Wednesday, September 16, 2009

Principles of Abundance Thinking

In the book Free, Chris Anderson gives his 10 Principles of Abundance Thinking. I think associations should look at two of them very closely.

You can make money from Free.
People will pay to save time. People will pay to lower risk. People will pay for things they love. People will pay for status. People will pay if you make them (once they're hooked). There are countless ways to make money around Free. Free opens doors, reaching new consumers. It doesn't mean you can't charge some of them.

Sooner or later you will compete with Free.

Whether through cross-subsidies or software, somebody in your business is going to find a way to give away what you charge for. It may not be exactly the same thing, but the price discount of 100 percent may matter more. Your choice: Match that price and sell something else, or ensure that the differences in quality overcome the differences in price.

These two tenants are worth a board retreat weekend on their own. Is your association thinking about them? If not, they probably should be.

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