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Free
                            or
                            Fee?

Geoff McDonald @IdeasMarketing #ideaslunch
Ideas Architect
       Book Rapper



Follow the conversation on Twitter: @ideasmarketing
?
Geoff McDonald @IdeasMarketing #ideaslunch
Part 1
Free You!




Geoff McDonald @IdeasMarketing #ideaslunch
Do you do free or fee?


Geoff McDonald @IdeasMarketing #ideaslunch
Our story...


Geoff McDonald @IdeasMarketing #ideaslunch
$$$
                                       High




                                 Low
                  Free
                            Relationship

The Ideas Marketing Curve : see previous webinars
Free is not new


Not new AND completely different!
Free is a multi-billion
              dollar industry


The Free Paradox
?
Geoff McDonald @IdeasMarketing #ideaslunch
Part 2
The Book




Geoff McDonald @IdeasMarketing #ideaslunch
Chris
                      Anderson


Chris 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 model


Geoff McDonald @IdeasMarketing #ideaslunch
Part 3
Digital Economics - a free guide




Geoff McDonald @IdeasMarketing #ideaslunch
Atoms and Bits



The New Economy
Abundance
           scimonocE

Economics = the social science of choice under scarcity
Atoms and Bits



Different games, different rules, different tactics.
Atoms and Bits




Atoms = Prices go up, Bits = Prices go down
Processing • Storage • Bandwidth


Costs approaching zero
Scarce                         Abundant




Geoff McDonald @IdeasMarketing #ideaslunch
Scarce                         Abundant

                 Shelf space




Geoff McDonald @IdeasMarketing #ideaslunch
The Long Tail




Book Rapper : Make Money From Niches
Scarce                         Abundant

                 Shelf space
                  Attention
                    Food

Geoff McDonald @IdeasMarketing #ideaslunch
Abundant                               Scarce
        FREE                                  FEE



Business Basics : Always was, always will be...
Bits                      Atoms
         FREE                        FEE



Geoff McDonald @IdeasMarketing #ideaslunch
Content                    Attention
       FREE                         FEE



Geoff McDonald @IdeasMarketing #ideaslunch
General                     Personal
       FREE                         FEE



Geoff McDonald @IdeasMarketing #ideaslunch
Information                  Experience
       FREE                        FEE



Geoff McDonald @IdeasMarketing #ideaslunch
What’s Scarce?
                     What’s Abundant?




Geoff McDonald @IdeasMarketing #ideaslunch
Part 4
Fours Frees




Geoff McDonald @IdeasMarketing #ideaslunch
➊ Direct
       Cross
    Subsidies




Four Ways to Be Free
➊ Direct          ➋ Three
       Cross           Party
    Subsidies          Subsidies




Four Ways to Be Free
➊ Direct          ➋ Three
       Cross           Party
    Subsidies          Subsidies




 ➌ Freemium




Four Ways to Be Free
➊ Direct          ➋ Three
       Cross           Party
    Subsidies          Subsidies




                       ➍ Non
 ➌ Freemium            Money
                       Payments




Four Ways to Be Free
Four Frees
➊ Direct Cross Subsidies




Geoff McDonald @IdeasMarketing #ideaslunch
One Pays For The Other


➊ Direct Cross Subsidies
Free Services, Fee Products


➊ Direct Cross Subsidies : Apple Genius Bar
Free Products, Fee Services


➊ Direct Cross Subsidies : Cheap phone, pay for calls
Free This, Fee That


➊ Direct Cross Subsidies : Free shipping from Book Depository
Free Entry, Fee Consumption


➊ Direct Cross Subsidies : Strip club
Free Consumption, Fee Entry


➊ Direct Cross Subsidies : Casino Shows
What’s your profit centre?


➊ Direct Cross Subsidies
Four Frees
➋ Three Party Subsidies




Geoff McDonald @IdeasMarketing #ideaslunch
Just the Free of Us!
➋ Three Party Subsidies
Content




                  Ads           Audience


                  Classic Media
➋ Three Party Subsidies
Hardware




                Music            Software


                          Apple
➋ Three Party Subsidies
Exhibits




               Children              Parents


                      Museums
➋ Three Party Subsidies
Content




               Referral             Traffic


             Affiliate Marketing
➋ Three Party Subsidies
Define Your Network


➋ Three Party Subsidies : Match buyers and sellers
Four Frees
➌ Freemium




Geoff McDonald @IdeasMarketing #ideaslunch
Most free, few fee
➌ Freemium = Free + Premium
Trial Period


➌ Freemium : Grow in value over Time?
Lite and Premium


➌ Freemium : Easy divide between Features?
One Free, More Fee


➌ Freemium : More Seats (Accounts) for a Pro?
Free Schools, Fee Business


➌ Freemium : Different Customer Types?
Free Time, Free Full


➌ Freemium : Similar Choices - Screenflow and Camtasia
Four Frees
➍ Non Money Payments




Geoff McDonald @IdeasMarketing #ideaslunch
Free   Fee




        What’s your currency?

➍ Non Money Payments
Help me, help you


➍ 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 5
What’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
                             Relationship

Create a Visual Marketing Plan : see previous webinars
Skip a
                                             week!




    Next Webinar
    Design Your Business Game


October 13th 12:30-1:15pm Facebook.com/IdeasMarketing
Next         Webinar

                  Which book?


October 27th 12:30-1:15pm Facebook.com/IdeasMarketing
Workshop: How to Design,
     Build and Sell Your Idea
Melbourne 14 October 8:30am - 5:00pm
$450 +GST
                              Ideas Hour


    Workshop: How to Design,
     Build and Sell Your Idea
More: IdeasMarketing.com.au/Workshops
$450 +GST
                              Ideas Hour


    Workshop: How to Design,
     Build and Sell Your Idea
More: IdeasMarketing.com.au/Workshops
IdeasMarketing.com.au/Webinars




Geoff@IdeasMarketing.com.au
NASA Curiosity Rover


To know and not do is not to know

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A Business Revolution: Free or Fee?

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