FREE?

There seems to be a lot of confusion about the whole "Free" website/business/social networking scenario. Recently Newsweek magazine propagated more confusion in an article they called "It's Time to Pony Up : Why good Web sites shouldn't be free."

The problem with the article is Daniel Lyons ensites rather than informs. Even by his own admission he's not an "avid member of Facebook" but.... Lyons throws out emotional appeals like "web sites shouldn't be free," and "contrary to the conventional wisdom, people really are willing to pay for online services," and "I think some companies are scared," to try and prove his point that everyone should charge for content on the web.

Unfortunately, he contradicts himself later in the article by using Paltalk.com as an example. His own words here. "For zero dollars, you can trade instant messages on Paltalk with up to 10 people and see their video- streams. But if you want to visit chat rooms and see video streams from hundreds of people, you must pay $14.95 per month, or $60 for a one-year subscription."

For "zero dollars" Paltalk allows users to use there site for nothing. Only when they use premium services does he charge. "Zero dollars" is FREE!!!

I realize many of us struggle with our hard efforts being given away. In my business its very frustrating. But if you fight it you will loose. The key to success is understanding that the marketplace is changing. (And by the way, ain't nothing free!!!) We have to bet more creative in our marketing and selling practices.

Please read Chris Anderson's new book "FREE" to get a better understanding of the new "FReemium" model. By the way, the audio is free on iTunes.