The Wired.com article starts this way:
Monster.com founder Jeff Taylor helped you find a job, and helped ease you into middle age. Now he wants to help you build the last web page you’ll ever need.
It goes on to describe Tributes.com, a new website that just launched, that lets users search a database of obits from over 70 years of newspapers. The site also allows visitors to set up memorial pages and leave condolences.
In effect, they’re going after Legacy.com and other sites which offer similar services.
It’s got smart people and lots of money behind it, so why won’t it work? Here’s the quote that got my attention:
“We are building a channel to the funeral industry to build our site with them, so we can be an aggregator for all the obituaries,” said John Heald, a funeral director who is working with Tributes.com.
Tributes plans to sell its service to funeral homes that will then package an online tribute with the other services offered to the bereaved. Obits will stay up indefinitely, while condolences may come down after five to 10 years.
Jeff Taylor is a smart guy, and the folks giving him advice have lots experience in the business, but they’ve all overlooked a HUGE problem: funeral directors aren’t buying new products to add to the other services they already offer to consumers.
If anything, funeral directors are looking to cut non-essential items so that the price of their basic service isn’t overly-distorted by rising fuel costs and other economic factors.
Before the 2007 NFDA Convention, I discussed this “just add it to the final bill” attitude in the post, Why Funeral Homes Don’t Give Away Free Stuff.
In that post, I explained that such a business model will fail. Many other established industry companies are seeing how this works, including our friends at Respectance.com. Here’s what they had to say in a recent blog post on their site:
Funeral home directors are using the internet to buy supplies, you read about it every day, you have national conferences that tell you how your clients are wired. So why don’t you get it? Why do we have to keep banging our heads against a wall just to get you to see, hear and feel? Customers are asking for it, we’re telling you people want it. Listen up!
Later in the post, our friend Richard Derks implores his readers:
It’s time for the funeral homes to put their client’s needs first. It is not only about greenbacks. We at Respectance are listening. We are offering our site and expertise to you FREE to pass it on as a value added service to your clients.
If a site like Respectance, which offers free service, can’t get funeral directors to pay attention, how is Tributes.com going to find takers for a pay service?
If you read the full article, you’ll notice that the company is starting with $4.3 million in capital. How many other, more worthy ventures could have been started with that kinda cash? Side note: Respectance recently garnered another started with $1.5 million. Reference: VentureBeat.
And while there’s lots of money being thrown around in an attempt to be THE PLACE for online memorials, funeral directors aren’t even paying attention.
No, my Magic 8 Ball isn’t very accurate, but I think that Tributes.com will have to transition to a free service and make their money with ad sales within 18 months. Anyone wanna bet against me?
June 9, 2008 at 12:02 pm
Tim – I don’t think anyone is going to disagree with you on this one. You are right on the money – they will have to revise the business model here, as you note.
June 10, 2008 at 7:00 am
Tim,
This is round 2 for Jeff and “tributes”. He rolled this out to several funeral groups a few years ago under his “eons” site and it failed there, so now they’re trying under it’s own site “Tributes”. The concept makes sense. One place, nationwide, to check for obits. The challenge is, as small as the world is getting, for the most part we are still hometown people. And the way we read obits is we open the paper and scan them over to see who died. We aren’t looking for a specific name, we’re looking for a name we might know. So how do you do that nationwide? I don’t want to scan every death that happened yesterday. I’d need to narrow the list down by location. And if the list is incomplete then it’s no good to me. So unless they can get every paper and/or every funeral home on board it’s not an option for me. Obits cost the family on average over $300.00 in our area. The Local paper requires us to pay an addition fee on each obit to fund it’s participation in Legacy, the other huge obit web site, so the obits show up on their web site. Plus we post everything on our web site. I guess if “tributes” could buy out Legacy, cut deals with the 15 major funeral home web site hosts, and offer free service to the funeral homes then it might work.
June 10, 2008 at 11:42 am
I just love this topic! Speaking from experience as a vender and as a funeral home owner – this business model in my opinion simply won’t work. Back in the early 2000’s I participated in a delightful start up company call Lifefiles. Anyone remember that company? Lifefiles had many good things going for it, in terms of enabling the public to leave thoughts and memories, as well as preserving photos and even has a simple guest book component for families to sign, rather than leave a memory. One of the value propositions that this was built on was that funeral homes would pay for this to be added to their existing website, if there was no website, they could have Lifefiles also build their site. Well- long story short – funeral home owners like the product, however even with all the bells and whistles, the majority if the funeral homes were reluctant to yet package one more additional cost into their all ready consumer friendly packages. Lifefiles also have visions of being a centralized place much like Jeff’s thought for consumers to go to for national obits. With the the M-Live’s and Legacy’s of the world, let alone their own strife with technology – funeral home owners elected not to go that direction.
Jeff Taylor is a brilliant and innovative individual,(I had the opportunity to visit with him personally) – in his niche. His niche is not funerals. Yes, he changed the face of how people look for a career, and even made what was the standard of job hunting obsolete. Funeral service is a different animal and his customer base…the funeral director / industry is not looking to add to their already high overhead, they are looking to lower it.
Yes – a national achieve would be great, but realistically, even if it was free, I doubt you would find funeral home owners participating.
June 10, 2008 at 12:19 pm
Dale:
You hit the nail on the head…
“we open the paper and scan them over to see who died.”
You really can’t say more than that!
Thomas
http://www.colorsofhonor.com
June 13, 2008 at 8:56 am
Thanks Tim,
I understand your point and decided to write something on this. (though the facts you give about Respectance are not totally correct) http://blog.respectance.com/2008/06/13/time-to-embrace-new-ideas/
I believe that what you write about has to do with change and authenticity. You know that when I did all communication for KaZaA, the music industry really did not embrace us. The people did however. So I have been in this position before.
Your arguments are totally right from an industry point of view. But I for one, dare to claim that the industry is not always the best to know what their clients need. They might indeed be more concerned with their way of running a business, than with listening and researching the market.
In the end (!), some will embrace us, and these people and companies will be the leaders of tomorrow. Otherwise, there would never have been Starbucks, iPods and wii.
Keep following us, we are coming up with some nice market developments soon. I will surely keep following your blog, the best in the industry.
June 13, 2008 at 11:09 am
[...] Reading, What in the World Wide Web? The article I wrote about Tributes.com, titled Serious Money is Coming to Online Obits. And Why it Won’t Work., has generated a lot of discussion lately. I’d like to share my own thoughts on the words [...]
June 18, 2008 at 10:24 am
Being involved with a website memorial charity called http://www.muchloved.com which is purely about bereavement support rather than making profits it is pretty staggering to see the serious money now coming in to online obits.
MuchLoved is slightly unique in many ways with an emphasis on privacy, grieving and with no commercial adverts or add-ons. However it will not have the resources to ‘compete’ with multi-million dollar investments.
I am sure there is room for both profit and non for profit organisations to appeal to different types of people, however can an agreed set of general standards be agreed on? MuchLoved initiated a code of conduct last year called http://www.thememorialcode.org and I wonder whether the new big money companies
would be willing to join up to ensure that
the bereaved families stay central to all future developments in online obits.
June 11, 2009 at 8:03 am
[...] questions continue about monetization of websites. One of my fellow blogger’s Tim at Final Embrace is questioning the entire wisdom of online memorial sites. New competition in the form of Tributes [...]