What is a free business model?
Free business model is an economic theory that suggests that money can be earned by the product is gone. For many years, this theory has been strictly used as a promotional technique, but at a digital age it has evolved into a serious business model. Companies that give free access and information such as online newspapers create a flow of income by other means. In many cases, this model will succeed, but there is misunderstandings and problems with the development of a business model.
The free business model has roots in marketing promotional promotional years. In the past, giving away a sample or experiment, such as a free bottle of detergent in the e -mail, a way to get the product in the hands of consumers to gain popularity. However, the products did not remain free of charge, as consumers were expected to eventually buy the item.
This free commercial model has evolved at a digital age when the idea of providing a service or information gone for nothing happened forThroughout. Now products and information could be distributed for nothing like music or news. Some companies have developed a business model plan that distributed its products for free. The aim was to draw viewers and users with free content to expose them to advertised products.
An example of a free business model would be online newspaper. In the past, consumers have bought newspapers in physical form to read messages. At digital age, online messages were easily accessible, newspapers began to offer free content. In order to subsidize money lost from physical sale, they operated online papers of digital advertising such as species in physical paper. The newspapers under these types of business models in fact distributed the primary product for nothing for nothing and developed income from other sources.
Content distribution worked newspapers, TV shows, some music and other products. This mouseHowever, Lenka does not work for all industries and must be thoroughly planned before performing. The name "free business model" is slightly misleading, because there are always costs such as hiring content creators, server operation, and even expectations that customers have to own a computer. For these reasons, this business model may be the main risk that the company thinks that there are no costs to distribute products.