Free Will Get You Business!!

March 17, 2008

Type the word “FREE” into google search engine and in (0.22) seconds you will have about 3,810,000,000 results for FREE.

FREE = $0

After my reading to Free! Why $0.00 Is the Future of Business By Chris Anderson I think it is a great interesting study, though very long article, or set of articles! Also, Chris Anderson did not mention GNU/Linux in his article!!
Many companies use Gillette’s business model today to create demand for their goods. Clothing shops offer you a free shirt with your purchase of one (Buy 1 and get the 2nd for FREE). Give away the cell phone, sell the monthly plan take Telus a cellular phone provider as an example they are giving away a Samsung u410 cell phone FREE on a 3 year contract. The phone cost $199.99 with no contract!

Here are some of the points that Chris makes:

Once a marketing gimmick, free has emerged as a full-fledged economy. Offering free music proved successful for Radiohead, and bands on MySpace. The fastest growing parts of the gaming industry are ad-supported online gaming and free trial multi-player online games. Virtually everything Google does is free to consumers, from Gmail to Picasa to GOOG-411.

The rise of “freeconomics” is being driven by the underlying technologies that power the Web. Just as Moore’s law dictates that a unit of processing power halves in price every 18 months, the price of bandwidth and storage is dropping even faster. The trend lines that determine the cost of doing business online all point the same way: to zero.

It is now clear that practically everything Web technology touches starts down the path to gratis, at least as far as weconsumers are concerned. Storage now joins bandwidth YouTube = FREE and processing power Google = FREE in the race to the bottom. Basic economics tells us that in a competitive market, price falls to the marginal cost. There’s never been a more competitive market than the Internet, and every day the marginal cost of digital information comes closer to nothing.

The result:

Two trends driving the spread of free business models across the economy.

1. Technology is giving companies greater flexibility in how broadly they can define their markets, allowing them more freedom to give away products or services to one set of customers while selling to another set.

2. Anything that touches digital networks quickly feels the effect of falling costs.

Chris goes on to list six business models of the “Free” Business Models:

  1. “Freemium”What’s free: Web software and services, some content. Free to whom: users of the basic version.
  2. Advertising – What’s free: content, services, software, and more. Free to whom: everyone.
  3. Cross-subsidiesWhat’s free: any product that entices you to pay for something else. Free to whom: everyone willing to pay eventually, one way or another.
  4. Zero marginal cost – What’s free: things that can be distributed without an appreciable cost to anyone. Free to whom: everyone.
  5. Labor exchange – What’s free: Web sites and services. Free to whom: all users, since the act of using these sites and services actually creates something of value.
  6. Gift economy – What’s free: the whole enchilada, be it open source software or user-generated content. Free to whom: everyone.

FREE shipping on almost everything you buy:
There is a website it enables you to search Amazon and eBay for items that have FREE shipping.

The Giveaway of the day project, is a new website in the software distribution world. Everyday they offer a FREE licensed software. The idea behind this initiative is that many sites and publishers offer trial downloads; but only Giveaway of the day offer giveaway downloads. What does that mean? Basically, every day Giveaway of the day nominate one software title that will be a Giveaway title of that day. The software will be available for download for 24 hours (or more, if agreed by software publisher) and that software will be absolutely free registered and legal version for Giveaway of the day visitors. The download link will remain on Giveaway of the day for the agreed period of time, in addition to the review of the software product and the information about other products from the software publisher presenting the giveaway title. Giveaway of the day pay the software publisher for the Giveaway license, and our visitors will only receive those after downloading a special verification program and agreeing to the Terms and Conditions, thus protecting software publishers’ interests and making our initiative beneficial for both clients and publishing companies.

what happens when you giveaway stuff for FREE

Taxonomy of Free:

  • Freemium: Flickr is free, but you pay for Flickr Pro
  • Advertising: Google is free, but with ads
  • Cross-Subsidies: cell minutes are free, but you pay for voice-mail
  • Zero Marginal Cost: online music is free, because cost of distribution is almost zero
  • Labor Exchange: like Digg, using the site itself creates value
  • Gift-Economy: Wikipedia and parts of craiglist, truly free without ads.
  • Skype – basic in network voice is free, out of network calling is a premium service
  • Flickr – a handful of pictures a month is free, heavy users convert to Pro
  • Trillian – the basic service is free, but there is paid version that is full featured
  • Newsgator – the web reader is free. If you want to synch with outlook and your mobile phone, that’s a paid service
  • – you get 1gb of virtual storage for free, but you have to pay for more than that
  • Webroot – you can get a free spyware scan, but for full protection you need to pay

A friend of my recently purchase a new car (Volkswagen) where the car dealership sold him the car FREE for the first four months, I was amazed!

That reminds of the ad-wrapped car you drive the car FREE and at the same time you advertsiting or marketing a product for the company. Companies looking for people to drive ad-wrapped cars typically use a special service dealing exclusively with wrapping their vehicles. These businesses manage the list of potential drivers and match these people up with the right companies. For you, that means these ad-wrapped businesses want to know how often you drive in a week, how many miles you generally drive, how many locations your car is parked at and also how many hours your car is parked at these locations.

You can almost can anything for FREE !!

I was interested to know how how Open Source Software like Sun Microsystems? The answer is through training, consulting, and support services.

Question to my classmates and Chris Anderson, will universities ever considering education for FREE?


3 Responses to “Free Will Get You Business!!”

  1. imrankha Says:

    Universities will be free, only if such modern advertising methods existed..Check the video below!

    Jokes part, i doubt it.

  2. wattsy Says:

    Free will definitley get you business. Consumers all like the concept of free products, free services etc.. Free samples get the consumer to try the product out, and if they like it they will more than likely buy the product. I really like free shipping. Sometimes when I get clothes online I will order the amount to get the free shipping. Shipping costs can really add up too.
    Free education would be really nice. It’s hard to say if it will ever be free, I doubt it well though.

  3. Tasia Says:

    Mellaz, you always have the best graphics!!! They get the point across so well !

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