Tag: business model

« You should make a business out of it! » [en]

Or should you?

Dave Sifry makes a very important point in his LinkedIn post:

I wished there were always-updated travel guides that I could have pre-printed and bound and it would be a great memento to remember the trip as well.

So, naturally, I thought there must be a huge opportunity in creating personalized, on-demand travel guides.

The mistake wasn’t being wrong about the market. It was forgetting to ask whether the product was really something I would pay for and just a ‘nice to have’.

The world is full of needs and problems. Many of these have solutions. And people are hungry for these solutions. They find them life-saving, precious, incredible.

But would they have paid for them?

A great idea that fills a real need doesn’t always have a viable business model.

I see that everyday with the thriving support community I have built for people with diabetic cats. Many of our members cannot find enough kind words to express their gratitude for what they got out of the community. There are over 7k members in it and a team of 20+ moderators. It’s literally run like a small business.

And people tell me: heavens, you should ask for a subscription and make a business out of this!

But I know it wouldn’t work. People wouldn’t pay for the service we provide. They probably wouldn’t pay for somebody to spend an hour with them to show them how to do things and get started. They most certainly wouldn’t pay for 24/7 support. At least not in numbers or amounts that would bring the whole operation anywhere close to being able to pay a salary, let alone more than one.

It doesn’t mean they don’t value what we bring. After the fact, they might very well say they would have paid for it. But not upfront, definitely not.

Some things will always have to be non-profit, or financed by third parties so that the service can be offered freely or nearly so. Others may have a market, but can’t find a price that is worth paying for the customer and at the same time high enough to sustain the business.

It’s not because there is demand for something that one can earn money with it.

Coworking: Fixed Desks or Hot-Desking? [en]

[fr] A l'occasion de la conférence Coworking Europe, j'ai pris part à un panel discutant des avantages/inconvénients des postes fixes ou mobiles.

I was on a panel at Coworking Europe about fixed desks versus hot-desking. When I opened eclau, I had a vision for it based on how Citizen Space had been set up. Mid-2008, Citizen Space was my ur-coworking-space. I was in contact with Chris and Tara and had spent a little time at the space over the summer 2007 during my stay in San Francisco.

It quickly became apparent to me that eclau’s architecture (and possibly Lausanne’s business culture) was not working out well with my desire to have a heart of fixed-desk resident coworkers.

Eclau has very few walls that are not interrupted by pipes, radiators, or windows, making it difficult to install desk+bookcase combos that most people needing a fixed desk required.

Also, people who came to visit for a fixed desk often turned out to be either people who wanted to store a lot of stuff in the space, or who wanted a “real office” and were just trying to save on the costs.

After a year or two, eclau counted only a couple of fixed desks, and way more “hot-desking” members. Roughly two years after opening, eclau 2.0 re-focused the offer on free seating, making fixed desks an extra option available to existing members. So far, nobody has actually got around to taking the fixed desk option.

That’s for my story.

One interesting idea that emerged from the panel was that coworking space managers are trying to maximize the returns for the space they have. This is kind of an alien idea to me, as I don’t earn a living with eclau — I just want it to “not cost me anything”. The debate over fixed vs. flexible desks brought us to speak of our price plans and business models, which tend to reflect how important revenue is to the space manager. Clearly, if you’re trying to make a living out of your coworking space, or if you’re making a living doing something else, the way you approach these issues will be quite different.

At eclau, I don’t really worry that summer months are “empty”. Or Fridays. Of course it’s nicer when you’re not alone when you come to work at the coworking space. But from a financial perspective it doesn’t change anything for me, because I don’t sell desk space, or time in the space, or services. People sign up to be members, for six months or a year minimum, and the yearly membership fee is spread over 12 months. So people still pay for the space in July/August, even if they’re on holiday. They’re paying to be part of the community. Not because they occupy a seat.

This fits with my vision of coworking as “community/people first”. For me the desk renting business is the business that business centers are in.

Some argue that the type of price plan I propose is not flexible. On the contrary, I see it as very flexible. The membership fee is low, because all I’m looking to do is cover my costs. Once you’re a member, you have a key, and come whenever you want. Complete flexibility.

And the rather serious commitment required of full members is balanced with an “occasional member” offer which is virtually free (tip jar) for those who want to come less than three times a month.

I also believe in keeping things dead simple. Want to be a member? Here’s how it works. You don’t need to agonize over which price plan to choose, or wonder if you want to drop in at the coworking space today and use up some of your credit. Once you’re a member, the only thing that determines whether you come or not is your need of a place to work for the day.

Now of course, if I were trying to make a living (or at least money) out of eclau, I would be doing things very differently. Because on a given day, there are a lot of empty desks at eclau. So clearly, I’m not maximizing my revenue from the space. But that’s not my objective. (Which brings us to the other session I co-held at Coworking Europe, about the criteria of success for coworking.)

Blogger/Podcaster Typology Survey: Please Contribute! [en]

[fr] J'essaie de mieux comprendre le profil des blogueurs et podcasteurs qui couvrent des conférences, en particulier le lien entre blog/podcast et revenu et le fonctionnement des blogs collectifs. Merci de bien vouloir prendre 5-10 minutes pour répondre à mon questionnaire. Attention, ceci est un sujet de recherche perso et non une demande d'accréditation pour LeWeb! Je vous parle du Web demain au plus tard.

In the last three years I’ve been working on blogger accreditations for LeWeb (and Web2.0 Expo Berlin before that) I have had ample time to think about how we define a “blogger” (or “podcaster”) in this context.

It used to be simple: a blogger was somebody who had a blog, and a podcaster somebody who had a podcast.

But nowadays, everybody who publishes stuff online is a blogger or a podcaster.

When an event accredits members of the press to attend, it’s pretty easy to figure out who to accredit and who not to: the press is institutionalized, its members are registered and work for this or that publication (freelancers or employees).

With bloggers, it’s much more fuzzy. Where is the line between “blogger” and “press”? (I thought I’d written about that already but I can’t dig out a blog post.) What are our criteria for deciding that somebody is eligible to come and cover the conference as an official blogger?

This is new territory, and as always with new territory, I’m constantly refining my thinking about these issues. One thing I’m trying to do in the process is better understand the link between blogging and work/income — and also, how collective publications function. To do this I’ve drawn up a little survey to try to understand the profiles of bloggers and podcasters who attend conferences and blog about them.

If you recognize yourself in this description (do you have a blog/podcast? have you attended a conference and blogged about it? you’re in) please take 5-10 minutes to help me out by filling in this survey.

This is not an application form for LeWeb’10! It’s personal research. I’m publishing a post about LeWeb’10 tomorrow at the latest. Thanks for your patience.

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