"Zero" Creates Brilliant New Business Models

If you understand where the zero fits into the business model, then there are plenty of business models that work great.
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It makes plenty of economic sense for certain things to be free and then the scarce goods are what you charge for. The trick is enabling a business model where the infinite goods make the scarce goods you control more valuable. This is absolutely possible for any business -- and, in fact, failing to understand how you do this will most likely doom your overall business.

http://techdirt.com/articles/20090304/0051483982.shtml


One simple example of this is to use that item that "costs" zero as a promotional good for something that does not have a zero marginal cost.

http://www.techdirt.com/articles/20061025/014811.shtml


The band No Doubt, is giving away their entire catalog of music as a download, for folks who buy certain concert tickets.

http://techdirt.com/articles/20090304/1644373993.shtml