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Free doesn't work as a standalone business model, says Anderson
Submitted by Bhavesh from Google Reader
Feb 03, 2009


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Long Tail author and Wired editor in chief Chris Anderson explains why the "zero sum" model doesn't work alone in this economy—and teases his next book Free—in Saturday's Wall Street Journal. The argument: "free" wasn't enough before for all but a few and it's not going to work now without a pay component, whether it's "freemium"—"free as a form of marketing to put the product in the hands of the maximum number of people, converting just a small fraction to paying customers" or flat out charging for the bulk of goods and services. (The essay itself exemplifies "freemium"—free for anyone who wanders by WSJ.com, not just to those of us who pay to subscribe to the site's full content.) It works for the consumer, or as Anderson puts it, "It's a consumer's paradise: The web has become the biggest store in history and everything is 100% off." Of course, that's until the products they use disappear because the money isn't there. A couple of excerpts:

• "What about those companies trying to build a business on the Web? In the old days (that would be until September of

...Read the full article

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