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 what’s best” Social Model “You know what’s 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 it’s going to be free
• You can’t stop free
• Understand that sooner or later you’re going to
be forced to compete with free in your industry
• Don’t forget free inevitably ends up making
some things more valuable
https://summaries.com/index/Free.pdf

15. http://fc06.deviantart.net/fs11/i/2006/184/7/e/Chocolate_lab_puppy_by_buddenbohn.jpg

16. http://coolspringsexpress.com/foodpix/Beverages-lg.jpg

18. Considerations
• Data
• Hardware
• Software

19. Total Cost of Ownership

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