Read Ken McCarthy’s latest blog article titled “The experience economy”. [Article Reprint]


Ken McCarthy’s latest article is reprinted here.

The experience economy

One of the most useful business experiences I ever had took place when I was just in my late teens and early twenties.

What was my business?

I sold experiences.

Specifically, I was a concert producer. This involved selecting bands, renting halls and most, important of all, filling seats. Very early on, I learned that smart promotion could move mountains. I also learned that people bought experiences.

This has always given me a major leg up on competitors who think that people buy products or features and benefits. They buy those too, but the winners in the marketplace go way beyond that.

It’s kind of a hard concept to convey to people (as many super-profitable strategies are), but nine years ago Jim Gillmore and Joe Pine wrote an article for the Harvard Business Review which put some flesh on the idea for people. The article was called “Welcome to the Experience Economy.”

The article led to a book and the book led to a very busy and lucrative consulting practice.

I was in Chicago last week visiting Gerald Haman’s Accelerated Innovation Center with David Bullock. Joe Pine was there and we posed for this very staged-looking photo.

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Joe gave a talk later that evening which I had the opportunity to attend. It was videotaped and you can watch the highlights version by clicking the link below.This is one of those ideas that may take a while to sink in so don’t expect instant fireworks as you’d get from a A to Z “how to” tutorial.But, if you want to put your business on more solid ground and make it more stable, more profitable, and even more fun, start thinking of yourself as an experience merchant.

It’s one of a handful of magic ideas I’d hate to be in business without.

Video: Joe Pine on ‘The Experience Economy’

Ken McCarthy

Ken McCarthy organized and sponsored the first conference ever held on the subject of the commercial potential of the World Wide Web. His company Amacord Inc., formerly E-Media, was one of the first Internet-based businesses in the world.

In addition to working with small and mid-sized business clients since 1993, McCarthy was a consultant to NEC’s Biglobe, the largest online service in Japan, from 1996 to 2001. His book The Internet Business Manual was the first book on web entrepreneurship published in that country. He is also credited by Hotwired magazine with being one of the people responsible for the development and popularization of the banner ad, one of the key underpinnings of commercial Internet publishing.

A graduate of Princeton University, McCarthy came to the Internet industry with a varied background which included technical consulting for two of New York’s top investment banks, lecturing on educational psychology at MIT, Columbia, and NYU, and founding and operating a number of small businesses, including one that helped produce an Academy Award winning documentary. Ken McCarthy is associated with the following blogs: Ken McCarthy’s Blog, System Video Blog and Internet Video Marketing Letter

*IMNewswatch would like to thank Ken McCarthy for granting permission to reprint the latest article.

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