Early in February, the AUGI Board of Directors held one of its "face-to-face" meetings at Autodesk in the San Rafael, California, office. We had the privilege of meeting with Kelly Rupp, Autodesk's Director of Worldwide Sales. Kelly is arguably one of AUGI's most avid fans and champions within Autodesk. We discussed Autodesk strategy, AUGI strategy, how AUGI can support Autodesk in the development of community, and so on. We also discussed funding. Kelly made an interesting statement: "People value things that they pay for."

Is value related to price? Not entirely, but it does influence the value that we ascribe to something. Take a recent study on placebos that I heard on National Public Radio. The study found "that a drug's price has a significant effect on whether it works, even if it's just a sugar pill parading as a drug." Patients who were told they were taking an expensive drug got better quicker than those who were told they were taking a cheap drug. Consumers assumed that, because of their higher price, the drugs would have higher effect and higher benefit. And they did.

Normally, we take better care of something that we've paid more for or invested more in, proving that people value what they pay for. As Thomas Paine said, "What we obtain too cheap, we esteem too lightly." Those of you who are parents understand the balance that must be maintained between simply providing things for our children and teaching them the value of work. "Sweat equity," it is sometimes called.

And yet, we are surrounded by free stuff on the web. It is so prevalent, in fact. that in a Wired article entitled "Free! Why $0.00 Is the Future of Business," Chris Anderson said that "Free has emerged as a full-fledged economy. It is now clear that practically everything Web technology touches starts down the path to gratis." We use free search tools, free online storage, free email accounts, free virus software, and on and on. It costs us nothing, but it has great value.

The value of AUGI
So, how do we reconcile the concept that "people value what they pay for" with the fact that we are living in an increasingly "freeconomy?" If our perception of value is influenced by cost, what does this say about AUGI's value? How do you put a value on AUGI anyway? Do you value AUGI less because it is free to join? How would your ascribed value be affected if you had to pay to be a member?

Value is personal. As AUGI members, each of you value AUGI for different things: its information, solutions, learning resources, networking opportunities, friendships, etc. Our advertisers and sponsors value AUGI because they realize that "free offerings build audiences with distinct interests and expressed needs that (they) will pay to reach."

The price of AUGI
AUGI is free. Or is it? While you may not be exposed to inner financial workings of the organization, you most likely acknowledge that someone, somewhere is picking up the tab for support, maintenance, and expansion. But who?

AUGI receives subsidy (sponsorship) from Autodesk itself, some earmarked for special projects, some to cover general operating expenses. Solidvapor, AUGI's publishing and program management team, has also invested in AUGI initiatives where they saw potential. Other companies like HP and Compaq provide sponsorship monies for various programs such as AUGI HotNews, AUGI CAD Camp, and others. Advertising on the website has also provided some revenue. Certainly, Autodesk's subsidy has been foundational to AUGI's growth and success. But as AUGI grows, like a teenager growing up, we need to start finding ways to support ourselves.

Funding AUGI
It takes money to offer something for free! The Board has been exploring various options to supplement our existing subsidies.

One option is obviously to re-institute member fees. Some of you may remember back (pre-1999) when we had membership fees. If (and that’s a big “if”) we decided to go with this model, I’m sure that a few of you would immediately reach for your (or your company's) wallet because you realize that a small membership fee would be (and has been) offset by AUGI's value. While this would provide some useful financial resources to invest in the organization, one of the downsides would be the impact on community development within AUGI. Some existing members would fall away, in search of other free resources on the Web. Many visitors would be turned away by the cost of entry. Either way, community would be sacrificed, and this goes against one of the core benefits and values of AUGI.

While charging everyone dues may not happen, some variation on this theme may allow for expanded offerings. For example, we've discussed the possibility of providing some services that are fee-based. A number of sites offer a base service for free, with an optional "premium" offering that has expanded functionality. Wired’s Anderson calls it a “freemium” offering, an online environment where “for every user who pays for the premium version of the site, 99 others get the basic free version.”

For example, I use a free version of LogMeIn to connect to my home PC when I'm on the road. The free version works fine, but if I need additional features, I would need to pay to upgrade to the "pro" service. In the world of AUGI, overall membership would continue to be free in this model, but we could explore services that would be accessible for those willing to pay. These could be services for individual members or for corporations.

Another option is to begin to provide more advertising within the AUGI site. We are aware of the slippery slope that this can be. We've seen the same sites you have where advertising has gotten out of hand with animation, pop-ups, too many ads, etc. Even so, we've just accepted it on some sites because the value of the site's content offsets the visual congestion of the ads. The approach holds real potential for the organization, but we are committed to regulating it.

Keeping free, free
In retrospect, AUGI "going free" back in 1999 was quite progressive. At that time, Google, the “King of Free,” was just starting to make waves. Today, AUGI is still committed to free. At the same time, we want to be wise enough to capitalize on any revenue opportunities that do not conflict with the spirit of AUGI, and would allow us to keep offering great programs and services. In spite of its cost, free has significant value.

(Discuss this Article! in the HotNews Discussion Forums.)

Submitted by Chris Lindner, AUGI president. Chris has been an AutoCAD user/consultant/trainer/developer for more than 20 years and is a former AUGI Top DAUG winner. He serves as Director of CAD Technology for WD Partners. He can be reached at Chris.Lindner@augi.com.