Free models

Today is a Free day! Alex Osterwalder posted his book chunk about Free as a Business Model on the Hub. What is actually a free business model? As Alex describes it is a “business model where at least one customer segment is able to continuously benefit from a free offer. It usually financed by another part of the business model or another customer segment.” The chunk describes great examples on Advertising (Metro), Freemium (Flickr, Skype, Insurance!) and the Bait and Hook model. You can find out more on our Business Model Hub. At the moment we are working with more than 350 members from 44 countries and we have 10 more chunks to go…

Peter Froberg – one of our members on the Hub – from Denmark introduced a great example on a Free Business Model: Freemium on his blog: Flat World Knowledge. Actually a model that looks interesting. Something we would have loved when we were students. Look at the movie of Flat World Knowledge. (sorry, I could not plug it in here).

But what is free actually? Free does not represent any value, does it? Nothing is for free… In the end someone has to pay… Either the client (a segment) or the advertiser or the government.


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