Freeconomics !
Here's a great read from "wired" magazine about the economics of "FREE !"
" For years, webmail users had to pay for extra storage. Then, as storage prices continued to fall, Google went after new customers by offering 1 gigabyte free to every user. Yahoo responded last year with the ultimate offer: infinite free storage. Since each page of webmail comes with ads, more users means more revenue. "
"....What's free: any product that entices you to pay for something else. Free to whom: everyone willing to pay eventually, one way or another...."
"......The huge psychological gap between "almost zero" and "zero" is why micropayments failed. It's why Google doesn't show up on your credit card. It's why modern Web companies don't charge their users anything. And it's why Yahoo gives away disk drive space. The question of infinite storage was not if but when. The winners made their stuff free first......"
"....What's free: any product that entices you to pay for something else. Free to whom: everyone willing to pay eventually, one way or another...."
"......The huge psychological gap between "almost zero" and "zero" is why micropayments failed. It's why Google doesn't show up on your credit card. It's why modern Web companies don't charge their users anything. And it's why Yahoo gives away disk drive space. The question of infinite storage was not if but when. The winners made their stuff free first......"
posted by Amogh @ 1:21 AM
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