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Free vs. Paid Business Models: The Hidden Role of Engineers as Marketers
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.
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.
11.
By nature, new demand (P2=0; Q2=maximum value)
is not visible before: a) product release and b) awareness
12.
Product 1:
90% market share
Priced at P1>0
Product 2:
10% market share
Priced at P2>0
P1 P2
13.
Commercial markets Mind share markets
Product 3 appears, priced at
P3=0
P1 P2 P3
New commercial market
14.
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
15.
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)