Exploiting the Internet for Entrepreneurs

What happens when the cost of software drops to zero?

As you can imagine we have our own ideas on this subject :-) but I would love to get others' ideas to add in the mix.

What's the user perspective? We're all using free software to some extent - even if it's just this forum?

What's the user perspective on totally new services that spring out of the Internet and get immediate traction, for no marketing spend, because they're free?

What's the business perspective on free software -
* mistrust, because it can't be any good if it's free,
* inertia because "we've already got something that works"
* technophobia "it must be complicated, because it's software"
* just plain fear because the world is changing while we watch

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Replies to This Discussion

Permalink Reply by Howard Larson on October 22, 2008 at 5:04pm: In the past I used a lot of freeware and still do if I can find a good program out there or a writer who has something out in beta form.

What I wont do is use a trial program, get all my data and way of working tied up with some program and then get hit with a bill because I then “need” it.

As for free? Just look to the right and have a peak at the little ads that people are paying for to let you buy from them.

If anything we dong go free or even low cost because we are lazy and let Microsoft do all the work, and judging from their prices and profit, make all the money; ▶ Reply to This

Permalink Reply by Steve Driscoll on October 22, 2008 at 6:15pm: A very interesting topic. As you know, implu had a paid subscription model of $99 for a Silver and $199 for a Gold account. We had an impossible time even giving it away! Why? Partly for the reason Howard suggested, partly because the question still remained. What is a subscription to implu worth? Some think $99 is too cheap, others think it too expensive. There were just too many perspectives.

Okay, so make it free. If you like it, stick around, if not then vaya con dios. There's huge precedence in this when you really think about it. More and more, hardware is getting cheaper but the services cost money. More and more, services are getting cheaper (if not free), you just have to put up with advertisers. Or, some of the juicy value add features cost money.

Here's an article on that which has some valid points (although I don't agree with it all.)

http://www.freeisnotabusinessmodel.com

Consider open source technology. Open source has some of the latest and greatest features that (sometimes) you can't even buy. You must accept it as free. So what costs money? The support packages. Why do you get more functionality for free? It's too costly to support! Ever heard of Ubuntu (Linux). My office has an old IBM T21 with Ubuntu installed. This is an old laptop with the latest open source linux that (together) creates a very powerful tool! My old dell (desktop) has the same. So I've turned two archaic pieces of hardware into a very powerful network....yep.....for free!

LinkedIn, Twitter, Ning, Digg, Technorati...free. Again, they make their money on advertising and premium corporate packages.

Okay, I could go on all day. I'm sure you get my point.

Regards,

Steve

Who do you implu?; ▶ Reply to This