need, thanks very much.’ For others, they’ll see that your ideas clearly have
application, but you haven’t gotten into the details that they really need.
Then that turns into a speaking engagement or a book purchase.”
Anderson acknowledges that many speakers choose not to give away
anything, or don’t have anything that can be easily given away. “I wouldn’t
presume to say that my model works for everyone everywhere. But every
speaker has to admit that, in a market where people are distributing ideas
and content for free, it has an impact on you, whether you like it or not.
If you have a fantastic idea that you can’t really share, I suspect you will
struggle in a marketplace that has so many ideas freely propagating.”
In;the;final;analysis,;Anderson;says;that;it;comes;down;to;your;belief
in your core, premium product, whether that is speeches, books or
something else entirely. “If that still has value, you should not fear the free
form, because it’s marketing the premium form,” he says. “You still need
to do a good job of making people aware there is a premium form and
why they might prefer it. But the two are not in opposition.”
Born (and Raised) Free
While the book Free launched in July, the topic of free has been
interwoven in Anderson’s experience for decades. “I certainly didn’t
invent free,” he says. “And for the type of free that we’re talking about,
you need to consider that the Web is now 20 years old. So really, the
book came out of my own experience of free, rather than the other
way around.”
“Giving away
content allows
people to
participate and
think about
how your
ideas might
apply to their
own business.”
Category
Method
Example
Freemium
(some customers subsidize others)
Give away Web content, sell printed content
Magazines, books
Give away generic management advice, sell
customized management advice
McKinsey
Three-party markets
(one customer class subsidizes another)
Direct cross-subsidy
(standard giveaway)
Give away “snippets,” sell books
Give away content, sell access to the
audience
Give away content, make money by referring
people to retailers
Give away content, sell stuff
Free with purchase
Buy one, get one free
Free shipping for orders over $25
Authors using Google Book
Search
Ad-supported media
Amazon Associates
Slashdot/ThinkGeek
Retail “loss leaders”
Supermarket