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Can You Make Money from FREE?
Well, apparently Chris Anderson, author of New York Times bestseller The Long Tail and editor-in-chief of WIRED magazine, seems to think so. Moreover, you can still make a decent living out of it. In his book, FREE: The Future of a Radical Price (which you download completely for FREE though I have the paid paper version), Anderson shared that charging people $0.00 for goods and services can only be possible primarily through cross-subsidies. These could take the following routes: 1) Direct Cross-Subsidies where everybody pays eventually one way or another (eg one-for-one free deals for DVDs). This is prevalent in retail outlets and consumer goods markets involving physical products; 2) The Three-Party Market where a third party (normally advertiser) pays to enter a deal for content, services, software and more between the producer and the consumer. Principally, the entire media industry was built on this model; 3) Freemium, whereby the basic product is free, but the premium product needs to be paid. Her
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