Business Lessons from the Grateful Dead

In the music business, most performers create an album and then go on tour to promote it. The Grateful Dead followed a business model that was completely different from this. Their primary source of income was from touring and from the sales of products like T-shirts. They also condoned the recording of their concerts by fans—something that is strictly prohibited by most artists (although Dave Matthews does sell tickets to some fans to record concerts).

This willingness to “give away” their music through fan recordings made the Dead stand out in their business. It is also instructive in today’s world, where the products we sell are increasingly related to knowledge (such as service businesses and information products)—something we examined in a recent Trekking issue, “Getting Paid for What You Know.” The question is what to sell and what to give away.

In today’s Web 2.0 world, sharing information is highly valued. You get attention, credibility and trust by “sharing” your organization’s knowledge. But, obviously, you also need to get paid. How to swing this? Read on for some ideas from Michael. -Mary Adams    2007