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Industry insights

Industry insights

TOC: Chris Anderson/Free: The economics of giving stuff away

Chris Anderson, editor-in-chief, Wired Magazine

The cost of things tend to fall to zero over time.

You can build business around giving things away:

  • Free samples
  • Skype, YouTube, free unlimited storage on Yahoo
  • Ad-supported media..product is free, make it back on ads
  • Free ice cream samples
  • Give away razor, sell blades
  • Gift economy/wikipedia, craigslist: people donate expertise/time for nonmonetary — attention, reputation, expression…never before “dignified” as an economy. There is an economy, just money is not the currency.

If marginal cost of reaching the N+1 customer is approaching zero, then treat the product as free and figure out how to sell something else.

The price of a magazine like Wired is arbirary; it bears no relationship to the actual cost of the magazine. The subscription price is intended to qualify your interest. Setting the price too low “devalues the product.”

Most music is free. “Free as in speech” — DRM is going away. “Free as in beer” — bands are experimenting with giving away music to market the live performances.

Games and movies would be free if not protected. They are locked down to enforce prices. Artificial barriers tend to fall over time. Already seeing ad-supported videogames. (neopets)

The shining exception: Books! They are not asymptotically approaching free. Books make sense. They provide the optimal way to read. The physical product is better than digital product…excellent battery life, screen resolution, portable, and it even looks good on your shelf. Easy to flip through.

If “free” is “the business model of the 21st century,” how could a book be free?

(This was preceded with a disclaimer that many of these options would be “offensive” to people in the audience.)

For his next book, Anderson wants to do the following:

  • Audiobook will be free with book (mp3) (free coupon in real book)
  • Will participate in book search, include Google
  • Considering an e-book locked to a specific reader for free
  • Unlocked e-book with advertising inserted
  • Book online with ads in the margins
  • As many sample chapters as publisher will accept

How could a physical book be free?

  • Sponsored book
  • Consultants give away books
  • Book with ads
  • Free rebate
  • Free to influentials/reviewers
  • Libraries have always had free books

Why do it?

  • Free book is marketing for the non-free thing
  • Book is marketing vehicle for celebrity
  • Can’t give away time
  • If free version is inferior, you give it away to market the better product
  • Use “free” to maximize reach to new influentials

Why aren’t more people doing free content?

  • Most people are not represented by a speaker’s bureau and can’t monetize fame
  • Online sample is not a compelling example of book (maybe for cookbook, probably not for novel)
  • No natural advertiser
  • Publisher opposition — publishers not in business of selling celebrity
  • Annoys the retailers
  • Fear and timidity/fear of cannibalization

The most critical point: The interests of the author and the publisher are critically misaligned. Publishers doesn’t benefit from speaking fees of consulting fees, only from book sales.

Sounds like an argument for self-publishing to me.

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Industry insights

Tools of Change for Publishing/Norwegian Monks!

As part of a brief history of publishing in the opening keynote, I’ve already seen a few friends:

  • The Norwegian Monks video — Technical support for books
  • A reference to Vannevar Bush’s “As We Might Think” article from 1945

According to Tim O’Reilly, Microsoft Encarta “fatally wounded” the Encyclopedia Britannia because of “asymmetric competition.”

A series of short, related keynotes to kick off the conference. I like this approach; in a nontechnical, high-level keynote, it can be difficult to fill a 60- or 90-minute slot.

Brian Murray, HarperCollins, Retooling HarperCollins for the Future
Consumer publishing *was* straightforward. All promotion wasdesigned to drive traffic to a retailer.

In 2005, “the earth moved.” There were search wars, community sites, user-generated content, Web 2.0. Newspapers and magazines responded with premium, branded sites online based on advertising or subscription models.

Book publishers are confused. Search engines treat digitized book content like “free” content. Rights and permissions are unclear. Books are not online — except illegally! Book archives are not digitized.

Before 2004, “book search” took place in a book store.

What is the role of the publisher in a digital world?
What is the right digital strategy?
What are the right capabilities?
“Search” provides new opportunities for publishers.
Publishers must transition from paper to digital.
How can publishers create value and not destroy it?

Some statistics:

  • 65M in the U.S. read more than 6 books a year.
  • 10M read more than 50 books a year. [ed.: waves]
  • Younger consumers read less; they spend more time online

Search is used more often than email.

HarperCollins decided to focus on connecting with customers, rather than e-commerce. Amazon and others already do e-commerce. They focused on the idea of a “digital warehouse” that is analogous to the existing physical warehouse. They want to:

  • promote and market to the digital consumer.
  • use digitized books to create a new publishing/distribution chain
  • protect author’s copyright
  • “replicate in digital world what we do in physical world”
  • got publicity, strong public response
  • no single vendor who could deliver turnkey

Improvements from digital production and workflow could fund some or all of the digital warehouse investment. Projects that were low priority “IT and production” projects become high priority. Savings were realized in typesetting/design costs, digital workflow, and digital asset management.

The digital warehouse now has 12,000 titles. (Looks as though they were scanned, which doesn’t meet *my* definition of “digital content.”)

At this point in the presentation, we began to hear a lot about “control.” Control of content, controlling distribution, and so on.

HarperCollins does not want others to replicate their 9-billion page archive in multiple locations. They want others to link into their digital warehouse. But if storage is cheap and getting cheaper, what’s in it for, say, Google?

Strategic issues for book publishers

  • Should publishers digitize, organize, and own the exclusive digital copy of their book content?
  • Should publisher control the consumer experience on the web?
  • If the cost of 1 and 2 is zero, should every publisher do them both? would they?
  • How to make money

The focus on controlling content was interesting and perhaps not unexpected. The business case based on savings in digital production was also interesting.

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Industry insights

It’s not easy being green

Over the years, we’ve been quite smug about Scriptorium’s eco-friendly credentials. We don’t have any nasty, dirty factories, we mostly provide services, and all in all, we’re pretty clean.

On the surface.

It turns out, of course, that there are two major holes in our green company argument:

  • energy
  • air travel

On the energy front, we use power to heat and cool our office and to run our (many) computers. When we travel to visit customers, we usually fly, and airplanes emit huge amounts of pollutants.

In honor of our 10th anniversary, and for Earth Day 2007, we are announcing several new initiates to help reduce our environmental footprint:

  • Recycling: We already recycle most of what we use in the office: paper, computers, aluminum, and plastic. We are also going to make a significant effort to use more recycled paper when we print, both in the office and with our print vendors.
  • Air travel: Through carbonfund.org, we are purchasing carbon offsets to “zero out” the carbon emissions from our collective air travel. We are also offering our customers the option of live, instructor-led web-based classes, which eliminates travel requirements for client and customer alike.
  • Energy: We have joined the North Carolina GreenPower program, which allows us to purchase energy from renewable sources.

You can find a list of carbon offsetting programs in several countries here. There’s an excellent overview of the concept at grist.org and carbonoffsets.org.

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Industry insights

Friends in new places

We’re pleased to announce that we have joined XMetaL’s Partner Program as a Certified Service Provider.

We will not be reselling XMetaL software, but we will begin offering XMetaL classes this summer.

This is really a customer-driven decision — we have clients asking us to develop XML and DITA implementations with XMetaL as the core authoring tool.

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Industry insights

WritersUA: My sessions

I delivered a session on Coping with the XML Paradigm Shift, in which I introduced my Taxonomy of Problem Writers for the first time. The slides are available in PDF format, and I welcome any and all comments. You probably won’t be surprised that the presentation is slightly over the top. It has, however, already served as a great conversation starter —
I heard people talking about Technosaurs and One-Trick Ponies.

On Tuesday afternoon, I did a double-length, hands-on Introduction to DITA session. (Many thanks to XMetaL for providing attendees with evaluation copies to use during the session.)

I arrived in the room about half an hour before the session and found a few people already moved in. (Always a good sign.) Trying to install and configure software just minutes before a session like this is a truly terrifying undertaking. And as we got closer to the session time, more
and more (and MORE) people kept coming. By my count, we had at least 35 people with laptops and five more without. (That’s about triple the number I’d normally allow in a hands-on training session.)

There were a few kinks, but we managed to get everyone up and running*, and I think the session was valuable. At the end, I polled the room on whether they were more or less likely to implement DITA and got an even split. Perfect!

We will be extending this three-hour session into a two-day Introduction to DITA class, which we expect to begin offering in mid-summer. Watch this space for more details.

* One person had a Mac, which I hadn’t anticipated. Sorry! The two people running Vista also had some issues. There were a few installation errors, but their software seemed to run OK.

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Industry insights

WritersUA: Pundit panel

The opening session with the ever-popular pundit panel was interesting. Bernard Ashwanden of Bright Path stole the show with a strip routine. Perhaps I should explain.

Bernard pointed out that life was about content, and the tools were just layers on top of the content. To illustrate the point, he took off his vendor shirt, revealing another vendor’s shirt. Then, he took off the second shirt to reveal yet another vendor’s shirt. After five shirts, he ended up with a MadCap T-shirt. I’m going to assume that this was related to shirt size and not some sort of message about who is closest to his heart. I should stress that Bernard did keep his last shirt on.

Although predictions were created independently by the various pundits, they were in substantive agreement in many cases. Everyone felt that the cliched web 2.0 will have a significant effect on technical writers. In a world where end users contribute to product information on wikis, user forums, podcasts, or videos, what is the role of the “corporate” technical writer?

Several people predicted a demise for traditional help authoring tools. They said that tools must evolve to support new media and community publishing models. I agree in part, but I don’t think this will happen in the next three years, as at least one panelist predicted.

As consultants, it’s our job to understand new technology and to be ready to implement it for our customers. But our customers are at different points on the technology adoption curve. We have:

  • Early adopters, who want the latest and greatest technology.
  • Cautious middle adopters, who want to implement proven technology.
  • Late adopters, who are the last ones to move into a new workflow.

As a result, at any given point, our active customers are:

  • Implementing the latest thing
  • Implementing the low-risk thing (which was likely the Next Big Thing five years ago)
  • Implementing the industry standard (which is robust, but not very cutting edge)

The web 2.0 technologies are still on the extreme bleeding edge. A few companies are implementing them (the Quadralay wiki comes to mind), but corporate adoption is going to take years. Furthermore, user-generated content presents enormous logistical, legal, and corporate positioning challenges, which will slow adoption for risk-averse companies (which is most of them).

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Industry insights

WritersUA: Overview

Attendance seemed to be up a little from last year with approximately 450 people at the show.

Great energy as usual, people were excited to be at the venue.

I got a chance to catch up with many of the Usual Suspects including Char James-Tanny, Alan Houser, Neil Perlin, Paul O’Rear, Dave Gash, Brian Walker, Tony Self, and many others. (If I left you out, it’s because my brain has turned to mush.)

Our booth was extremely busy, and we had great conversations with many attendees. In past years, we would tell people what we do (“XML blah blah structured authoring blah blah FrameMaker blah blah training consulting blah blah”), and some percentage would respond with, “Oh, I use [some help authoring tool] and I don’t need that stuff.” This year, there were two types of responses:

  • “We’re working on an XML implementation.”
  • “We’re thinking about XML.”

The percentage of attendees who do not need to care about XML was extremely low.

Our “Yellow Thingies” were very popular — in addition to chocolate (of course), we were giving away a printed, bound version of three of our white papers (with a yellow cover). You can get the white papers through our online store (free with registration), but attendees really seemed to appreciate the printed version.

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Industry insights

WritersUA: Rumors

From Char James-Tanny’s helpstuff blog:

Speaking of new features…RoboHelp will support both Windows Vista and Office 2007 in their next release, due out before the end of the year. I also heard today that Frame 8 will go to beta sometime in the next several months, and that a new product (kinda-sorta similar to RoboHelp for Frame) is under development. No news yet on the feature set, but that’s OK…I can wait until it’s released. (Given that I don’t use Frame, I obviously won’t be a beta tester!)

As you probably know, Scriptorium has a long-standing relationship with Adobe. We are an Adobe Authorized Training Center and have also done work for Adobe as a vendor (writing white papers and the like). As a result, we often have pre-release access to software under non-disclosure agreements.

This can make life quite difficult when people ask us about Adobe’s future plans. We aren’t allowed to say anything! You’ll notice, however, that it is possible to get information. My advice? If you want to know about upcoming features, corner the right Adobe person (don’t bug the RoboHelp guy about FrameMaker and vice versa), in private, and ask nicely.

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Industry insights

“Perception is reality”

Once upon a time, a long time ago, a wise manager told me this in response to some whining from me. Things were happening, life was unfair, and I couldn’t understand why my wonderful contributions weren’t being appreciated.

“Perception is reality.”

The perception was wrong, and reality was irrelevant. Never mind whether I was doing a fantastic job — upper management didn’t see it that way, and their evaluations are based on their perception.

It seems that RoboHelp has a similar problem. Ellis Pratt writes on the Cherryleaf Technical Authors’ Blog: “The challenge for Adobe, I believe, is to develop a better product and to try and rebuild relationships that haven’t been nurtured properly for the past four or five years. Maybe it’s time they read ‘The Tipping Point’.”

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Oh, this is not a good idea

[Update: According to Aseem, comments are back on and turning them off was unintentional.]

In an earlier post, I linked to a blog posting from the Adobe Product Manager for FrameMaker, who requested product suggestions via meetings and email. But, unsurprisingly, the requests went into the comments. And most of the commenters are asking for a Mac version. And now we have this (from a comment on my post):

It appears the ability to comment on that post has been turned off. If I had been allowed to comment, here is what I would have written.
[another request for Mac support with a detailed recommendation on how to do it]

I suppose that it’s possible that Adobe’s blog system limits each entry to 16 comments?

<crickets>

Probably not.

I don’t think that a flood of “gimme back my Mac” was what Aseem was looking for. (Hi, Aseem!)

Blogs are a two-way conversation. Sometimes, the person you’re talking with changes the subject. And hitting the mute button is really not the best way to deal with that.

[I will now await a flood of comments that will make me eat my words.]

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Industry insights

Pod people and RoboHelp

The RoboHelp reviews keep coming, and they’re getting ugly. DMN Communications says in their podcast that the new release of RoboHelp shows “almost contempt” for RoboHelp users (approximately 12:30 into the podcast).

On a more constructive note, the podcasters speculate about the lack of integration of RoboHelp with FrameMaker. They point out that RoboHelp’s competitor, Flare, imports native FrameMaker files, whereas RoboHelp requires use of the intermediate MIF (Maker Interchange Format) files. One of the speakers then muses, “Does Adobe’s agreement with Quadralay [to include WebWorks Publisher Standard Edition in the box with FrameMaker] preclude them from integrating RoboHelp?” (11:40)

I don’t know the answer to this question. Random guesses are so much more fun than the generally mundane truth (whatever that might be).

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Industry insights

Notorious

There’s no such thing as bad publicity, or so the saying goes.

But RoboHelp is trying.

MonkeyPi weighs in with his, er, unique style. In a lengthy discussion of a recent Adobe webinar on RoboHelp, he says this:

But the kicker comes when [Adobe product evangelist] Jacquez says, “…the closest [online help tool] to RH is Microsoft’s HTML Help Workshop.” The clear implication is that RoboHelp is teh awesome, and teh other toolz are teh suxors. Why even Micro$oft’s crappy free tool places higher then our pathetic competitors!!

Adobe says that their competitors’ claims were misleading:

Jacquez says, “…competitors telling people that [RH] is dead… one has to wonder what the competition is going to say when their customers begin to return their product because they bought it under the pretense that RH was dead.”

Let’s get something very clear here. After Macromedia bought eHelp, they killed RoboHelp. RoboHelp was dead — Macromedia was interested in RoboDemo (now Captivate) and not in any other component of eHelp’s product line. So, they laid off most of the RoboHelp team.

Enter MadCap. Many of the ex-RoboHelp people thought that there was still a market for a help authoring tool, so they formed the new MadCap Software and built Flare. And much of Flare’s marketing was based on the idea that 1) RoboHelp is not going to have any updates and 2) Flare is the natural successor to RoboHelp.

Fine. But then Adobe bought Macromedia. And Adobe does have a significant presence in the technical writing market, so suddenly the strategy changes. Adobe decides to resurrect RoboHelp.

All of this makes perfect sense. And there’s nothing particularly nefarious about what happened. RoboHelp didn’t make sense in Macromedia’s web-heavy product line-up. RoboHelp can make sense for Adobe, especially if they market RoboHelp, Captivate, Acrobat, and FrameMaker as a core set of technical writing tools, along with Photoshop, Illustrator, DreamWeaver, Flash, Acrobat 3D, and others for more specialized requirements. You can see some of this positioning beginning to happening in the Adobe webinar.

Meanwhile, though, response to RoboHelp 6 has been, at best, mixed. One day after MonkeyPi’s dissection of the webinar, we have 10 Reasons Not to Upgrade to RoboHelp 6 at I’d Rather Be Writing. They include the following (read Tom’s blog for an explanation of each item):

1. Communication from Adobe is bleak.
4. Not compatible with Word 2007.
5. Requires at least 15 macros to clean up [print] output
9. Interface is 1996.
10. Its apparent ease of use is only because you’ve been using it for 10 years.

The writer seems particular offended by Adobe’s lack of response to questions and comments during the webinar and on their new TechComm blog:

[…] Adobe’s RoboHelp blogger either is totally clueless about responding to comments, or he doesn’t understand that a blog is not a PR marketing vehicle. […] Sorry Adobe, but you really get a D when it comes to communication.

This is interesting. Five years ago this would have been a non-issue — obviously Adobe gets to control the content of marketing communications on their web site. No more.

As I use RoboHelp about once every five years, I don’t really have an opinion on the merits of the tool. But I am watching the blog-kerfluffle with some interest, especially as I wonder what reaction to FrameMaker will look like, when they release their next version, probably in mid-2007 (according to public statements from RJ Jacquez).

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Industry insights

VC pitch template

This week, I attended the Southeast Venture conference, held at the new Umstead Hotel in Cary, North Carolina. The conference was only about two miles from our office and the opportunity to see this brand-new, five-star aspiring hotel was too good to pass up. (Hard to justify staying there when home is less than 20 minutes away…)

The conference included a series of 10-minute pitches from various companies looking for funding.

After seeing a couple dozen of these sessions, I have put together a helpful template for anyone looking to do a demo pitch.

First, be sure to use the following phrases:

  • “addressable market is over $X billion”
  • “unique value proposition”
  • “sustainable advantage”
  • “barriers to entry”
  • “strong intellectual property assets”

Then, you’ll need two charts. The first one shows revenue and looks like this:
Revenue from 0 today to $50 million at some future date
The second one shows profits and looks like this:
Profits currently zero, drop to negative, then increase to $50 million at some future date
So. Hockey stick and check mark. It’s all very simple.

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An example of good technical writing

Not too long ago, I took a quick look at XMLMind XML Editor (XXE). I downloaded and installed the software, dropped in a couple of existing XML files, and tried to create some new content.

I didn’t like it. Couldn’t get it to do what I wanted.

This week, I ran across Antonio DaSilva’s article about XXE (hi, Tony!). I read the article, then opened up my copy of XXE (still installed). And suddenly, the product worked just fine.

XXE isn’t my favorite XML editor, for the price, it’s a great tool. (The standard edition that I’m using is free.)

There were a couple of bits of information in the article that really helped me. I think the key insight that Tony provided for me was that XXE does not permit your content to be invalid. Thus, if you try to paste an element into an invalid location, the paste action is blocked. I don’t like it, but at least now I understand why the software is behaving the way it does.

Many thanks to Tony for a great article.

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Industry insights

If it’s not Scottish, it’s…

[refresh your memory here]

The Aberdeen Group has released a new report, entitled The Next-Generation Product Documentation Report: Getting Past the ‘Throw-It-over-the-Wall’ Approach. (Could that title be any less, um, Scottish?) Access is free until February 23 when you provide your email address.
The Content Wrangler
is not impressed:

The folks at Aberdeen do not truly understand the market, despite many interviews with thought leaders in the documentation arena. […] The survey appeared to be designed to obtain results for each of the sponsors […], instead of questions designed to paint an accurate picture of the documentation industry without regard for the concerns of sponsors.

I lost interest because I think their basic hypothesis is wrong:

Causing a missed product launch because of incomplete product documentation is
the nightmare of every documentation manager.

The vast majority of documentation groups that I’ve worked for/in/with don’t worry about “causing a missed product launch.” If the documentation isn’t ready, the product will still ship. The documentation may be incomplete, inaccurate, unreviewed, or otherwise problematic, but the product will ship.

I know that there are some industries (medical devices come to mind) where documentation is in fact regulated just as the product itself is. But the vast majority of technical writers that I’ve worked with are concerned with triage — how much of the doc can be completed by the (generally ridiculous) deadline?

Am I missing something? Is there a world of documentation managers out there who stress about actual product delays because of documentation?

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Industry insights

My First Blog Ethics Challenge

So today, this is all over the various tech comm lists:

If you’ve got a blog that appeals to technical communication professionals, we’d got a special offer for you. Blog about [deleted] and we’ll send you a free [shameless sponsor] T-shirt courtesy of [shameless sponsor].

[boring details snipped]

Supplies are limited. T-shirts XL only.

XL only?!? In that case, forget it.

Now, if they were offering chocolate

On a completely unrelated note, I’d like to mention that I’ll be presenting at the STC Trans-Alpine Chapter conference on April 18-20. In Switzerland, which as you probably know is famous for watches, banks, and <cough> chocolate.

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Anonymous blogging has its benefits

monkeyPi posts a review of RoboHelp 6.

Warning: May be hazardous to keyboards.

RoboHelp 6 finally arrives, and it’s craptastic at monkeyPi

I haven’t looked at RoboHelp in years, so I have no idea whether his issues are valid or not.

[I have this feeling that I know the monkey behind monkeyPi, but I’m not totally sure. Meanwhile, I will continue my demure, unanonymous blogging here.]

I did notice a couple of things about the RoboHelp release. First, based on the feature set, Adobe has clearly decided that XML is not a priority for RoboHelp users. This is in contrast to MadCap Flare, which touts their tool as being “XML-based” at every opportunity. Second, the press release announcing RoboHelp 6 has a quote from the former eHelp VP of Engineering, who is now with an unrelated company (Unwired Software). A lot of MadCap’s marketing effort is built around their identity:

“MadCap Software is just a new name for a group of familiar faces that have been leading the technical writing community for over a decade. MadCap is home to some of the most experienced software architects and product experts in the industry, including many former core members of eHelp Corporation, creators of RoboHelp.”

One gets the impression that Adobe has been paying attention to Flare’s marketing, and that Adobe marketing is just a tad ticked off.

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Industry insights

Ten for ten: training discounts until January 31

In 2007, we’re celebrating our tenth anniversary at Scriptorium. As part of this milestone, we’re going to offer discounts and giveaways throughout the year.

Our first special is 10 percent off any public training class on FrameMaker, XML, XSL, InDesign, or Photoshop. To get the discount, use the following coupon code during the checkout process in our online store:

10for10training

The code is valid through January 31, so register soon! For class dates, go to our online calendar.

Fine print on the discount: You can use the discount code only one time, so if you want to take multiple classes, register for all of them in one order.

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