Friday, July 9, 2010

Is there value in free ?

One of my best friends used to use the line "There is no value in free !" to describe how it would be impossible to derive monetary value from something free. I think he was trying to describe why he thought (at the time) open source software would fail. 

As I consider the open-source nature of my life, the question that begs an answer is simple - how can I get paid for this ? My father taught me years ago a simple lesson - "Find something you love to do, and then find somebody to pay you to do it". In this way, whatever you choose to do in life is not work. It is something that you are passionate about.

So could I turn this interest in open-source into a way of life ? Could I apply Sales 101 and monetize my passions ? I suppose the model to follow would be Red Hat's. They made a successful business out of selling free software !  Could I sell the sun ? Could I sell the wind ? Who would buy it ?

Jeffery Gitomer teaches that Sales is all about finding ways to monetize the VALUE of whatever you are selling. So then I would need to describe the value of the Sun, and the value of the wind. That should be straightforward. As we watch the events of the world, we see the US Presidential Administration wax rhetoric about the need to "lessen our dependence on foreign oil". Is it oil that will continue to provide the US with its energy needs ?

So then why NOT sell the value of energy derived from alternative sources ? What would the economies of scale look like ? Would it be better to set up a giant wind-farm to power a city, or should each building have it's own power source ? Could solar power - either in photovoltaic form or solar heating form augment the system enough to allow an entire building to be self-sufficient ?

I like the "local" model better. It eases the dependency on infrastructure. While hydrogen fuel-cells provide a lot of promise for a cleaner source of automotive fuel, the complete lack of infrastructure for delivering that hydrogen will stunt the overall adoption rate. But if each building were able to harness enough energy from alternate sources, the infrastructure would be irrelevant. Instead of having utility companies, charged with the "creation" and transmission of electricity, the tax dollars used to support coal-fired generation systems & managing electrical grids could be used for more "social" purposes - I won't delve into what those options could be here.

So I reflect, wondering if this could be a venture I could monetize. Is there sufficient market demand to enter the world of selling alternate energy ? While there are already many small companies in the space, why aren't they being more successful ? How could I approach the market in a way that would immediately differentiate my company from the others ?

Jeffery Fox teaches that Sales is all about generating demand. You don't wait for a niche market to reveal itself - you create it ! Once that is done, you are immediately poised to fill that niche. And that is step one to success.


The opinions expressed are purely those of the author. Opinions are like noses - everyone has one, and they are entitled to it !

1 comment:

jvanostrand said...

Timing is everything in business and when it comes to alternative energy business plans you better make sure you can stay around a long time. The alternative energy business has been here for 40 years or so,there's no huge leader (is there?), and no big shift has happened.

I think bio-diesel has a chance, not that most people will want to brew their own, but rather that it integrated seamlessly into our current energy consumption habits. And in a pinch, use diesel.

The time to do this is when a national or global mind shift happens and investors and voters are ready to open their wallets.

But, perhaps there are less sexy financially sound ventures that stand a chance. Maybe it doesn't have to be a consumer product or landmark shift in energy habits. Maybe some niche, a dull, industrial solution maybe, that can gain market share.

More in your line of work would be data centre cooling. It's horribly inefficient in Canada considering half the time a passive heat exchanger may work.