With the Internet, an entirely new form of consumption is created.
The expectation that you get everything for nothing, is particularly strongly pronounced at younger audiences and influenced many areas of the development of new business models.
Many traditional business models in the field of information and services no longer work on the Internet.
How you can still earn money?
Not everything that we see commonly known as free is actually free.
Some versions of “Free” are:
completely free of charge
Other costs may include hobby software projects, Wikipedia, ad-free blogs etc. really
make people realize something in your spare time, and do it themselves for their own gratification.
, it is often in the software field so that the software is free, but the support is costly. This works sometimes very, very good.
These are indirect costs. I have to watch advertising.
is financing the other a product. Monetization is shifted to other products or to a later date (by winning market share).
This shows that actually only very few offers are really free. And just in the business sector, of course, no one has anything to give.
The question now is how to establish itself as a company or self-employed in the “Free Culture” is a business model.
Is it all new?
Even if you currently have the feeling that the issue of “free” is a new phenomenon, which was originated from the Internet, but there is this much longer.
It was in 1895 as a Mr. Gillette was thinking about how he could succeed in the tough competitive situation. One day he got the idea, instead of the usual razor to develop replaceable razor blades.
In the following years he tried everything possible to bring its products to the man. Even if the idea was brilliant, he sold the first year just a few hundred razor.
After many marketing activities, he got the idea to give away the razor itself (or very, very favorable leave) and to only sell the razor blades.
The result was that millions of men had a razor blade and now needed.
There were many such examples then it heaps and many companies have made this business model to own.
Phones you can get for free, you only pay for the services, etc.
are set up free coffee machines in companies and you earn on consumption.
The business model of “free” is not new. It has reached to the Internet a new dimension. While it was still pretty well predictable and controllable with physical products, digital products, it is quite another matter.
Without production and distribution costs, it is much easier to publish digital products for free. And so it is on the Internet more difficult to implement the Gillette model.
That had to learn as Netscape in the mid-Neuziger the software world revolutionized by give away their browser. Unfortunately the business model (a special software for companies to sell, which was tailored to the Netscape browser) does not occur because other free software also subsequently released and no longer wanted to pay for it.
It raises the question of how in the Internet era, despite the many, many free information make money.
There is no real business model “for free”
As we have already seen above in the variants, there is no real business model “for free”. Companies have to give away anything, the bottom line.
So to compete with those who earn no money, must needs be you think of something special.
Let’s take this first look at the disadvantages of free information:
If something is free, it is often arbitrary. Although you can be happy about free information, but it combines often have no value. Many people associate physical goods with costs. Music CD may cost a bit, as an MP3 file you want the music to proceed.
If something is free, it may not be very good. Of course one can not generalize that. But many authors are perceived as competent, as as blog authors. At least in more traditional target groups.
Many startups are free today only out to gain market share and then to be bought. This works but unfortunately only in a minority.
There are success stories, the individual companies, bands, artists, etc show that with free “products” were successful. This only works, if only part of it so powerful. If all the bands would provide their music for free, the model would not work anymore. And even today, not every band that puts their music on MySpace in, successfully.
The problem that arises as us, then, is that free information and products are indeed taken very happy and find a wide spread, but that hardly anyone is willing to pay for these things later money.
This means, conversely, that can be “free” only be a part of our strategy. So the question is not how I can be successful with free products, but how can I use free products to sell my paid products and services.
Benefits of paid information to the mass of free information
Even though here in the blog readers to write again and again that it’s all free and they are never for information / would pay for products, that is only half the truth.
The following list of possible benefits of a paid product show in many ways also drawbacks to the free.
The information in a textbook are usually well grouped, sorted, and build on each other. Information about search engine optimization can be found on the Internet heaps. But mostly it’s only articles on individual aspects that will also vary with age and thus the news.
The presentation of non-free products is often better. I already miss every now and again a beautiful and informative booklet, if I download a new album on iTunes.
On the spot quality can certainly be discussed. However, one often gets but a better quality (in various areas such as content, structure, spelling, etc.) for fee-based products, services and information.
It takes quite a long time, until you have searched the Internet certain information together. Especially for beginners in a matter of time saving point is often an important one. And then you pay too much.
The availability of digital products is such a thing. Especially with timeless information you want to access it later from time to time. And because it’s easier to take up a book or, for example to go to his member area and there are the collected information to have. The specific information to search again on Google is usually expensive and not always crowned with success.
Paid Products and information often offer additional support.
If a service or information does cost something, then it also ensures a certain exclusivity. And at least for part of the target group is reason enough money to put it.
These benefits may not be sufficient for each of you to lie for money. But that must not be.
For the basic philosophy of the business model of “free” is: Free products provide coverage, which you can then use to sell to a part of this group then paid-quality products.
That’s the real secret behind this business model, and the answer to the question “Everything on the net for free? How to make money anyway! “.
For example, uses one free content
There are many examples of this business model.
For example, Microsoft and Adobe have long been a tolerated piracy of their software products, as it has achieved such a large market penetration. Photoshop, for example, is the de facto standard in image processing has become.
Today many young Photoshop and then when they come into company, you already have a lot of experience with Photoshop and the companies then buy this software.
Firefox sells its browser free of charge, but millions deserves it. How? Google pays a lot of money so that as the default search engine in Firefox, Google is just set.
With Runes of Magic a free role-playing game was released, which has cost much money in development. To get through the game faster, but you can buy in game items if you wish.
The Wall Street Journal provides the bulk of its content for free. Only a small, but very exclusive part is further charged and also at a fairly high price.
Many experts publish high-quality content on the Web, but you will earn money with consulting or lecture.
So it would be conceivable, for example, that a blogger converts a freemium business model. Part of the content he publishes free, as the article of a thematic series. Additional information in the form of video, audio, checklists, cost, etc., but a one-hour consultation peso money.
You could also offer the same information in different variations, the cost will also vary a lot:
1) individual coaching
2) as the course fee including support
3) fee-based eBook + Audio + Video
4) Basic information as a free PDF download ()
Who wants to have a personal care, who pays the most. And so on.
You could also stagger time information. Who wants to have some information immediately, which must pay for it. I have seen only recently in a blog for financial information. Who stocks and shares news would have been early at 7 clock, which had to pay for it. They were then aged 12 clock for free.
Or you are so much of its products, for free, so that the user already binds and are willing to pay for the rest. In an online billing service, up to 10 invoices per month be free. If you need more, then who pays for it.
It is important here:
Free dates are those whose costs are relatively low for me (so just offer information to digital products). So about that anyway as I’m self-employed.
I have as a customer, who is renovating stairs. He also sells reasonably priced and provides the necessary material for the guide and tips online at its Web site. It could even renovate their customers including stairs, only to the material costs.
But he gets a lot of orders. Why? Many think only: “I can do myself.” But the manual shows them then, but that it probably should make a pro. Quality and time savings here are the reason that people are willing to pay more money.
There is a very complex issue, which will remain in the exciting years ahead.
And I also know that there will be enough people who are thinking now “I pay still not info that I find on the web.” But especially in the B2B sector companies are often willing to put money, even if the necessary information in Web is free.
It also depends very much on the target group.
“Everything for free” is certainly not the future, even if one or the other predicts that.
The mass of free information has become so powerful that costs may also act to regulate and clean up.