Free Vs. Paid Subscriptions; Apples and Oranges?
By · CommentsSomething has been bugging me since I posted “InTech’s Past, Present, and Future.” There were many thought provoking comments made on the post, and I was particularly intrigued with David Greenfield’s comments, in which he said (in part) “The fact that this online savvy audience is still highly interested in print underscores the comments made by others here that print is not dead.” The reason this was “bugging” me was that I too subscribe to lots of free publications that I never read. Does that sound irrational? You better believe it does!
Free Stuff Makes Us Crazy
“Zero is not just another price, it turns out. Zero is an emotional hot button – a source of irrational excitement.”
Dan Ariely is the James B. Duke Professor of Behavioral Economics at Duke University, founder of the Center for Advanced Hindsight at MIT’s Media Lab, and author of the book, “Predictably Irrational.” In his book, Ariely describes several experiments he and his team conducted to test why it is that free stuff makes us crazy.
In one experiment, they sold two different kinds of chocolates at a large pubic building; Lindt truffles and Hershey kisses. They priced the highly prized Lindt truffles at 15 cents (about half of the wholesale price) and the Hershey Kisses (considered perfectly delicious but a little lower quality) at one cent. As you may expect, the buyers flocked to the truffles by a ratio of 73 percent to 27 percent, since it represented such a tremendous bargain. Sounds perfectly rational.
Next, both prices were lowered by just one cent. The truffles were still priced fourteen cents higher than the Kisses and now were an even slightly better bargain over their normal price. However, suddenly the preference was almost completely reversed and the Kisses were chosen 69 percent of the time! This experiment was reproduced in several other contexts and is demonstrable in many commercial case studies. Ariely concludes, “When choosing between two products, then, we often overreact to the free one.”
Discontinuous Functions
There are other discussions in the book as well as Chris Anderson’s book, “Free,” that document the step function that occurs between zero and anything else. In mathematical terms, then, there are two domains; the paid and the free. The function that describes the paid is not the same as the function that describes the free. This has profound implications for paid content of any kind, especially the concept of micropayments.
So how does this apply to InTech? I return to David Greenfield’s observation that his “online savvy” audience is still interested in the print version, proving that print is not dead. Can we be sure that this is indeed evidence that readers find value in the print version? Or is it possible that it is simply another predictably irrational decision influenced by the fact that the subscription is free? Before tackling those questions, let’s consider one more example.
Would You Like Fries With That?
Let’s say you visit your favorite fast food restaurant and are considering meal options. One option is a serving of french fries for $0.50. The second option is a burger for $1.50. Finally, the third option is a burger and fries for $1.50. What would you choose? By the way that’s not a typo – the second and third options are the same price. My guess is that approximately 84% of you would choose number three.
The reason for my prediction is based on a clever, real world example of this pricing model that Ariely recounts. He was browsing the Internet and came across the following pricing options for a subscription to the Economist:
- Economist.com subscription: US $59.00
- Print subscription: US $125.00
- Print & web subscription: US $125.00
Being the scientist he is, Ariely was curious about this approach and decided to study how others would react. He posed this same advertisement to students at MIT’s Sloan School of Management and asked them which they would choose. 84% of them chose the third option. Next, Ariely offered the following to a second set of Sloan MBAs:
- Economist.com subscription: US $59.00
- Print & web subscription: US $125.00
Certainly by now, you’re suspicious and so you probably don’t expect a rational decision. Indeed, without the decoy of the print-only option a mere 32% (a drop of almost 63%) chose the print and web option. Once again, experiments confirm that this behavior is predictably irrational. A detailed discussion is beyond the scope of this post, so you’ll need to read the book for a full accounting. However, it is helpful in the context of this discussion, which is…
What Does This Mean to Free Publications?
The first conclusion I would draw is that one cannot draw conclusions from readers’ decisions to subscribe to something that is free. It’s a demonstrably irrational decision with no down side risk. The real proof would come if subscribers were asked to pay $1 per year and see if subscription rates changed (my expectation would be that they would drop by about two thirds).
Furthermore, it casts doubt on a frequently quoted result of ISA member surveys that indicated InTech as one of the most highly valued member benefits. We’ve seen that our perceptions of value are highly skewed by the context in which they are presented. I’m not saying the results of the survey are wrong, but rather that you cannot necessarily consider them to be rational answers.
Finally, I think the most important lesson is not to try to apply a paid paradigm to a free context. We cannot assume that the rules are the same for both. In one sense, I was guilty of doing so by asserting that declines in print subscriptions of newspapers and magazines directly relate to InTech subscriptions. While I still think that there are many common factors, we must be careful and remember that there is a discontinuity between the worlds of paid and free.
Popularity: 14%
Tags: behavioral economics, Dan Ariely, Economist, free, free publications, InTech, micropayments, MIT, Predictably Irrational, subscriptionsIdeas Are Easy, Implementation Is Hard
By · Comments
Thus says entrepreneur and venture capitalist Guy Kawasaki. As someone who has not only been there, done that, bought the T-shirt, Kawasaki also hears his share of pitches from would-be venture-back entrepreneurs. He has grown very weary of not only “Really Bad PowerPoint,” but what he regards as a delusion of almost all startups that the value is in their idea.
The old argument goes that if you have great people they will come up with great ideas. My perspective is different: If you have a great idea, then you can find great people to implement it.
Why am I posting this here on Our ISA?
I know that more than a few leaders are uncomfortable with discussing many of these topics in such a naked, vulnerable forum. And I get it. However, I think it’s important to consider a couple of things. First of all, it’s doubtful we’re going to unearth any ideas here that have not been contemplated or even attempted before. Indeed, its greatest value is probably found in identifying old ideas and strategies that have worked other contexts. Second, a great idea with bad implementation is like a pretty book cover with no pages. It looks nice on the shelf and ”coulda, shoulda, woulda been” great. A bad idea with great implementation is like Microsoft Windows (there were much better operating systems in the early days that simply weren’t implemented as well).
So let’s generate ideas and use Our ISA as a tool to communicate them and get some great people to implement them.
Popularity: 9%
Tags: Guy Kawasaki, implementationIn yesterday’s Chicago Sun-Times the following advertisement appeared in the Help Wanted classified section:
Sun-Times Media
Electrician
The Chicago Sun Times is searching for an Electrical Maintenance electrician. Qualified candidates must possess the ability to diagnose and correct electrical malfunction on production equipment, thorough understanding of Programmable Logic Controllers and assiciated input/output devices (i.e.: Allen Bradley PLC5, SLC, ControlLogixs[sic]) and the ability to utilize a PC to interrogate machine control systems to indentify and repair problems as well as reloading control system software applications. Responsible for the start up and shut down of production equipment in accordance with company safety procedures, including lockout/tagout procedures. Ability to work within deadlines associated with the production of a daily newspaper in a team environment and throughout all levels of the organization. All candidates should have completed a technical training program and a minimum of three year of industrial electrical experience. Must be able to work flexible days (including weekends) and shifts. Qualified candidates should forward their resume and salary requirements to: Chicago Sun-Times…
Popularity: 11%
Tags: certification, electrician, technician, TrainingGovernance – Identifying New Society leaders
By · CommentsIdentifying volunteer leaders is a challenge for every professional organization. A case could be made that the ISA presidential commitment is too long and this narrows the field of potential candidates. There is a definite a plus for the president to be knowledgeable of the multiple facets of ISA operations, but there are some talented industry leaders who could get up to speed, make a positive impact, but cannot commit for 5+ years.
What if ISA had someone like (just to pick a name) Maggie Walker, Dow’s VP for Manufacturing and engineering work processes, consider running for president because the time commitment was manageable, i.e. more like two years. Could this have some positive benefits or would there be too much risk with not be familiar enough with ISA operations and culture? Since ISA already has a CEO (Pat Gouhin) to run “the business”, could the presidential role could be more of chief promoter and visionary?
Failing that – or maybe in addition – there could be a plus to have a higher level industry appointee on the Executive Committee or Executive Board –maybe for a two year term. Think about some people like John Berra (Emerson Process Management), Norm Gilsdorf (Honeywell), or Uma Chowdry (DuPont). They would provide a good, outside perspective and perhaps challenge some of the status quo.
Another possible piece is that the Strategic Planning Department needs more continuity, with terms in the 3 – 5 years range to provide guidance to both the ISA CEO and President. That committee might include Past Presidents & officers as well as a healthy dose of other perspectives to ensure zero groupthink.
Page 39 of the Exceutive Board MOP details the duties of the society President (http://preview.tinyurl.com/yfgwb96)
Comments or other ideas?
Popularity: 7%
No tags for this post.ISA Governance – Council of Society Delegates
By · CommentsThe Council of Society Delegates (CSD) votes on society officers and any changes to the Bylaws. It was the right model when ISA was formed back in 1945 and during the time when geographic sections were the best way to get information and participate.
Times have obviously changed. Are there any comments or recommendations if the CSD is still the best model?
Council of Society Delegates
- Highest ISA governing body.
- Controls policies of the Society through its powers to nominate and elect Officers, to amend the Bylaws, and to review the annual reports of Officers
- Representation is one delegate from each active ISA Section.
Society Delegates
- Serves as the Sections official representative to the Council.
- Elected or appointed, according to the Section’s Bylaws.
- Term is typically one year and Delegates may serve consecutive terms.
Council of Society Delegates Meeting
- Held annually in conjunction with the Society Annual Meeting.
- Comprised of two sessions
- First Session — Individual meetings of District Councils to receive and review District Vice President’s Annual Report, elect District officers, and verifiy Delegates for Council of Society Delegates meeting.
- Second Session — Council of Society Delegates Meeting to receive report of Society Nominating Committee, elect officers, amend Bylaws.
Additional details are available in the ISA Manual of Organization and Procedures
Popularity: 8%
Tags: bylaws, Council of Society Delegates, delegates, Society Annual MeetingISA Has Forgotten Its Original Mission
By · Comments I – Dave Harrold, 40+ year senior member of ISA – would argue that a key to returning ISA to a viable organization is to embrace its original mission; that is to establish an organization that helps Instrument Technicians become ever better at their job. (FYI: It’s no fluke that the longtime name of ISA’s publication is “InTech”).
Until the late 70’s early 80’s ISA …did an excellent job of addressing membership needs, but then ISA’s leadership was hi-jacked by self-proclaimed “instrument engineers” and ISA’s wheels began to fall off. What remains is a rudderless organization that relies on “fuzzy logic” to chart its course. Those who argue that ISA needs to be a professional society for “automation and control engineers” are missing the real need; ISA needs to return to its roots and embrace the Instrument Technician who continues to search for straight answers to everyday questions.
Popularity: 12%
No tags for this post.Strategic plan
By · CommentsI thought it might be useful to our discussions here if I quoted from the Society Strategic Plan as outlined on ISA.org our society website. Some people have complained, unfortunately in private, that this site OurISA is “too negative”. In fact it is not meant to be either negative or positive but a conduit for ideas on how best the society can overcome the difficulties it faces now and how it can function in the “new reality” that is the 21st Century.

There are two items on the website that I could find relating to the Strategic Plan for our society and this is the first.
If you wish to find where this is on the site go first to the home page then from the menu on the left select Society Leader Resources, down the page you will find a section called Documents. One of these is called Strategic Plan. Clicking on this will lead to the Strategic Plan and in the column on the left you will also see Values.
ISA Strategic Plan
Automation is the creation and application of technology to monitor and control the production of goods and services.
The ISA Vision is to work in partnership with members, customers, and subject matter experts to disseminate the highest quality, unbiased automation information worldwide.
The ISA Mission is to become the standard for automation globally by certifying industry professionals; providing education and training; publishing books and technical articles; hosting conferences and exhibitions for automation professionals; and developing standards for industry.
The ISA Strategic Goals are to:
- Attract and retain as members and customers, professionals in the field of automation worldwide.
- Develop globally recognized standards for the automation community.
- Serve students, professionals, and industry via career awareness, continuing education, scholarships, certifications, and other programs.
- Deliver valued information resources via publications, conferences, and exhibits.
- Provide the financial resources to assure long-term financial stability.
There is one other page called Values which is also included in the Strategic Plan section of the website. This lists ten basic values for our Society, the values which guide our Executive Board, and our many committees in their deliberations and by which the “ordinary” members and the Automation community may judge us.
Here they are:
Values
- Member/customer focused
- Meet all requirements.
- Exceed expectations where possible.
- Provide maximum value to ISA members and all other customers.
- Flexible
- Do what works.
- Be adaptable and open to change.
- Be proactive in responding to changing market conditions.
- Responsive
- Meet all schedule commitments.
- Do what the customer asks; meet his/her needs.
- Be decisive; take action quickly.
- Be alert to changing needs.
- Ethical
- Conduct all business consistent with the ISA Code of Ethics.
- Conduct all communications in an open and honest manner.
- Innovative
- Be creative and clever; value the new and different.
- Accomplish all things in a superior way.
- Take calculated risks.
- Continuously seek better ways to achieve goals and objectives.
- Technical leadership
- Assure that the Society and its members are at the forefront of new technology developments and their application.
- Utilize the full range of available communications technologies in Society operations.
- Be the technical resource of choice for instrumentation, systems, and automation. professionals.
- Inclusive
- Value diversity (gender, culture, technical, industry, job function).
- Serve the full range of technical and business interests on a global basis.
- Seek and value collaboration and partnerships.
- Collaborative
- Utilize collaboration and partnership as the fundamental way for staff and volunteers to work together, and for ISA to work with other organizations.
- Recognize the contributions of individuals, but value the quality of the collective decisions and end results.
- Mutuality of benefit
- Assure a win/win in all relationships: parties should benefit fairly and proportionately from decisions, actions, and agreements.
- Strive for mutual respect (members, staff, customers, partners).
- Fiscally responsible
- Provide the resources needed to accomplish the society’s goals and objectives.
- Assure the financial health of the society.
- Seek opportunities to increase financial strength of Society.
Popularity: 8%
No tags for this post.7 Reasons to Include Facebook Fan Pages In Our Marketing
By · CommentsThis post was originally published on my personal blog, Domesticating IT, and is re-posted here for completeness.
In a recent discussion with ISA leaders regarding how to lessen the number of emails it sends members, the topic of Facebook fan pages came up. The context of this discussion was focused on how ISA could be at least as effective at marketing its publications while reducing the number of emails it sends. I was asked to explain specifically how a fan page compares with email marketing, and I came up with seven advantages:
1) “Opting In” vs. “Not Opting Out”
People must take an affirmative action to “become a fan,” which says a lot more than “I choose not to opt out.” From a marketer’s perspective, these become your top shelf, number one, gold plated prospects. And you treat them that way.
2) Marketing Upside
When someone becomes a fan, all of their friends see it. This has tremendous marketing “up side.” When someone doesn’t opt out of emails, nobody knows and there is zero additional up side.
3) Build a Community
Fans can interact with one another on the fan page, providing book reviews, answering questions, talking about their favorites, etc. This is the very essence of Web 2.0.
4) Analytics
Facebook provides detailed statistics with regard to interactions that occur on fan pages. This makes is very easy to quantify the value of the page over time. Typical email marketing solutions provide counts of the number of times a message is read or a link is clicked. However, Facebook has additional metrics that can measure interactivity and “buzz.”
5) Reach
Fan pages are open to everyone on Facebook (that’s 325 million users) – not just your email database.
6) Demographics
The fastest growing age demographic on Facebook is 35 to 45 year olds. This is a critical demographic for many organizations.
7) Cost
Fan pages are FREE. Enough said.
Let me know if I missed something.
Popularity: 7%
Tags: buzz, demographics, email database, email marketing solutions, Facebook, fan page, fan pages, interactivity, ISA, metrics, publication, statistics, web 2.0Project Management Tools and Tips
By · CommentsOne of the great benefits of membership is the availability of excellent and practical technical publications at reduced prices.
Our outgoing President, Jerry Cockrell, penned a very useful book some years ago called “Practical Project Management – Learning to Manage the Professional.” This softbound volume aims to sharpen your project management skills by focusing on techniques that are proven to be effective in today’s quick-paced, budget-sensitive environment.
If you’re a project manager in the instrumentation and automation fields, you know the pressures to perform faster, better, and cheaper. Yet, if you’re like most technical professionals, you’ve had little or no training in project management.
Starting with an overview of what every project manager needs to know, this authoritative book defines each unique phase of a project and then provides practical knowledge in areas such as budget and cost estimates, contracts, negotiating, team building, scheduling, and choosing project management software. It even devotes special attention to often-neglected, but important project completion and closeout activities, including tips for how to write and make the most of final project reports.
One critic has praised this book stating: “Practical Project Management has been one of the best books I have read, not just because of the key information and tips I have learned from it, but because of the examples and templates that have helped me so much. It is a book made for engineers!”
Here are the details:
Practical Project Management – Learning to Manage the Professional
Popularity: 4%
Tags: Gerry Cockrell, Project Management, Publications
I was recently asked for my thoughts regarding the reasons for InTech’s (advertising) struggles and how we might improve the advertising market share of the magazine.