The Paradox of Free
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The Paradox of Free



Free is the prevailing business model of the online world, but this way of doing business is costing us too much.

Free is the prevailing business model of the online world, but this way of doing business is costing us too much.



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The Paradox of Free The Paradox of Free Presentation Transcript

  • THEPARADOXOF FREEImage by Nathan CongletonBy William Macfarlane
  • Free is the prevailingbusiness model of theonline worldImage by Thomas Hawk
  • Giving away services andsoftware is the fastest wayto build a large network ofusersImage by Elventear
  • And popularity is thecurrency of the webImage by Emanuele Rosso
  • The freeconomy motto:“Be the first to give awaywhat others charge for”Examples: CraiglistWikipediaSkypeImage by Piermario- Chris Anderson (Wired)
  • Ironically, the free businessmodel is making a lot of moneyEvernote, Twitter and Facebookare all free and worth over1 Billion USDImage by Johnny Vulkan
  • Consumers get things forfree and developers makemoney for their good workThis looks like awin-win situationImage by Eviloars
  • But, getting things for freecomes with a heavy priceImage by dalioPhoto
  • Like privacy
  • The price we pay for a “free”Facebook is the sale of ourpersonal information, used foruser-specific advertisingImage by Ian B. Line
  • "The only way to get aroundthe privacy problemsinherent in advertising-supported social networksis to pay for services thatwe value"Image by Frederic Poirot- Alexis Madrigal (The Atlantic)
  • Because “when the productis free, you are the product”- Ellis Hamburger (The Verge)Image by *L
  • There are also significantexpenses hidden inexternalities- the costs thataren’t reflected in priceImage by US Marine Corp
  • For example, the energyexpense of two googlesearches is approximatelythe same amount as boilinga kettle of waterImage by Benjamin Lehman
  • The total amount of googlesearches in 2011 was1,722,071,000,000Image by Benjamin Lehman
  • This environmental tax isthe price we pay forgoogle’s “free” serviceaImage by Agustan Ruiz
  • The freeconomy has alsobrought about seriouschallenges for the appworldImage by Pamhule
  • The price of our free appculture is software thatoften lacks accountabilityto those who use itImage by Hani Amir
  • Free apps are frequentlybought out by largecompanies, severing theapps relationship to itsusersExamples:OinkStampedPunchforkImage by Pascal Charest
  • "I really liked Punchfork, this sucks.It is a major pain to pull all of myinformation out. I don’t have the timetime to move all 231 Likes.”- TechCrunch commenter Kevin RankImage by dgies
  • There has been an out cryfrom developers that theonly way for a healthy appculture to exist is if morepeople pay and moredevelopers chargeImage by Dave Whitley
  • "Whether it’s in advertising,selling your data, or losingthe service altogether, I thinkusers are starting to see thecost of choosing free appsand services”Image by Stephen Geyer- Paul Mayne (Day One founder)
  • We all love free things, butmaybe this freeconomy isnot serving us as well asone where we paid a littlemoreImage by Mark Nye
  • “When the transaction isbetween you and the peoplewho made the thing you want,there is a great relationship - aresponsibility - that you dontget any other way"Image by Ed Ivanushkin- David Chartier(AgileBits)
  • The paradoxhere is thatfree is just tooexpensiveImage by Slayer925
  • Sources by Bethan
  • All images are licensedunder the CreativeCommons Non-CommercialShare-Alike 3.0 agreementand sourced from flickrImage by Cameron Russell