Economics

by Mike Masnick


Filed Under:
customers, user generated content, users

Companies:
scribd



Expectations Matter, Even If You're Not 'A Customer'

from the false-distinctions dept

We recently had a discussion about law professor Eric Goldman's complaints about Scribd, after the site, which he'd been using regularly to upload and share legal documents, quietly put up a paywall on older documents without making that clear to users. Suddenly, many old documents that Goldman had thought he was sharing with the world, were hidden behind a lock and key, unless you paid up.

While many people agreed that this was a mistake on the part of Scribd, in talking with Goldman separately about this, he noted that a few people strongly disagreed with his position, and noted (accurately) that he was getting a free service from Scribd, and thus he was "not a customer" and shouldn't complain at all. We received a few similar comments here, effectively suggesting that if you're not paying, you're not a customer and, thus, have no right to complain.

This is silly -- and wrong. It's where the often artificial distinction between "customer" and "user" and "product" gets blurry and, at times, questionable, especially in the realm of "user-generated" content. There are more ways to "pay" than with money. In Goldman's case, he's actually been "paying" Scribd by providing it with valuable, sought-after content that he uploads. Scribd is "paying" Goldman with free hosting, bandwidth and services. Advertisers are "paying" Scribd with money. Users are "paying" Scribd with their attention. All are "customers" in some sense, while also being users and, potentially, "the product," as well. Focusing only on the relationships where actual cash exchanges hands misses the point (greatly).

Once you realize that, it makes perfect sense for Goldman to complain. He was using the service under pretty explicit terms that he was providing these documents to share them with the world. Scribd unilaterally (and quietly) changed those terms on him, to something completely different. In turn, by pissing off Goldman, and having him seek alternatives, Scribd is actually harming its overall site. Even if you accept the narrow definition of "customer," to suggest that Scribd's only customers are their advertisers, pissing off Goldman should still be seen as a problem, because as Goldman uses alternative services, it lessens the "product" that Scribd can offer to those particular "customers."

So rather than going with the kneejerk, "well, if he's not paying for it, he has nothing to complain about," it's important to look at the overall ecosystem, and how different pieces are "paid" in different ways -- and how upsetting one key element of that ecosystem, can harm all sorts of "customers."

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  1. icon
    Mike Masnick (profile), 22 Sep 2010 @ 12:27am

    Re: Re:

    You're right, Goldman isn't a customer. He's an unpaid employee. Scribd runs its businesses off the backs of thousands of individuals who tirelessly write their works and give them to Scribd, free of charge, without expectation of monetary compensation.

    Or you flip that and say that Scribd provides server space, bandwidth, formatting, and display capabilities free of charge, without expectation of monetary compensation.

    So, you could just as easily claim that Scribed is an "unpaid vendor."

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