Monday, March 14, 2011

Making Money Online Easy

Last week, Novelr profiled Amanda Hocking, whom they dubbed the very rich indie writer. Hocking is a 26-year-old woman who writes “paranormal romance” novels and publishes them herself through Amazon’s Kindle store. She’s been very successful, and has made a lot of money.


Her success has led to all sorts of speculation — as success will do — and comments from folks who think they could do what she does, too. They think she’s an overnight success. She recently posted a response at her website, and I like it. Here’s an excerpt:


This is literally years of work you’re seeing. And hours and hours of work each day. The amount of time and energy I put into marketing is exhausting. I am continuously overwhelmed by the amount of work I have to do that isn’t writing a book. I hardly have time to write anymore, which sucks and terrifies me.


If you read Hocking’s post, you might understand some of my own mindset over the past few years. Imagine that instead of discussing supernatural love stories, she’s writing about an unexpectedly successful personal-finance blog. There are some close parallels. I don’t mean that in a negative, complain-y way. I just mean to stress that yes, you can make it big doing something you love, but it’ll probably take a lot of hard work. (And luck. There’s always a bit of luck involved.)


Speaking of making money: There’s been a small flurry of online info about making more money lately. (You know this is one of my pet topics, right?) For example, Inc. magazine posted an article from Jason Fried about how to get good at making money. Fried’s list is targeted at small-business owners. Trent at The Simple Dollar responded with his own list of five easy steps to make money for average folks. Both articles are interesting.


Moving on: I’ve written before about the value of a neighborhood exchange — an informal system of borrowing and lending goods and services. David at My Two Dollars has a great list of items to share with your neighbors to save money. I realize that not everyone likes to borrow or lend things, but if you live in an area with good social capital, this can be a great way for everyone involved to save space and cash.


Since returning from Africa, I’ve been struggling to get everything done that needs to be done. There just aren’t enough hours in the day. So I was interested in the latest post at Pop Economics, which asks, “How much do you value your time?” Pop says the balance between time and money is tough to find — we want more of both. He’s actually experimenting with a personal assistant, which I like. I’ve been waiting for an average joe to do this and report on how it goes. (As opposed to somebody like Tim Ferriss, who makes it sound like a way to become superhuman.)







Google has gotten a lot of attention for the launch of One Pass, the all-in-one subscription plan for publishers that the search giant revealed earlier today — primarily because it made for a nice counterpoint to Apple’s new in-app subscription system, which launched on Tuesday. While Apple’s offering is closed and takes a big chunk of the revenue from publishers, Google’s takes a much smaller cut — and because it’s based on the web and not on controlling access to a walled garden, Google’s system is much more open. That said, however, it’s not at all clear that publishers will get anywhere by signing up for it, open or not.


The main benefits of Google’s plan are fairly obvious: It doesn’t force publishers to provide the company with preferential access to their customers, the way Apple does by requiring in-app purchasing for all subscription services, and Google is taking only 10 percent of the revenue any publishers bring in via its payment system, while Apple takes 30 percent of all subscription fees. On top of that, as MG Siegler notes, the One Pass system provides publishers with access to information about those who sign up — names, email addresses, zip codes and so on — which is crucial data that content companies use to market their services to advertisers. Apple turns this option off by default, and users have to opt in.


That’s the good news. The bad news? Google’s One Pass is pretty much just a warmed-over content paywall. All it does is collect the money for publishers who want to put up a toll-booth around their content. In fact, the thing it resembles the most — as Josh Benton of the Nieman Journalism Lab notes — is the Journalism Online Press+ system that entrepreneur Steven Brill and former Wall Street Journal executive Gordon Crovitz have been peddling to newspapers and magazines for the past year or more, without much success.


Like that system, Google’s service is essentially designed to handle the payment processing for multiple subscription sites, so users can theoretically sign up for dozens without worrying about being nickel-and-dimed by each one. There’s just one problem: There’s no sign that users have any interest in doing this — or at least, not in large enough numbers to make it work for anyone other than perhaps The Economist and the Wall Street Journal. Those who have put up new paywalls, including The Times of London, have seen the vast majority of their readers disappear into the wind.


One of the reasons users of Apple products like the iPhone and the iPad seem a lot more willing to pay for things like apps is because the experience is so much better and paying is so easy. Despite that, magazine and newspaper publishers have have had little success so far in getting people to pay for their apps. Why would it be any easier with Google’s One Pass? If anything, it’s likely to be even harder, because it’s based on the open web — and users are likely to notice that free content is all around them, while iPhone and iPad apps do a fairly good job of disguising that fact.


So congratulations to Google for making some hay with its launch, but any publisher who sees One Pass as some kind of golden ticket is dreaming in Technicolor.


Related GigaOM Pro content (sub req’d):



  • How Media Companies Can Compete Online

  • Demand Media — Search Spam or the Future of Content?

  • Google Needs to Fix Its Spam Problem Even If It Hurts


Post and thumbnail courtesy of Flickr user David Kozlowski




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