Nothing is free

I was reading a post by Fred Wilson the other day titled In defense of free.  For you non tech folks that read my blog, Fred Wilson is one of the most influential investors in technology.

As I was reading his post though, I realized that many of the things he views as "free" I simply view as something that you pay for with a currency other than dollars.

Services commonly referred to as "free" such as Pandora, Twitter, Facebook and even TV shows, are all great and I use each of them almost every day in one form or another.

But I don't view them as free.  I just pay for them in something other than dollars.  And sometimes, the payment is way more valuable to the service provider than money.

When you listen to Pandora, you're paying for it with your attention by listening to ads. You pay Facebook by giving them the right to collect your personal information and web usage so they can service their advertisers more effectively.  And when you use Twitter you're paying them with your attention so that they can possibly build a revenue model.

In each case, even though you're not paying with money, you are paying with something.  I personally would love it if I could pay Facebook a nominal fee and not see any ads, have complete privacy, and not get tracked all over the web.  Alas, that's not an option.

Just because something doesn't cost money doesn't mean it's free.  So any time you sign up for a "free" service, ask yourself, what am I paying them with.

In every case, you are paying something.

$2.50 plus what?

Remember when people who claimed the notion that we were fighting wars over oil was 'conspiracy theory'.

This logo, which Newt Gingrich proudly stands behind at his podium, can be seen as nothing other than a campaign promise to go to war in an attempt to lower gas prices.

newt-gas.jpg

The problem of course is, $2.50 plus what?

Who should die so we can fill up our cars for $2.50/gallon?  We don't want it to be anyone we know of course.  Just make sure the people that die aren't anyone we know, okay?

These are the campaign promises that American presidential candidates have resorted to.

 

 

A redesign that increased conversions by 400%

If you follow my blog regularly, you know that we've been hard at work on a yoga studio software that helps independent yoga studios manage their students, class attendances, schedules, and all the other things someone needs to run a yoga studio.

From an engineering standpoint, we've done some really awesome things, from allowing instructors to find subs via text messaging, to deeply integrating with Stripe so that our customers can start taking credit cards in minutes.

But as we know, engineering is only half the battle.

And being a small Rails shop one of the things I've come to terms with is that while we've gotten quite good at designing page layouts, application flows, overall user experience, and making important decisions about what to put in and what to leave out of a product, we're not as good at bringing in what I'd call 'the shine' to a complex web application or it's marketing pages.

So, I enlisted the help of Rand Media Group, a small marketing and design company in Chicago.  Disclaimer: they're run by my buddy Ryan Evans, and we happen to inhabit the same co-working space as well.  Though, that should take nothing away from my praise.

Visually, the results are obvious.  Our application was taken to the next level in that it had a much more polished feel, and the landing page did a great job not only of engaging site visitors, but also of telling the story of how we built this product after my wife opened her yoga studio.

But none of that would matter if our signups weren't improving.  Luckily, they're even better than I had hoped for.  We're converting new visitors into trial users at 4 times the rate we were previously, and they're far more engaged on the site when they do visit, visiting twice as many pages.

Check out the before and after below, and our site at www.tulasoftware.com.  And if you're a startup in need of some design help, I can't recommend Rand Media Group enough.

Before and After

 

Web 3.0

My favorite definition of web 2.0, which I believe I found on the Wikipedia article but doesn't seem to be there anymore, went something like this: "Web 2.0 applications assume that a user is familiar with, and knows how to use the internet."  

Meaning, these applications make certain assumptions about what users already know how to do.  The creators of these applications then were freed from needing to teach users certain things they might have felt obligated to teach them 5 years earlier. I love this definition because it focuses not on the technology, but instead on the technical literacy of internet users.

What then, is Web 3.0, and what does it look like?

Most of the definitions I've read have come by way of the Wikipedia article on web 3.0, seem to focus on the technology.  They include predictions about how geo-coordinates come into play, new screen technology, virtual displays, content created by computers as opposed to humans, and other things likely to be seen in the future. While these may indeed be the future of the internet, I don't believe they accurately define web 3.0. Instead, I actually think web 3.0 has already arrived. Like the definition of web 2.0 that I mentioned above, I prefer to think about web 3.0 in terms of what assumptions we can make about  the users of the applications we are making, how that impacts what we make, and where we focus our creative energy.  Here's how I like to define it:

Web 3.0 applications assume that a user already has specific web assets, and they provide users with the ability to build upon and expand these assets.

As design gets better, and interfaces become more and more intuitive, it can be tempting to think that the lesson is to assume users are less computer savvy, and to treat them as such.  I think that approach is a mistake though.  Users are becoming smarter, not dumber.  In fact, users are smarter now than they every have been, and they will continue to become smarter.  And of course, we're also learning more about how humans interact with technology. There are a number of great examples of web 3.0 applications, but I'd like to focus on two. Formstack, which I've written about before, is a huge inspiration to me.  The reason is because while their core offereing is completely unsexy (online forms), they are at the forefront of what the internet is becoming.  They assume that their users have other web assets.  Whether it's a website, a blog, or something else, they make it easy for people to put their forms INSIDE their own web assets.  And, they assume their users might also have an email provider, a CRM system, and maybe a merchant account too.

If you make a product and assume that your users don't have a website,  and wouldn't know how to embed things into their web pages even if they did, you end up with a very different product than a company that assumes their users have websites and do know how to use embed code.

Both can be great products by the way, it's just that one is a web 3.0 application and one is not.

Another great example of a web 3.0 application is ifttt.com - which stands for "if this then that".  Their entire product is based on the assumption that their users have OTHER web products.  Their application allows users to easily hook things up without having to write any code.  For example: "if someone uploads a file to my dropbox account, then send me a text message."  It's a very cool app that's bringing programming logic and thinking to users without the need to write a single line of code.

The opportunity this presents, and of course the challenge too, is to identify the web assets that our users are already likely to have, and to create things that work well with those assets.

I've been thinking about this a lot lately because we\'re working on some big new features for our yoga studio software and we\'ve made a few key decisions based on the fact that I want it to be a web 3.0 application.  These assumptions include:

* Our users already have websites, and they want these websites to maintain their current aesthetic.
* Our uses would prefer to have control over their customer\'s credit card data, instead of us having control of this information.
* Our users will either know what an API key is or we will be able to teach them what an API key is.\r\n* Our users will be able to "hook up" our application to their payment provider by using API keys.

These are not trivial assumptions to make about users.  And for some users we'll be wrong, and that's okay, because I want to try and skate to where the puck is going to be.

I firmly believe that web users are becoming more intelligent, not less.  Certainly, they will continue to demand a clear, easy to use interface. But the systems they use to run their businesses and their lives will become increasingly complex, and their toolsets will become increasingly fragmented.

Hooking together applications, either via API keys, usernames and passwords, or some other means, will become as commonplace as downloading apps and creating blogs.  Identifying and integrating with the assets that your users have, or would find useful if they don\'t already have them, is the future of user experience design.

And as web 3.0 applications begin to take over, people will choose products not based on how many things they do, but by how well a product does the one or two things they need to be done really well, and whether it fits in neatly with the other tools they already have or are thinking of using.

The opportunity this provides is amazing because it allows application makers to focus like a laser on a nitch that they can be awesome at, and then hook into other systems (or allow other systems to hook into them) that they might not have as much domain knowledge about.

The long tail is only getting longer. It turns out though that as users, we have multiple tails we need to connect.  

Applications that connect, and that can be connected to, enabling users to create their own systems - that is web 3.0 to me.

It's already here, and it's all around us.