Floored

I’m floored over this article for two reasons. First, Jason of 37 Signals tweeted it. This shows some element of critical thinking and acceptance of the limitations of his advice. Second, the article itself (which is the more important point) posits a fantastic distinction that we need to pay attention to. I will be paying attention to it, at least.

What people will pay for a class of good is a big deal. Forgetting which class you’re put in is a giant mistake. The barrier for entry into social spaces is nothing. It costs nothing for friends to get together and hang out at someone’s place. You can’t be more expensive than that. When it comes to work, however, people are more than willing to pay for something that will make them money. Saving money is the same as making money.

Never forget this rudimentary lesson of pricing. It makes me think about what kind of product I would be inclined to put out there. One where people will pay me directly, or one where I will be indirectly paid. The formula for any indirect payment seems much more vague and hand-wavy. The formula for direct payment is very straight forward. It is a harsher reality, because if you’re not good enough, you’re not getting paid. I like that. If you have a social media service, you might have lots of registered users. You might have some traffic. You might get paid. You might not. But you’ll never know if you’re actually succeeding at your task. Meaningful metrics are much harder to obtain for you.