Hunter and Associates: Stories We Noticed 2007-07-17
Posted on July 17, 2007
Filed Under Links |
“But it’s not all about advertising. It turns out that free is a great way to get people’s attention and then sell them other things. The model, christened freemium by US VC Fred Wilson, works by offering a limited service for nothing in the hope that customers get hooked and start paying for other bells and whistles. It’s practically an industry standard for some types of online software providers. And the reason is very simple. If you aren’t free, you aren’t visible online, which these days is almost the same as not existing.
“Another area where free is the only way to go is if you are trying to create some kind of network where the more people who join the better things get. Skype knew this and gave away the product for free to successfully attract 100 million users and create a business for which eBay was happy to pay $4.1bn.”
“Ed Burnette in a few paragraphs has made the perfect historical, definitive illustration of the power of free software on the free Web, and he points out that WP made money on the sidelines, so everybody won, and keeps on winning yet.”
Maxims for the Network Economy – Quotes from New Rules for the New Economy (1998)
“In the network economy the more plentiful things become, the more valuable they become.”
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