The word "free" in business makes owners shudder--there is no profit in free. I say it's time to rethink "free". Money losers today can bring in paying customers tomorrow if done right. As the economy evolves, the things we value comes more in bits (virtual) versus material (bricks). Bits cost virtually nothing to copy and distribute in comparison to material.
Since I'm a new mommy, the example I have in mind is Webkinz. They're popular with parents because their kids can go online and play with digital versions of their plush toys. The online experience must generate and emotional connection - so the creative still has to be right - but Webkinz uses this successful tool to sell their stuffed animals.
And then let's take Radiohead, the band. At first, I was very unsure of their strategy: they let fans download its album In Rainbows for whatever they thought it was worth. Of course, a lot of people paid zero, but the average sale price was $6. This definitely made me do a double-check of my initial reaction. Radiohead ended up taking a big risk and through downloads, the band made more money than any of its previous records. Crazy right?
Personally, I'm rethinking "free".
Monday, September 21, 2009
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