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Free                            or                            Fee?Geoff McDonald @IdeasMarketing #ideaslunch
Ideas Architect       Book RapperFollow the conversation on Twitter: @ideasmarketing
?Geoff McDonald @IdeasMarketing #ideaslunch
Part 1Free You!Geoff McDonald @IdeasMarketing #ideaslunch
Do you do free or fee?Geoff McDonald @IdeasMarketing #ideaslunch
Our story...Geoff McDonald @IdeasMarketing #ideaslunch
$$$                                       High                                 Low                  Free                  ...
Free is not newNot new AND completely different!
Free is a multi-billion              dollar industryThe Free Paradox
?Geoff McDonald @IdeasMarketing #ideaslunch
Part 2The BookGeoff McDonald @IdeasMarketing #ideaslunch
Chris                      AndersonChris Anderson • @chr1sa • diydrones.com/
Chris Anderson • @chr1sa • On Ted, not Ted
Chris Anderson • @chr1sa • On Ted, not Ted
Chris Anderson • @chr1sa • On Ted, not Ted
Chris Anderson • @chr1sa • diydrones.com/
Free is a new economic modelGeoff McDonald @IdeasMarketing #ideaslunch
Part 3Digital Economics - a free guideGeoff McDonald @IdeasMarketing #ideaslunch
Atoms and BitsThe New Economy
Abundance           scimonocEEconomics = the social science of choice under scarcity
Atoms and BitsDifferent games, different rules, different tactics.
Atoms and BitsAtoms = Prices go up, Bits = Prices go down
Processing • Storage • BandwidthCosts approaching zero
Scarce                         AbundantGeoff McDonald @IdeasMarketing #ideaslunch
Scarce                         Abundant                 Shelf spaceGeoff McDonald @IdeasMarketing #ideaslunch
The Long TailBook Rapper : Make Money From Niches
Scarce                         Abundant                 Shelf space                  Attention                    FoodGeoff...
Abundant                               Scarce        FREE                                  FEEBusiness Basics : Always was...
Bits                      Atoms         FREE                        FEEGeoff McDonald @IdeasMarketing #ideaslunch
Content                    Attention       FREE                         FEEGeoff McDonald @IdeasMarketing #ideaslunch
General                     Personal       FREE                         FEEGeoff McDonald @IdeasMarketing #ideaslunch
Information                  Experience       FREE                        FEEGeoff McDonald @IdeasMarketing #ideaslunch
What’s Scarce?                     What’s Abundant?Geoff McDonald @IdeasMarketing #ideaslunch
Part 4Fours FreesGeoff McDonald @IdeasMarketing #ideaslunch
➊ Direct       Cross    SubsidiesFour Ways to Be Free
➊ Direct          ➋ Three       Cross           Party    Subsidies          SubsidiesFour Ways to Be Free
➊ Direct          ➋ Three       Cross           Party    Subsidies          Subsidies ➌ FreemiumFour Ways to Be Free
➊ Direct          ➋ Three       Cross           Party    Subsidies          Subsidies                       ➍ Non ➌ Freemi...
Four Frees➊ Direct Cross SubsidiesGeoff McDonald @IdeasMarketing #ideaslunch
One Pays For The Other➊ Direct Cross Subsidies
Free Services, Fee Products➊ Direct Cross Subsidies : Apple Genius Bar
Free Products, Fee Services➊ Direct Cross Subsidies : Cheap phone, pay for calls
Free This, Fee That➊ Direct Cross Subsidies : Free shipping from Book Depository
Free Entry, Fee Consumption➊ Direct Cross Subsidies : Strip club
Free Consumption, Fee Entry➊ Direct Cross Subsidies : Casino Shows
What’s your profit centre?➊ Direct Cross Subsidies
Four Frees➋ Three Party SubsidiesGeoff McDonald @IdeasMarketing #ideaslunch
Just the Free of Us!➋ Three Party Subsidies
Content                  Ads           Audience                  Classic Media➋ Three Party Subsidies
Hardware                Music            Software                          Apple➋ Three Party Subsidies
Exhibits               Children              Parents                      Museums➋ Three Party Subsidies
Content               Referral             Traffic             Affiliate Marketing➋ Three Party Subsidies
Define Your Network➋ Three Party Subsidies : Match buyers and sellers
Four Frees➌ FreemiumGeoff McDonald @IdeasMarketing #ideaslunch
Most free, few fee➌ Freemium = Free + Premium
Trial Period➌ Freemium : Grow in value over Time?
Lite and Premium➌ Freemium : Easy divide between Features?
One Free, More Fee➌ Freemium : More Seats (Accounts) for a Pro?
Free Schools, Fee Business➌ Freemium : Different Customer Types?
Free Time, Free Full➌ Freemium : Similar Choices - Screenflow and Camtasia
Four Frees➍ Non Money PaymentsGeoff McDonald @IdeasMarketing #ideaslunch
Free   Fee        What’s your currency?➍ Non Money Payments
Help me, help you➍ Non Money Payments : Exchange your labour
➍ Non Money Payments : Boost your reputation
Promoting Piracy?➍ Non Money Payments : Build your audience
Donate or not...➍ Non Money Payments : Feel good about your contribution
What are you really selling?➍ Non Money Payments : Google does search to sell ads
?Geoff McDonald @IdeasMarketing #ideaslunch
Part 5What’s Next?Geoff McDonald @IdeasMarketing #ideaslunch
What’s your free?Geoff McDonald @IdeasMarketing #ideaslunch
Read this!http://www.wired.com/techbiz/it/magazine/16-03/ff_free?currentPage=all
Buy the book!Chris Anderson : Free
And this book!bookrapper.com/Issues/Book_Rapper_Money_Niches.pdf
$$$                                        High                                  Low                   Free               ...
Skip a                                             week!    Next Webinar    Design Your Business GameOctober 13th 12:30-1:...
Next         Webinar                  Which book?October 27th 12:30-1:15pm Facebook.com/IdeasMarketing
Workshop: How to Design,     Build and Sell Your IdeaMelbourne 14 October 8:30am - 5:00pm
$450 +GST                              Ideas Hour    Workshop: How to Design,     Build and Sell Your IdeaMore: IdeasMarke...
$450 +GST                              Ideas Hour    Workshop: How to Design,     Build and Sell Your IdeaMore: IdeasMarke...
IdeasMarketing.com.au/WebinarsGeoff@IdeasMarketing.com.au
NASA Curiosity RoverTo know and not do is not to know
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A Business Revolution: Free or Fee?

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Slides from our Book Rapper webinar as derived from Chris Anderson's Free. Learn (1) why the 'new' Free is unlike any previous Free and (2) how to apply it to your business.

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  • Transcript of "A Business Revolution: Free or Fee?"

    1. 1. Free or Fee?Geoff McDonald @IdeasMarketing #ideaslunch
    2. 2. Ideas Architect Book RapperFollow the conversation on Twitter: @ideasmarketing
    3. 3. ?Geoff McDonald @IdeasMarketing #ideaslunch
    4. 4. Part 1Free You!Geoff McDonald @IdeasMarketing #ideaslunch
    5. 5. Do you do free or fee?Geoff McDonald @IdeasMarketing #ideaslunch
    6. 6. Our story...Geoff McDonald @IdeasMarketing #ideaslunch
    7. 7. $$$ High Low Free RelationshipThe Ideas Marketing Curve : see previous webinars
    8. 8. Free is not newNot new AND completely different!
    9. 9. Free is a multi-billion dollar industryThe Free Paradox
    10. 10. ?Geoff McDonald @IdeasMarketing #ideaslunch
    11. 11. Part 2The BookGeoff McDonald @IdeasMarketing #ideaslunch
    12. 12. Chris AndersonChris Anderson • @chr1sa • diydrones.com/
    13. 13. Chris Anderson • @chr1sa • On Ted, not Ted
    14. 14. Chris Anderson • @chr1sa • On Ted, not Ted
    15. 15. Chris Anderson • @chr1sa • On Ted, not Ted
    16. 16. Chris Anderson • @chr1sa • diydrones.com/
    17. 17. Free is a new economic modelGeoff McDonald @IdeasMarketing #ideaslunch
    18. 18. Part 3Digital Economics - a free guideGeoff McDonald @IdeasMarketing #ideaslunch
    19. 19. Atoms and BitsThe New Economy
    20. 20. Abundance scimonocEEconomics = the social science of choice under scarcity
    21. 21. Atoms and BitsDifferent games, different rules, different tactics.
    22. 22. Atoms and BitsAtoms = Prices go up, Bits = Prices go down
    23. 23. Processing • Storage • BandwidthCosts approaching zero
    24. 24. Scarce AbundantGeoff McDonald @IdeasMarketing #ideaslunch
    25. 25. Scarce Abundant Shelf spaceGeoff McDonald @IdeasMarketing #ideaslunch
    26. 26. The Long TailBook Rapper : Make Money From Niches
    27. 27. Scarce Abundant Shelf space Attention FoodGeoff McDonald @IdeasMarketing #ideaslunch
    28. 28. Abundant Scarce FREE FEEBusiness Basics : Always was, always will be...
    29. 29. Bits Atoms FREE FEEGeoff McDonald @IdeasMarketing #ideaslunch
    30. 30. Content Attention FREE FEEGeoff McDonald @IdeasMarketing #ideaslunch
    31. 31. General Personal FREE FEEGeoff McDonald @IdeasMarketing #ideaslunch
    32. 32. Information Experience FREE FEEGeoff McDonald @IdeasMarketing #ideaslunch
    33. 33. What’s Scarce? What’s Abundant?Geoff McDonald @IdeasMarketing #ideaslunch
    34. 34. Part 4Fours FreesGeoff McDonald @IdeasMarketing #ideaslunch
    35. 35. ➊ Direct Cross SubsidiesFour Ways to Be Free
    36. 36. ➊ Direct ➋ Three Cross Party Subsidies SubsidiesFour Ways to Be Free
    37. 37. ➊ Direct ➋ Three Cross Party Subsidies Subsidies ➌ FreemiumFour Ways to Be Free
    38. 38. ➊ Direct ➋ Three Cross Party Subsidies Subsidies ➍ Non ➌ Freemium Money PaymentsFour Ways to Be Free
    39. 39. Four Frees➊ Direct Cross SubsidiesGeoff McDonald @IdeasMarketing #ideaslunch
    40. 40. One Pays For The Other➊ Direct Cross Subsidies
    41. 41. Free Services, Fee Products➊ Direct Cross Subsidies : Apple Genius Bar
    42. 42. Free Products, Fee Services➊ Direct Cross Subsidies : Cheap phone, pay for calls
    43. 43. Free This, Fee That➊ Direct Cross Subsidies : Free shipping from Book Depository
    44. 44. Free Entry, Fee Consumption➊ Direct Cross Subsidies : Strip club
    45. 45. Free Consumption, Fee Entry➊ Direct Cross Subsidies : Casino Shows
    46. 46. What’s your profit centre?➊ Direct Cross Subsidies
    47. 47. Four Frees➋ Three Party SubsidiesGeoff McDonald @IdeasMarketing #ideaslunch
    48. 48. Just the Free of Us!➋ Three Party Subsidies
    49. 49. Content Ads Audience Classic Media➋ Three Party Subsidies
    50. 50. Hardware Music Software Apple➋ Three Party Subsidies
    51. 51. Exhibits Children Parents Museums➋ Three Party Subsidies
    52. 52. Content Referral Traffic Affiliate Marketing➋ Three Party Subsidies
    53. 53. Define Your Network➋ Three Party Subsidies : Match buyers and sellers
    54. 54. Four Frees➌ FreemiumGeoff McDonald @IdeasMarketing #ideaslunch
    55. 55. Most free, few fee➌ Freemium = Free + Premium
    56. 56. Trial Period➌ Freemium : Grow in value over Time?
    57. 57. Lite and Premium➌ Freemium : Easy divide between Features?
    58. 58. One Free, More Fee➌ Freemium : More Seats (Accounts) for a Pro?
    59. 59. Free Schools, Fee Business➌ Freemium : Different Customer Types?
    60. 60. Free Time, Free Full➌ Freemium : Similar Choices - Screenflow and Camtasia
    61. 61. Four Frees➍ Non Money PaymentsGeoff McDonald @IdeasMarketing #ideaslunch
    62. 62. Free Fee What’s your currency?➍ Non Money Payments
    63. 63. Help me, help you➍ Non Money Payments : Exchange your labour
    64. 64. ➍ Non Money Payments : Boost your reputation
    65. 65. Promoting Piracy?➍ Non Money Payments : Build your audience
    66. 66. Donate or not...➍ Non Money Payments : Feel good about your contribution
    67. 67. What are you really selling?➍ Non Money Payments : Google does search to sell ads
    68. 68. ?Geoff McDonald @IdeasMarketing #ideaslunch
    69. 69. Part 5What’s Next?Geoff McDonald @IdeasMarketing #ideaslunch
    70. 70. What’s your free?Geoff McDonald @IdeasMarketing #ideaslunch
    71. 71. Read this!http://www.wired.com/techbiz/it/magazine/16-03/ff_free?currentPage=all
    72. 72. Buy the book!Chris Anderson : Free
    73. 73. And this book!bookrapper.com/Issues/Book_Rapper_Money_Niches.pdf
    74. 74. $$$ High Low Free RelationshipCreate a Visual Marketing Plan : see previous webinars
    75. 75. Skip a week! Next Webinar Design Your Business GameOctober 13th 12:30-1:15pm Facebook.com/IdeasMarketing
    76. 76. Next Webinar Which book?October 27th 12:30-1:15pm Facebook.com/IdeasMarketing
    77. 77. Workshop: How to Design, Build and Sell Your IdeaMelbourne 14 October 8:30am - 5:00pm
    78. 78. $450 +GST Ideas Hour Workshop: How to Design, Build and Sell Your IdeaMore: IdeasMarketing.com.au/Workshops
    79. 79. $450 +GST Ideas Hour Workshop: How to Design, Build and Sell Your IdeaMore: IdeasMarketing.com.au/Workshops
    80. 80. IdeasMarketing.com.au/WebinarsGeoff@IdeasMarketing.com.au
    81. 81. NASA Curiosity RoverTo know and not do is not to know
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