a business revolution: free or fee?

Geoff McDonald @IdeasMarketing #ideaslunch

FreeorFee?

Ideas ArchitectBook Rapper

Follow the conversation on Twitter: @ideasmarketing

?Geoff McDonald @IdeasMarketing #ideaslunch

Free You!Part 1



Do you do free or fee?


Our story...

$$$

Free

Relationship

Low

High

The Ideas Marketing Curve : see previous webinars

Not new AND completely different!

Free is not new

The Free Paradox

Free is a multi-billion dollar industry

The BookPart 2


Chris Anderson • @chr1sa • diydrones.com/

Chris Anderson

Chris Anderson • @chr1sa • On Ted, not Ted

Chris Anderson • @chr1sa • diydrones.com/


Free is a new economic model

Digital Economics - a free guide


Part 3

The New Economy

Atoms and Bits

Economics = the social science of choice under scarcity

AbundanceEconomics

Different games, different rules, different tactics.

Atoms and Bits

Atoms = Prices go up, Bits = Prices go down

Atoms and Bits

Costs approaching zero

Processing • Storage • Bandwidth


Scarce Abundant


Scarce Abundant

Shelf space

Book Rapper : Make Money From Niches

The Long Tail


Scarce Abundant

Shelf spaceAttention

Food

AbundantFREE

ScarceFEE

Business Basics : Always was, always will be...

BitsFREE

AtomsFEE


ContentFREE

AttentionFEE


GeneralFREE

PersonalFEE


InformationFREE

ExperienceFEE



What’s Scarce?What’s Abundant?

Fours Frees


Part 4

Four Ways to Be Free

➊ Direct Cross

Subsidies


➊ Direct Cross

Subsidies

➋ Three Party Subsidies


➌ Freemium

➊ Direct Cross

Subsidies



➌ Freemium

➊ Direct Cross

Subsidies


➍ Non MoneyPayments

➊ Direct Cross Subsidies


Four Frees

One Pays For The Other


Free Services, Fee Products

➊ Direct Cross Subsidies : Apple Genius Bar

Free Products, Fee Services

➊ Direct Cross Subsidies : Cheap phone, pay for calls

Free This, Fee That

➊ Direct Cross Subsidies : Free shipping from Book Depository

Free Entry, Fee Consumption

➊ Direct Cross Subsidies : Strip club

➊ Direct Cross Subsidies : Casino Shows

Free Consumption, Fee Entry


What’s your profit centre?



Four Frees

Just the Free of Us!


Classic Media


Content

AudienceAds

Apple


Hardware

SoftwareMusic

Museums


Exhibits

ParentsChildren

Affiliate Marketing


Content

TrafficReferral

Define Your Network

➋ Three Party Subsidies : Match buyers and sellers

➌ Freemium


Four Frees

➌ Freemium = Free + Premium

Most free, few fee

➌ Freemium : Grow in value over Time?

Trial Period

➌ Freemium : Easy divide between Features?

Lite and Premium

➌ Freemium : More Seats (Accounts) for a Pro?

One Free, More Fee

➌ Freemium : Different Customer Types?

Free Schools, Fee Business

➌ Freemium : Similar Choices - Screenflow and Camtasia

Free Time, Free Full

➍ Non Money Payments


Four Frees

➍ Non Money Payments

What’s your currency?

Free Fee

➍ Non Money Payments : Exchange your labour

Help me, help you

➍ Non Money Payments : Boost your reputation

➍ Non Money Payments : Build your audience

Promoting Piracy?

➍ Non Money Payments : Feel good about your contribution

Donate or not...

➍ Non Money Payments : Google does search to sell ads

What are you really selling?

What’s Next?Part 5



What’s your free?

http://www.wired.com/techbiz/it/magazine/16-03/ff_free?currentPage=all

Read this!



Chris Anderson : Free

Buy the book!

bookrapper.com/Issues/Book_Rapper_Money_Niches.pdf

And this book!

http://www.bookrapper.com/Issues/Book_Rapper_Money_Niches.pdf

http://www.bookrapper.com/Issues/Book_Rapper_Money_Niches.pdf

$$$

Free

Relationship

Low

High

Create a Visual Marketing Plan : see previous webinars

October 13th 12:30-1:15pm Facebook.com/IdeasMarketing

Skip a week!

Design Your Business GameNext Webinar

October 27th 12:30-1:15pm Facebook.com/IdeasMarketing

Which book?Next Webinar

Melbourne 14 October 8:30am - 5:00pm

Workshop: How to Design, Build and Sell Your Idea

More: IdeasMarketing.com.au/Workshops

Workshop: How to Design, Build and Sell Your Idea

$450 +GST

Ideas Hour

[email protected]

IdeasMarketing.com.au/Webinars

To know and not do is not to know

NASA Curiosity Rover