
Interesting discussion by Erik Sherman of BNET (with some real-life business cases included) about Chris Anderson’s book Freemium. Anderson has created major buzz in recent months with his “give freebies of your product to drive adoption” thesis. Anderson explores how advancements in computer technology, specifically the low-low price of computerized data storage, has changed the flow of information and data, ultimately changing the rules of data-based business.
Take a few minutes and do a search on the topic, and you can easily get sucked into the discussion. While the topic really only applies to Internet-based business, and not brick and mortar (imagine giving away say, a single donut to any taker, with the hope of making real money by charging for orders of a dozen or more), it remains a fascinating idea, that ultimately will always be in flux. Why flux? Well, every business model and goal is just that different from another. Add to the equation the fact that the Internet and data-driven business is in a constant state of evolution (not to mention competitive pressure), and you realize that a freemium campaign that’s effective in 2009 may not be so in 2010. Bottom lining it: Anderson’s theories cannot be ignored, especially in the recessionary landscape of ‘09, where business is looking for ways to squeeze every last cent out of their operating expenses.



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