This is exactly what I needed to read today as I begin the transition from federal employment to self employment.
ps..you could pay for a download?
Nice thoughts, Derek. It's natural and good for people to express their appreciation. Paying is a way to do that.
Paying for something shows that you value it. If my life as a retail store manager and member of an original rock band has taught me anything, it is that when you give something to someone for free, they will treat it as if it has no value. The exchange doesn't always need to include money, it just needs reciprocity.
I was just talking to a friend about this precise topic last week (see blog), but I think you say it better, Derek. I came to the same realization, roughly, that we all need each other and that money is a renewable resource. If you have a little extra, why not spread it around and reward others in the same way that you were rewarded when you earned your money? We can all help each other through hard times if we're just a little more generous than we are in the good times
Online, where free leads to "everyone" - there is much value created by those who provide meaningful filters.
Help people find what/who they want without having to wade and sort through boring, irrelevant, and even offensive content.
Can I get an amen?
Fran
I do the same in India. I don't donate to charities but I always pay for good services with something extra. I respect those hardworking people in the world who provide good services.
- Shailesh Agrawal
I've been producing a podcast for 2 years, collecting peoples stories about their lives. I get a huge amount of satisfaction from it but no income.
In the last few months I've received enough in two separate unsolicited donations to by addition microphones. The generosity from people who love my work amazes me.
So in respect of that I finally put a donation button up on the site, not so much for me to ask for them but so others if they wish can contribute.
People are wonderful and generous.
I'm basically the same way.
Hey Derek, you unveiled something important here. I always had the idea but is the first time I heard it explicitly exposed.
The myth of "people doesn't like to pay" was busted here.
Detail: do you think it only happens to a segment? I mean, it requires a significant acquisitive power to really embrace this position?