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Thursday, July 28, 2011

International Entrepreneurship - Freemium

 This is a very popular practice, phenomenon in the internet age.  Everybody expects many things to be free.  Free is taken for granted.  The idea of free comes from Chris Anderson. (He is also the author of the Long Tail) When he launched the book, he gave away free copies.  The internet is complete with examples of the free.  Slideshare, photobucket, Flickr. Gmail, Yahoo.mail, FB are all free.

This being free take place because the cost of storage in chips, has gone to almost zero.  Computer performance, based on Moores law really increased and cost of transistors which are integrated in tiny chips is practically nil That is why many computer, IT companies can offer FREE.

In the 20th century, free is 5% and the rest is paid.  Thus you have coupons, discounts, free samples and other stuff.  In the 2lst century, it the reverse,  5% of the total events are ;paid, the rest 95% is free.  The guys who pay, pay Premium, hence the word FREEMIUM.  Those who pay the premium can pay for the cost of the 95% plus some profit.  Take note that email is free, but there is advertisement all around, and that is where the revenues come in.  Newspapers are also supposed to be example of freemium.  The newspapers cost is paid for by advertisers.  (That is the idea of Pulitzer)  The first copy if gravy for the publisher.  That is why newspaper companies will struggle to get your subscription even if it is expensive to deliver that paper to you



"Every generation needs a revolution an ENTREPRENEURIAL REVOLUTION."

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