All of these Web 2.0 technologies are available to everyone for a great price: free! But how can companies provide these services for so little? Some sites get you excited about the free services then introduce you to other services that cost money, usually a nominal fee.
The combination of free services and paid services is explained in an interesting interview with Chris Anderson, editor in chief of Wired magazine, I heard on "Fresh Air." He wrote a book titled Free: The Future of a Radical Price where he talks about how these hosting sites are able to use free services as marketing. This excerpt tells how the Jell-O brand used this concept in the early 1900s. This is an example of how harboring the hive can actually earn money. You can listen to the entire interview, about 30 minutes, as well.
About Me
- Eirin
- I am 34 years old. I live in Tallahassee, Florida, my hometown. I enjoy spending time with my family and friends and stay busy working full time while going to graduate school.
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It was a really interesting interview, Eirin. I listed to most of the 30 minute interview.
ReplyDeleteInteresting that Anderson talks about the emergency of "Freemium" -- a small minority paying for the majority's use of something online (an updated model of the "free sample" to get people to sample first and then to purchase the higher premium services/tools that require a fee). Anderson cites the Wall Street Journal's website (free, except if you want to get into the archives, those require payment) as an example, though he mentions that he's not sure every newspaper could do that.
To quote the old song, I guess everything old is new again, huh?
Maybe we can introduce a new term here, a "financial lurker." Following you now on Twitter!
ReplyDeleteSherri - I am so glad that you enjoyed the interview. I was suprised when I heard it on the radio because I had been reading about the same ideas in Bruns book. Definitely shows you that while the technology changes the marketing, the principles behind the strategies stay the same.
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