Submitted by Group NDebrup | Dhruv | Piyush | RichaShivam | Sumit | Tanmay | Yatin

Book ReviewFREE THE FUTURE

OF A RADICAL PRICE

Presentation Title

The History of free – and why it has such power

Four basic business models

of free

Direct cross-subsidies

FreemiumNon-monetary

markets

Three-party markets

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Freeconomics – how and why free works and What it does

•Producer gives the Consumer free product 1 to entice the Consumer subsequentlyfor product 2

•Producer gives the consumer free product 1 free-of-charge but advertisers pay to be included

•Free version is made available to anyone in this hope some users will then premium version

•People gift or give things and expects future payments

Four Basic Business model of free

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How digital electronics has revolutionized free

• Most of the products are not free

• Digital markets are an exception

• The three drivers of today’s

digital economy

• Computer processing power

• Digital storage technologies

• Bandwidth

• Example- Google

Information

• Customized information• specific and tailored to

your requirements• will go up in marginal cost

• Commodity information• Everybody gets the same

version• Marginal cost will go down

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Freeconomics – how and why free works and What it does

Scarcity Abundance

You have to get

permission

Rues Anything goes

“We know what’s best” Social model “You know what’s best”

Business model Profit plan Figure it out as we go

Top-down Decision process Bottom-up

Command and control Management Out of control

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The Power of Brazillian Street Vendors

• Emergence of Banda

Calypso

• Merck and the Swiss

firm Roche vs Brazil

Government

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Channel Knockoff Economy

• Obsession towards

Pirated products

• Piracy Paradox – by

Christopher Sprigman

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Rules for success in and abundance economy

• Make a digital product free

• Don’t forget the price of physical goods will also decline

• You can’t stop free

• You certainly can make money from free

• Be prepared to redefine your market

• Round down sooner rather than later

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Rules for success in and abundance economy

• Understand that sooner or later you’re going to be forced to complete

with free in your industry

• Embrace waste rather than trying to eliminate waste all the time

• Don’t forget free inevitably ends up making somethings more valuable

• Manage for abundance

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