July 3rd, 2009 - 7 Comments
Free has it’s place, keep it there.
Chris Anderson wrote an interesting article about Free being the future of business for Wired Magazine in 2008, and made a lot of interesting points.
He has now published a book called Free (The Future of a Radical Price: The Economics of Abundance and Why Zero Pricing Is Changing the Face of Business). The book is not free, it’s about €18.99 as pointed out in Malcolm Gladwell’s review of the book.
Gladwell is another thought provoking writer and it is worth reading Anderson’s original article, then read the review and then for laughs read a third thought provoking author’s view on it from Seth Godin.
For the record? All three authors have interesting points to make but (admittedly without having read the book) I like Gladwell’s analysis best.
Books of this type like to put forward black and white theories on how things are, how things will be or how things should be done. Gladwell too may be guilty of this in his own books, but he speaks the truth here:
The only iron law here is the one too obvious to write a book about, which is that the digital age has so transformed the ways in which things are made and sold that there are no iron laws.
There will always be a place for free. But on the internet some tend to assume free is a right, but we should be mindful of being bullied into being free without a solid plan in place to actually generate revenue.
That said, I look forward to reading the book as a thought provoker.
This entry was posted on Friday, July 3rd, 2009 at 1:31 am and is filed under Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
7 Responses to “Free has it’s place, keep it there.”
Hi Frank,
It’s a fascinating topic.
I’m not sure that whether something should or shouldn’t be the case is the core point though; whether we want it or not, or whether it suits us or not (as musicians, artists, writers), the ‘free’ economy will exist in different forms.
As far as I can see, any product or service that has a digitised element is vulnerable to the forces of the free economy. Our main concern should be “how can we position what we do for maximum effect in this economy?”. This may not be an easy question to answer.
A lot of the work I do has established ‘norms’ regarding pricing, with many in the business saying that the market will perceive the value of the service by the level of the pricing. The logical extension of that argument is that a free service has no value.
Funnily enough, I see a link on Twitter today to a free audio version of Anderson’s book. Maybe this is an example of how a free distribution of the audio may drive further sales of the paper version?
Aodan
[...] Many people have engaged with this concept in the blogosphere. Frank Prendergast and I explored what the idea means for us. [...]
July 31st, 2009 at 8:39 pm by Is ‘free’ a viable business model? | Smarter Egg
I just finished reading FREE last night. A good read, I like Anderson’s style. Of most value is the section at the back where he pulls apart various objections to free. When you’ve read the pages preceding, you will be nodding your head in brainwashed adoration!
Notable comments imho from Anderson was his take on the current economic climate and how build it, raise money, build massive banks of users, and then sell at a premium days are over. Today Free must be matched with Paid. We must invent not just products that people love but ones that they will pay for. Therein lies the challenge! ;-)





Hi Frank,
I think you’ve extracted a sharp insight there from Gladwell regarding the lack of iron laws. In an evolving economy, all we have are trends and progressions (and unexpected events); certainty tends to be elusive.
Have you read ‘What Would Google Do?’ by Jeff Jarvis? He kicks around the ‘free as a business model’ concept and we have used this book to great effect in our learning groups. More and more people are looking for ways to integrate some level of ‘free’ service into their business.
Aodan
July 3rd, 2009 at 9:37 am by Aodan Enright