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August 2006

August 08, 2006

Heart Surgeons are Liars

An interesting story from All Marketers Are Liars weblog:

It turns out that bypass surgery (which is incredibly expensive, quite risky and leads half of the patients to suffer depression and a third to have measurable memory loss) does no good at all. None.

The post gives the arguments why people still do it:

So, if it's so obvious, why do we still cut so many people open? Because of worldview. Hey, it's your heart. You better do everything you can to protect yourself. Take no chances. Cut no corners. That's the story we desperately want to hear. I predict it'll take at least 20 years before bypasses go away.

August 05, 2006

Permission Marketing

I am reading Permission Marketing by Seth Godin. I can't resist, I have to quote this:

There is one critical resource, though, that is in chronically short supply. Bill Gates has just as much as you do. And even Warren Buffet can't buy more. That scarce resource is TIME. And in light of today's information glut, that means that there's a vast shortage of ATTENTION.

This combined shortage of time and attention is unique to today's information age. Consumers are now willing to pay handsomely to save time, while marketers are eager to pay bundles to get attention.

Interruption Marketing is the enemy of anyone trying to save time. By constantly interrupting what we are doing at any given moment, the marketer who interrupts us not only tends to fail at selling his product, but wastes our most coveted commodity, time. In the long run, therefore, Interruption Marketing is doomed as a mass marketing tool. The cost to the consumer is just too high.

The alternative is Permission Marketing, which offers the consumer an opportunity to volunteer to be marketed to. By only talking to volunteers, Permission Marketing guarantees that consumers pay more attention to the marketing message. It allows marketers to calmly and succinctly tell their story, without fear of being interrupted by competitors or Interruption Marketers. It serves both consumers and marketers in a symbiotic exchange.

Four free chapters of the book are available here: http://www.sethgodin.com/permission/

August 04, 2006

The Price Is Wrong

Here is an interesting post about the pricing of shareware: The Price Is Wrong.

Daniel Jalkut introduces us the Cult of Too Expensive and its opposite.

I especially enjoyed the section on movements from and to "Free":

Kevin Callahan’s Accessorizer has been a life-saver for many Cocoa developers over the past several years. Roughly in conjunction with its 2.0 release, its price jumped from Free to $20. Now this is a perfect example of something that people love to get upset about, even if it makes no sense at all. “Because you let me use your software for free for several years, you have no right charging for it now!” This seems to be a common sentiment. Ironically, if Kevin’s app had been $30 from the start, a reduction to $20 would have been met with cheers.