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Free: How Today's Smartest Businesses Profit by Giving Something for Nothing, by Chris Anderson
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Review
"Anderson's timing couldn't be better. FREE arrives as whole swaths of the economy are having to contend with consumers finding ways--some illegal, many not--to go Free." (Boston Sunday Globe)"Chris Anderson's FREE unpacks a paradox of the online marketplace--people making money charging nothing. What was once just a marketing gimmick has morphed into the basis of a trillion-dollar economy." (Newsweek)"I'd put Anderson and his work on par with Malcolm Gladwell and Clayton M. Christensen as one of the more important pieces of business philosophy published in the emerging global, digital era." (Alan T. Saracevic, San Francisco Chronicle)
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About the Author
Chris Anderson is Editor-in-Chief of Wired magazine, a position he's held since 2001. In 2002 and 2004, he led the magazine to a 2002 National Magazine Awards nomination for General Excellence. He has worked at The Economist, where he served as U.S. Business Editor. His career began at the two premier science journals, Science and Nature, where he served in several editorial capacities. He holds a Bachelor of Science degree in Physics from George Washington University and studied Quantum Mechanics and Science Journalism at the University of California at Berkeley.
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Product details
Paperback: 304 pages
Publisher: Hyperion; 1 edition (April 20, 2010)
Language: English
ISBN-10: 140131032X
ASIN: B0043RT912
Product Dimensions:
5.2 x 8 inches
Shipping Weight: 9.6 ounces (View shipping rates and policies)
Average Customer Review:
4.0 out of 5 stars
212 customer reviews
Amazon Best Sellers Rank:
#258,055 in Books (See Top 100 in Books)
I have had this book awhile and, really kick myself for not reading it sooner. It is outstanding. Anderson is able to debunk all the chestnuts out there around free as well as spend the time to give you some history lessons on free. He also experimented with his own ideas on how to place the product out there for free using various methods he put forward. Very insightful stuff . I especially appreciated his 10 Rules of Free on pp 241 and the review of the range of conversion rates one can expect from freemium on pp 247. The key insight for me is his comment ( compressed and paraphrased by me) that:Price will fall to the marginal cost (in the digital bits case, free) unless the provider has a monopoly and/or enjoys the network effect such as Microsoft (Office docs) and Facebook. This supports a winner takes all effect, driving competitors to very low numbers. Facebook can not charge for new members because it has value in the network = linking new people all the time. So they will generate revenue from scale - losing with 99 % of the users and making it from a small % of ad revenue. ( or perhaps - selling stock!)I see that Guy Kawasaki and Tim Ferris both used ideas from Anderson in their recent promotions. Guy generated more "reputation" currency by offering free downloads of the Macintosh Way to people who "liked" his new book facebook page. Tim Ferris drove buys of the new 4 Hour Body , by offering a pdf of the 4 Hour Workweek to those who bought the new book. Tim drove his book to the top of Amazon very quickly = increased sales and reputation.This is the best treatment of free and freemium out there. If you buy this very readible book, read and digest it. It contains numerous money making ideas. Do not treat it lightly! You can get the audiobook still free at Chris' blog (long tail) :
Luego de trabajar sobre la teoría de la cola larga, Chris Anderson se puso de cabeza a escribir sobre el precio radical: cero.Aquí, Anderson estudia la psicología tras la palabra "gratuito" y analiza al menos cincuenta modelos que incorporan en su estrategia algún elemento sin costo (por lo menos para el usuario final).Ejemplos claros y abundantes hay en los espacios digitales. Las empresas de Internet están llevando sus costos cada vez más cerca de cero en gran medida gracias a la baja sostenida de los precios en almacenamiento y ancho de banda. Esto genera un modelo de negocios 80/20 en el cual el 20% de usuarios que pagan por el servicio Premium subsidian al 80% restante que lo usa gratuitamente. Si bien ese sistema es uno de los más conocidos, Anderson muestra muchas variantes como las ventas cruzadas o los experimentos de "pon tú el precio".Es importante destacar que si bien lo gratuito ha existido desde que tenemos memoria, las arenas digitales brindan muchas aristas para ser creativo y poder jugársela como lo ha hecho Radiohead o Nine Inch Nails quienes innovaron con el modelo "paga lo que quieras".Esto se fomenta con una nueva generación de menores de 30 años quienes crecimos entendiendo el significado de "gratuito" y aplicamos la misma noción como consumidor y productor de información. De ahí también aparece el tema de la piratería, el cual en algunos países alcanza cifras escandalosas (95% de la música en China es pirateada) y producto de eso, varias personas han decidido potenciar aristas paralelas del negocio, como entregar la música gratis, pro cobrar por conciertos, apariciones en vivo o merchandising.El libro es interesante puesto que no solo explica, ilustra e indaga en la historia, sino que esta plagado de casos prácticos en los cuales queda plasmado el poder de lo gratis, potenciado con un modelo de negocios que permite hacer dinero de otra forma.Ahora espero con ansias el tercer libro de Anderson, en el cual habla sobre como la cola larga de los bits pasa a ser la cola larga de los átomos. En otras palabras, como podremos saltarnos a las fábricas y empezar a hacer elementos físicos desde nuestra casa. Absolutamente imperdible.PEACE OUT
Chris Anderson's book Free: The Future of a Radical Price is a great book on how the progression of "free" items and information has changed the way we view business. Anderson points out to us that free is not a new concept and that our history is full of examples like the "free" Gillette razor blades to the "free" recipe book on the creativeness of Jell-O. According to Anderson, there are two types of people: people with time or people with money. The people with time tend to have less money and the people with money tend to have less time. Because of that, it's the people with money who are more than willing to pay for goods and services so the people with time can get it for "free." People with time can wait for a download or build things themselves, while people with money prefer the finished product. Anderson also points out that there are people who prefer, what he calls, the "atom" version of products (ex. you can download this entire book for free or pay for the hardcover). Psychologically, "free" is attractive because you can't go wrong with free because it's free. Anderson points to the argument of abundance versus scarcity. Traditionally, we tend to waste things that are abundant and conserve things that are scarce because that is how we are wired. But, with the information age and digital technology, things that were once considered scarce, are now abundant (Moore's Law). Overall, the book serves as a good assessment of how technology and "free" goods go hand in hand. Today's youth are desensitized to the conventional form of marketing so "free" offers a sample of a product that if it's acceptable, people will pay for the better product (ex. open source programs). The key is to give away things and use it as exposure while offering the better version as a paid service or product. For example, give away free music and if people like the product, they will go to the concerts/show and also buy the merchandising (which is the really money maker).
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