Happy Independent's Day

Steve Rubel's comments on free-agents ruining the larger analysts' party:

Charlene Li, an influential Forrester analyst who tracks digital trends, blogged that she is leaving the research firm to go independent. Some believe that the growing ranks of free-agent analysts may spell trouble for traditional research firms.

The reality is that many of the tools that workers need to do their jobs are becoming free or low cost. This extends into verticals as well. For example the Google Ad Planner, which launched last week, theoretically could allow anyone to become a nomadic media planner.

Digital Nomads are growing in numbers and they will create ripples.

We resemble that remark - after backgrounds in consultancy and digital broadband media we set up Broadsight 3 years ago as a 21st century business - virtual, very light footprint on the ground - because we could! In 2005 you could already get, via the Web, access to the sort of data that a few years before required large in-house research departments and/or copious analysts reports. Four years ago being web workers was much harder, as many of the tools, from wifi, wifi PC's, software etc were unavailable. Now they are near ubiquitous. Thus, our "buy" side has seen a massive reduction in cost and increase in efficiency.

That same revolution expanded our sell side as well - via the company website, this blog, and other social networks we have a massively magnified reach compared to the % increase the Analytics companies have achieved. We happen to believe we know our sector as well, if not better than (m)any of them, and can afford to be more independent as well.

A typical Analysts report sells for $'000. We wrote one on Online Advertising last year because we were actually doing work in the space and thus felt we knew more than any analysts did, it sells for about 1/2 the price and we have sold a healthy number of them, but our costs are probably far lower so margins are probably comparable.

At the other end, the market for 4 pager briefings for $100 or so is probably also under severe threat when you can just put a few good bloggers in that field together. Because the data is now so much more readily available, its much simpler for a smart person who knows the industry well to spend a bit of quality time on the Web, Linked In and Excel and get the 80/20 of the Analysts job done.

Steve's point on recessions driving trends - especially where there is economic advantage - also resonated:

Recessions often accelerate social shifts that are already percolating under the surface. One of the key trends I have been watching is the growing number of Digital Nomads.

Its simple Coasian Economics - as transaction costs come down, the size of the firm required to deliver a service reduces. I've yet to see an analyst's report say that about their own industry though

PS I liked Steve's title so I sto.. I mean adapted it