Demaestro - 3:50 pm on Mar 1, 2011 (gmt 0)
the value is the content of the research itself that took many hundreds or thousands of man hours to compile thus defining it's value.
Sure but that only speaks to the cost of creating the original. What I am talking about is the cost of copying that original.
In your example, if it takes $1,000,000 to research and author a report, then that report is worth 1 million + a profit margin.
So we have 1 paper costing 1 million dollars.
Now if they copy that report, said copy doesn't add to the cost of creating the report. The cost was still 1 million, but now there are 2 papers costing 1 million dollars, you now have double the inventory but no extra cost.
So we have 2 papers costing 1 million dollars to create.
Now what happens when the report is copied 1 million times? There are now 1 million copies that cost 1 million dollars to make.
If the market is big enough and you can sell 1 million reports what are you charging? What is the value of 1 of the reports? Is it $1 + profit margin or $1 million + profit margin?
That is why I asked this:
Would you still be willing to pay thousands for something that can be copied for less then $0.01?
When you build a car you can't copy the car for almost no cost... the cost to copy is real and so the car has a real value.
Mrs Hocking has it right... Penny Profit.... Million Volume. Cut out the publishers who do nothing but create copies.