The document discusses various business model patterns and free business models. It provides examples of the long tail model, which focuses on selling a large number of niche products at low volumes, and freemium models, which provide a basic product for free with paid upgrades. Google is used as an example of a company that started services based on whether people wanted them rather than initial profitability, generating revenue through advertising. The document also discusses how non-paying customers in a free business model are financed through other customer segments or parts of the business.
4. Business
models
Earning
Distribution
(Co-)creation
User
model
models
models
models
Subscription
Bait and hook
Tupperware
Online sales
Mass-effect
model
Mass
customization
model
model
model
Freemium
Package
Clicks & bricks
Franchise
Open source
Community
model
deal
model
model
model
model
Service
Advertising
Labeling
Multi-channel
Multi-sided
model
model
model
model
User-generated
content
Auction based
Brokerage
Affiliate
Open business
model
model
model
model
Yield
model
Unbundeled
Insurance
models
model
platform
Long tail
management
model
Sources: Interactieve marketing, Businessmodellen, Business model generation
5. assignment
-look at the business model patterns on the screen
-make an overview of the Google products
-write down which business model patterns Google uses
the most
6. Business
models
Earning
Distribution
(Co-)creation
User
model
models
models
models
Subscription
Bait and hook
Tupperware
Online sales
Mass-effect
model
Mass
customization
model
model
model
Freemium
Package
Clicks & bricks
Franchise
Open source
Community
model
deal
model
model
model
model
Service
Advertising
Labeling
Multi-channel
Multi-sided
model
model
model
model
User-generated
content
Auction based
Brokerage
Affiliate
Open business
model
model
model
model
Yield
model
Unbundeled
Insurance
models
model
platform
Long tail
management
model
Sources: Interactieve marketing, Businessmodellen, Business model generation
7. so..
-sometimes it’s hard to find out the
differences between patterns… -an
organization always uses different patterns
at the same time…
-organizations are constantly changing there
strategy that’s why they always develop new
patterns
8. this week
Long tail model, free as a business model,
business model design, customer segments,
empathy map
13. the long tail model..
Long tail models are about selling a lower
volume of a greater amount of different
products.
The long tail focuses on selling a large amount of
niche products.
All together these sales are equally profitable as
the traditional model which makes use of a
small number of bestselling products.
14.
15.
16.
17. 1. what
products do you get for
free?
2. what can you get for free
online?
3. what should be free
(online)???
18. ‘free’ as a business model..
Free got started in the twentieth century by companies
giving away something that spurred purchases of related
goods. Gillette razors is an example.
Free in the bits economy, however, can be really Free.
In 1996 the Village Voice became a free newspaper. Since it
no longer charged, people perceived that it had a lesser
quality. Another paper, The Onion, started Free and stayed
Free, and is a much bigger success. This shows that our
feelings about Free are relative, not absolute.
(Chris Anderson)
19. ‘free’ as a business model..
At places like Google, new services start with questions like
“Would it be cool?”, “Do people want it?” or “Does it use
technology well?” rather than “Will it make money?”
In Google’s case, they first invented a way to do
search that gets better as the Web gets bigger. They then
allowed advertisers to create ads that matched keywords or
content and bid against each other for the most prominent
positions. They then created other products to extend their
reach and only attached ads when it made sense. (Chris Anderson)
20. (2) the freemium model..
When using the freemium model the product is
given away for free. A better version of the
product is only accessible after buying an
updated version.
There are also freemium models used that have
a connection with annoying advertising. After a
paid update you don’t get this advertising
anymore.
21.
22.
23.
24. ‘free’ as a business model..
In the FREE business model at least one substantial
Customer segment is able to continuously benefit from
a free-of-charge offer. Different patterns make the free
offer possible.
Non-paying customers are financed by another part of
the business model or by another Customer Segment.
(Business model generation)
(so ask yourself.. who IS going to pay??)