I remember a McDonald billboard that says “The number that comes after FREE is $1.00″. Together with this text is the tempting and delicious 4 chicken nuggets.
However, this is totally different in the digital world. Chris Andreson, the editor in chief of Wired magazine, wrote an article “Free! Why $0.00 is the Future of Business“. In the digital world, the number that comes after FREE is still F-R-E-E.
The article outlines the reasons why FREE is the future of business:
1. Freemium: provide some free trials with limited functionality just to entice users to subscribe on the paid functionalities. (e.g. Flickr free account vs. Flickr premium account)
2. Advertising: free content and everything but money is generated from advertising.
3. Cross-subsidies: provide one thing free so that you can sell another thing related to this free stuff.
And many more can be found in the article.
What amazes me most is “FREE changes EVERYTHING”. The cost of bandwidth, storage, and processing power in the digital world is falling down to the FREE level because of Moore’s law. This changes how business is conducted in the digital world. We can see that while Google gives so many free (and great) applications they still prosper (through the Advertising). So, FREE is no more an anomaly in the digital world - it starts to become the norm. I guess in the near time, we should be thinking “How can I make my online business FREE?”.
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