network effects support premium pricing bob pritchett logos bible software

Network Effects Support Network Effects Support Premium PricingPremium Pricing

Bob PritchettLogos Bible Software

The ProblemEverybody Is an Author

Content OverloadContent Overload

Old content never diesContent creation is easier than everIt’s all at our fingertipsLots of it is free

It’s Good Stuff!It’s Good Stuff!

Good News:◦For every 1,000 cat videos and blog posts,

there’s only 1 good piece of content.Bad News:

◦There are a bazillion cat videos and blog posts, and consequently a lot of good, free stuff.

Really Bad News:◦Systems for identifying good, free stuff are

getting better.

The ChallengeMaintain Pricing to Support Quality Content Creation

The LawThe Law

Law of supply and demand is commoditizing content

Only unique and valuable content can command premium prices

AttentionAttention

Two ways to get and keep attention:◦Brand◦Community

Hard to do:◦Too much noise◦Every item is its own brand and requires

investment to earn attention

The SolutionThe Solution

Build brand and attention around a unique and valuable core

Network effects mean your brand and attention grow exponentially

Creates consumer lock-in (even if only of attention)

How ToHow To

Choose a knowledge domainInterconnect contentCreate unique digital databases

◦They grow◦They are of mysterious size◦They don’t go out of date

Integrate tools and contentBuild community

DemonstrationLogos Bible Software

Other ExamplesOther Examples

Ancestry.comConsumerReports.orgPreachingToday.comWestlaw.com

◦PeopleMapNEJM.org (The New England Journal of

Medicine)◦PowerPoint slides, audio articles, etc.

ACM.org◦Controlled vocabulary

Game PlanGame Plan

Identify knowledge domainsIdentify interconnectionsCreate unique complementary dataCreate tools to enhance content useBuild community around content