Microsoft Engineering Forum 2011. This presentation includes the central points of my book The Mind Share Market https://www.amazon.com/Mind-Share-Market-Economics-Abundance-ebook/dp/B004V549XY/, covering two-sided platforms, multi-sided markets, freemium and tying business models.

2. Nicolas Pujol
Investor, advisor, author of The Mind Share Market

3. Google: $160B
Skype: $8.5B
Apple: $320B
Facebook: $55B?
$0

4. Before
Now
After

5. Non-monetary transactions

6. Gift economics
Barter exchange

7. 井

9. 1
Reference: Federal Trade Commission Guide 251.1 on the use of the word “free” in commerce

10. Source: http://web.mit.edu/ariely/www/MIT/Papers/zero.pdf, expanded in The Mind Share Market

11. Classic marketing: Productive marketing:
Ad is a message The product is the ad
P=0 P=0
P>0
Commercial transaction

12. The opacity problem of market shares

13. By nature, new demand (P2=0; Q2=maximum value)
is not visible before: a) product release and b) awareness

14. Product 1:
90% market share
Priced at P1>0
Product 2:
10% market share
Priced at P2>0
P1 P2

15. Commercial markets Mind share markets
Product 3 appears, priced at
P3=0
P1 P2 P3
New commercial market

16. Downloadable software SaaS Higher education
(digitization of bricks and mortar)
Telephony Physical product trials Healthcare? Insurance?
Productive marketing: Producing value to customers before a commercial transaction occurs
The product is the ad, and affordable to everyone

17. 1. Two-sided platform: Different categories of users
Ad-funded models, video games, shopping malls, credit cards
2. Freemium: Same category of users
Sub-categories to upsell
(Semi-applicable: Tying)—“It’s free if you pay”
More info: Scholarly papers on www.SSRN.com (technical) or The Mind Share Market (illustrated)

19. Conventional marketing Productive marketing

21. The subtractive future and what you can do

22. Price gaps will be filled
Address pent-up demand, upfront
If customers want freedom…
Strains don’t belong (nuances)

23. Maximizes market share and profit, even in the absence of competition
(Parker, Van Alstyne)
Will solve other problems

24. info@nicolaspujol.com