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Free: What does that really mean?
           Learon Dalby
   Senior VP Business Solutions
                 2/25/2013

        NSGIC 2013 MIDYEAR MEETING
           February 24 - 28, 2013
           Loews Annapolis Hotel
     126 West Street, Annapolis, MD 21401
iTunes: Free

YouTube: Anderson overview

Amazon: $6.40

https://summaries.com/index/Free.pdf




CHRIS ANDERSON is the editor-in-chief of Wired magazine
Free: The Future of a Radical Price

      The new form of Free is based
   on the economics of bits, not atoms.
Free: The Future of a Radical Price

    The simple and undeniable fact is free is an
attractive price point. It will be the basis for many a
     business model in the future because the
  abundance of digital markets is a given, not an
                       option.
History Free: The Future of a Radical Price

                                                             Four basic business models of Free
                                                                Direct cross-subsidies
                                                                Three-party markets
                                                                Freemium
                                                                Non-monetary markets




   http://files.myopera.com/jdlien/blog/cross_subsidy.png
History Free: The Future of a Radical Price

                                                             Four basic business models of Free
                                                                Direct cross-subsidies
                                                                Three-party markets
                                                                Freemium
                                                                Non-monetary markets




   http://files.myopera.com/jdlien/blog/cross_subsidy.png
History Free: The Future of a Radical Price

                                                          Four basic business models of Free
                                                             Direct cross-subsidies
                                                             Three-party markets
                                                             Freemium
                                                             Non-monetary markets




   http://esportsbusiness.com/wp-content/uploads/2012/06/three-party.png
History Free: The Future of a Radical Price

                                                          Four basic business models of Free
                                                             Direct cross-subsidies
                                                             Three-party markets
                                                             Freemium
                                                             Non-monetary markets




   http://esportsbusiness.com/wp-content/uploads/2012/06/three-party.png
History Free: The Future of a Radical Price

                                                        Four basic business models of Free
                                                           Direct cross-subsidies
                                                           Three-party markets
                                                           Freemium
                                                           Non-monetary markets




   http://www.turinomia.es/wp-content/uploads/2011/10/modelo-freemium-turinomia.png
History Free: The Future of a Radical Price

                                                        Four basic business models of Free
                                                           Direct cross-subsidies
                                                           Three-party markets
                                                           Freemium
                                                           Non-monetary markets




   http://www.turinomia.es/wp-content/uploads/2011/10/modelo-freemium-turinomia.png
History Free: The Future of a Radical Price

                                                            Four basic business models of Free
                                                               Direct cross-subsidies
                                                               Three-party markets
                                                               Freemium
                                                               Non-monetary markets




   http://files.myopera.com/jdlien/blog/non-monetary.png
History Free: The Future of a Radical Price

                                                            Four basic business models of Free
                                                               Direct cross-subsidies
                                                               Three-party markets
                                                               Freemium
                                                               Non-monetary markets




   http://files.myopera.com/jdlien/blog/non-monetary.png
Freeconomics Free: The Future of a Radical Price
         Scarcity                                     Abundance

You have to get permission        Rules             Anything goes

 We know whats best        Social Model      You know whats best

     Business model               Profit         Figure it out as we go

        Top-down             Decision Process         Bottom-up

  Command and control         Management            Out of control
Free: The Future of a Radical Price
 If you make a digital product, realize sooner or
  later its going to be free

 You cant stop free

 Understand that sooner or later youre going to
  be forced to compete with free in your industry

 Dont forget free inevitably ends up making
  some things more valuable

        https://summaries.com/index/Free.pdf
http://fc06.deviantart.net/fs11/i/2006/184/7/e/Chocolate_lab_puppy_by_buddenbohn.jpg
http://coolspringsexpress.com/foodpix/Beverages-lg.jpg
20130225 nsgi cmidyear
Considerations
 Data
 Hardware
 Software
Total Cost of Ownership
Contact Information

        Learon Dalby
Senior VP Business Solutions
       @learondalby
   ldalby@sanborn.com

More Related Content

20130225 nsgi cmidyear

  • 1. Free: What does that really mean? Learon Dalby Senior VP Business Solutions 2/25/2013 NSGIC 2013 MIDYEAR MEETING February 24 - 28, 2013 Loews Annapolis Hotel 126 West Street, Annapolis, MD 21401
  • 2. iTunes: Free YouTube: Anderson overview Amazon: $6.40 https://summaries.com/index/Free.pdf CHRIS ANDERSON is the editor-in-chief of Wired magazine
  • 3. Free: The Future of a Radical Price The new form of Free is based on the economics of bits, not atoms.
  • 4. Free: The Future of a Radical Price The simple and undeniable fact is free is an attractive price point. It will be the basis for many a business model in the future because the abundance of digital markets is a given, not an option.
  • 5. History Free: The Future of a Radical Price Four basic business models of Free Direct cross-subsidies Three-party markets Freemium Non-monetary markets http://files.myopera.com/jdlien/blog/cross_subsidy.png
  • 6. History Free: The Future of a Radical Price Four basic business models of Free Direct cross-subsidies Three-party markets Freemium Non-monetary markets http://files.myopera.com/jdlien/blog/cross_subsidy.png
  • 7. History Free: The Future of a Radical Price Four basic business models of Free Direct cross-subsidies Three-party markets Freemium Non-monetary markets http://esportsbusiness.com/wp-content/uploads/2012/06/three-party.png
  • 8. History Free: The Future of a Radical Price Four basic business models of Free Direct cross-subsidies Three-party markets Freemium Non-monetary markets http://esportsbusiness.com/wp-content/uploads/2012/06/three-party.png
  • 9. History Free: The Future of a Radical Price Four basic business models of Free Direct cross-subsidies Three-party markets Freemium Non-monetary markets http://www.turinomia.es/wp-content/uploads/2011/10/modelo-freemium-turinomia.png
  • 10. History Free: The Future of a Radical Price Four basic business models of Free Direct cross-subsidies Three-party markets Freemium Non-monetary markets http://www.turinomia.es/wp-content/uploads/2011/10/modelo-freemium-turinomia.png
  • 11. History Free: The Future of a Radical Price Four basic business models of Free Direct cross-subsidies Three-party markets Freemium Non-monetary markets http://files.myopera.com/jdlien/blog/non-monetary.png
  • 12. History Free: The Future of a Radical Price Four basic business models of Free Direct cross-subsidies Three-party markets Freemium Non-monetary markets http://files.myopera.com/jdlien/blog/non-monetary.png
  • 13. Freeconomics Free: The Future of a Radical Price Scarcity Abundance You have to get permission Rules Anything goes We know whats best Social Model You know whats best Business model Profit Figure it out as we go Top-down Decision Process Bottom-up Command and control Management Out of control
  • 14. Free: The Future of a Radical Price If you make a digital product, realize sooner or later its going to be free You cant stop free Understand that sooner or later youre going to be forced to compete with free in your industry Dont forget free inevitably ends up making some things more valuable https://summaries.com/index/Free.pdf
  • 19. Total Cost of Ownership
  • 20. Contact Information Learon Dalby Senior VP Business Solutions @learondalby ldalby@sanborn.com