Mmmm…Free Beer. Yay, Beer!

Free BeerOkay, here’s where customer co-creation gets interesting. (John Winsor, are you out there?) A group of students at the IT University in Copenhagen, and Superflex, a Copenhagen-based artist collective have brought free beer to the world. In their words:

“The project…applies modern free software / open source methods to a traditional real-world product – namely the alcoholic beverage loved and enjoyed globally, and commonly known as beer.

The recipe and branding elements of FREE BEER is published under a Creative Commons (Attribution-ShareAlike 2.5) license, which means that anyone can use the recipe to brew their own FREE BEER or create a derivative of the recipe. Anyone is free to earn money from FREE BEER, but they must publish the recipe under the same license and credit our work. All design and branding elements are available to beer brewers, and can be modified to suit, provided changes are published under the same license (”Attribution & Share Alike”) . The aim was to start an experiment in applying modern open source ideas and methods on a traditional real-world product (beer). At the end of the course, Superflex decided to continue the experiment and changed the name to FREE BEER.”

I look at this experiment and think, “why not?” Customers are involved in giving feedback to the product. The product continually improves and evolves to meet new market trends and ideas. (E.g. FREE BEER 3.0 contains Guarana “for a natural energy boost.”) There’s an inherent, DIY, Make-ishness about the process. And producers are free to make a profit on the product, which will be driven solely by how well they connect with and serve customers (since the product itself is not a differentiator)…and are even encouraged to improve on the product, as long as they feed back into the virtuous cycle.

I love it.

(via Lessig)

How Do You Grow?

Been thinking about this one a lot recently. We all change and (hopefully!) evolve over time. As I’ve observed myself, friends and acquaintances go through this process, there seem to be two types of people.

The first are individuals who change in a directed fashion. That is, as they age, they change along a vector that goes in a single direction, and once in the new “place,” have a difficult, if not impossible, time going back to earlier “versions” of themselves.

The second are individuals who change in a subsumptive fashion. That is, as they age, they change by adding new “layers” to themselves, while still retaining (and retaining access) to the earlier layers that got them to where they are today.

Both types of individuals change over time, but their outlooks on life seem very different to me.

Bonus thought: This may apply to organizations as well…can your organization access its inner startup when it needs to? Or has it changed so much that it’s impossible to get back to the roots that made it great in the first place?

(See HP)

Up And Atoms

SSPX0035 SSPX0034

Time for a brief diversion into the tangible world. When one spends most of one’s time being virtual, taking a few moments out every now and then to do something with wood and metal and paint…you know, stuff…is needed to recenter one’s perspective.

On that note, today was the maiden voyage of our current real-world-stuff construction project, a tiny little “teardrop” camper-trailer. After working on it in the off hours for the last couple of weekends and in the evenings, it’s getting close to completion. But, even in its current shape, the Department of Motor Vehicles has deemed it road-worthy, so here it is!

A few more things to do (add a couple of round “porthole” windows, get the back deck locks in place, one more coat of red paint on the curve, etc.), but we’re getting pretty close.

We now return to our regularly scheduled programming in the world of ones and zeros.

Flock U

Nellie Lide, on communities, social networks and marketing: “I think brands will have to go beyond a conversation – though that’s a good start – they have to be willing to develop and maintain a relationship/friendship with their customers over the long-term. And I think companies are looking at these sites all wrong. Advertisers, marketers, product-makers are trying to figure out how to exploit and use all the people on these sites – when they should be studying what these folks are doing and try to figure out how they can help these social sites be better for their users. Not more cluttered with their ads. If your product and brand don’t really fit in – stay out. Know your customer and respect your customer – that’s it.”

Silent Bob Speaks

Jsbstash_1909_431813As anyone who’s ever read my bio knows, the movies of Kevin Smith factor strongly into my pop culture experience. Clerks, Chasing Amy, Dogma (yes, even Mallrats) sit proudly in my “top 10” movie list. I find them funny, thoughtful, insightful, and refreshingly willing to challenge the more taboo societal conventions. And Smith is a brilliant writer.

Smith’s most recent movie, Clerks 2, opened on July 21, 2006, in theatres in the U.S. He videoblogged the entire making of the film (“come watch the train wreck!”), and even rolled the names of 10,000 MySpace “friends” of the film during its theatrical credits.

He so totally gets it.

Smith also knows that he appeals to a limited demographic. So, he built the business plan for the film around that understanding. Smith (on July 23rd, near the end of the film’s opening weekend):

“Reuters writes “Kevin Smith’s ‘Clerks II’ was No. 6 with $9.6 million, broadly in line with expectations.”
I’m not gonna try to spin it for you: we’d have liked to have opened better, naturally.

And yet, I’m happy.

Let’s get the business stuff out of the way first…

Once again, in what’s been termed by some box office analysts as the “Star Trek”-Effect, we saw good Friday numbers dip on Saturday. Essentially, the hardest of hardcore fans show up in full-force on opening day, inflating the returns slightly, leaving Saturday to drop rather than enjoy the standard jump most flicks enjoy on the same day. So while it would’ve been nice to have done our best opening weekend ever with “Clerks II” (that 11 million “Strike Back” bar didn’t seem all that high to reach on Friday night), alas, it’s number six for us.

I can’t find anything to complain about; I mean, we nearly doubled our budget in the opening weekend. And while there were marketing costs (prints and advertising) beyond the negative cost ($5mil production budget) , they were pretty modest (indeed, we spent far less opening “Clerks II” than we did to open “Strike Back”). The flick should manage to get to $20 – $25mil theatrically, and eke out a minor theatrical profit, leaving all the DVD loot as total windfall.

In essence, we took the “Strike Back” paradigm, plugged in different, lower numbers, and are seeing pretty much the same results. But since “Strike Back” was a pretty profitable endeavor when all was said and done, “Clerks II” will be even moreso (a twenty million dollar budget vs. the five million dollar budget). Financially, it’ll be a winner for all involved.”

He also nailed the marketing of the film. Smith again:

“We knew we were going after a niche audience and spent accordingly.

That’s why we only spent five million bucks making the flick in the first place.

That’s why we spent 45 weeks throwing up making-of video blogs over at www.clerks2.com.

That’s why I did a fifteen city tour promoting the flick to every local news outlet I could hit.

That’s why Jeff Anderson and Brian O’Halloran did the same, in fifteen other cities.

That’s why Rosario Dawson and I did couch duty, separately, on Leno, Conan, Kimmel, Ferguson, and Regis (yes, Regis).

We maximized what little we had to promote the flick with good ol’ fashioned grass roots marketing: because our marketing budget was well below average.”

Back on July 23, per the quote above, Smith estimated that “the flick should manage to get to $20 – $25mil theatrically.” As of yesterday, Clerks II had grossed 22.3 million in box office revenues. Again, he nailed it.

The moral I see?

  • Know what game you’re playing, cold. Don’t self-delude.
  • Know your audience and customers. Build a business that serves them.
  • And don’t ever, ever pretend to be something you’re not.

A Trend? I Hope So.

My cynicism in some aspects of humanity has been beaten back this morning, just a little.

  • JP is writing about trust and relationships, and how they are affected, enabled, or hindered by technology.
  • Stowe writes perhaps his most thought-full post ever, and states, beautifully, “Most of the time we tech bloggers never take our eyes off the tech in the foreground to even acknowledge the world behind, forming the background. Today, it’s the context that is dominating my thoughts: the sputtering economy, the world tearing its own throat like a rabid and double-jointed carnivore, the deaths, the bombs, the inexorable heat, the rising costs… and meanwhile a bright and shiny tech culture skips above the surface of that boiling sea of trouble, like a child’s balloon rising above a troubled city: a beacon or a toy?”

  • Grace answers Victoria’s Craigslist ad, and the two jointly create a resource that helped hundreds, maybe thousands, of individuals affected by Hurricane Katrina.

  • Euen notes “Who knows, maybe out of all of these conversations and exchange of ideas that blogging has enabled we will some day tackle the really big stuff. The stuff that matters. How we run ourselves and conduct ourselves in the world. It may not be any one particular group and certainly unlikely to be some sort of “killer app.” but I am more and more confident that the connected worldview that we are fostering is different from what we have experienced before and certainly affords us a new means of expressing ourselves and making our views known. Maybe we will be able to regain some of the ground lost to those who see life as a fight which has to be won and polarise everything into black and white maybe the middle has something to add after all.”

Have a good Sunday, everyone.

And Offline, Too

Dhiraj Gupta: “Customers want to be heard, acknowledged and rewarded. They know what they want, they want to do it their own way, and that too, without talking to the customer support hotline. This rebuilding of Trust is the key to building a successful business, online.”