There’s lots of interesting news about the “free” business model out there. Shane sent me a link to a speech by Wired Magazine editor Chris Anderson where he talks about being in the business of “free.” We already understand that model well - but there are some who don’t. Apparently in that latter category are Jimmy Wales and Larry Sanger the founders of Wikipedia, and Citizendium.

What are you talking about, Blanchard? What I am talking about is Google’s announcement that it will create its own online encyclopedia, called Knol - short for Knowledge. Why is Google doing this? Does the world need another Wikipedia?

Contrary to what Larry Sanger thinks, we don’t need another Wikipedia, though he thought so and created Citizendium, which is Wikipedia with known authors. That is the model that Google will follow with Knol. And they are doing this because Google, to borrow from another big web company’s slogan, is “Earth’s Biggest Billboard.” Let me explain.

Take a look at Google’s search results. Search for almost anything and a Wikipedia article comes up. That sucks for Google since they can’t place any ads on Wikipedia, because Jimmy Wales won’t allow it. So Wales faces this prospect: allow advertising, or die. Google will most certainly be successful with its Knol project. Will they manipulate search results so that Knol articles pop up before Wikipedia’s? Of course they will. So it won’t be too long before Wikipedia content becomes marginalized, and Knol wins.

Google has hundreds of millions of users, and billions and billions of dollars, and Wales is out there trying to get people to donate money to keep Wikipedia running. Sanger is doing the same thing with Citizendium, and as of this writing had raised $1072, to support his site. Tip from a guy with a degree in economics: that’s not gonna sustain your site.

So as I wrote before - you HAVE to adopt the free/advertising model, 1) because it is the only way to get into the game; and, 2) if you don’t, someone else will monetize your customers.

Jimmy and Larry that trumpet you hear blowing Taps is for you my friends.