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Tuesday, December 30, 2008

Common Craft on its success and business models

ReadWriteWeb have done a nice end-of-year profile on Common Craft, the clever folk behind those RSS in Plain English and other videos which explain social media and web stuff.



It's a nice read and the part about why Common Craft deciced to move away from its custom video service into its current licencing business model is interesting:

  1. Custom videos do not scale. We would have to hire people to grow the company and we don't want to hire. We are a two person company.

  2. Custom videos are usually promotional. We are more comfortable with education than promotion. Another realization is that promotion is fad-driven and education isn't as much. We see a longer lifespan for our videos in education.

  3. Our goal is independence - we want to work for our own goals on our own schedule and maintain a lifestyle that supports us."

What is Common Craft going to do instead of making themselves available for hire making custom videos? Lee says that for the past year they've been getting requests three or four times a week for permission to re-use their Plain English videos. The solution they decided on was licensing them for corporate and eductional use.

Common Craft now sells licenses for high-quality, downloadable versions of their explanatory videos. All of their time working is now spent building out the library. Videos are licensed for under $20 for individual use and $350 for site-wide use, like on a company intranet. Commercial licensing, for use on public commercial websites, is the next option the company will be offering.

Of course the video content is available free to anyone online, but Common Craft says that many companies feel far more comfortable paying for official permission to use high quality, unbranded versions. There's certainly no DRM involved.

"People want to do the right thing if they know the rules," Lee LeFever says. "Our challenge is to educate people about how we expect our videos to be used. We're lucky to have fans that feel good about supporting us with their purchases. Given limited resources, we would rather spend time educating people on the right thing to do than trying to make the wrong things impossible."

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