« Back to blog
 

Seven ways the web is free

So much of what we do online is free. I am well into my 6th decade so I tend to use a few things a lot, rather than a lot of things a little. 

My list is something like this:
Google Apps, Yahoo, Various News sites
Flickr, Youtube, Pandora, Various video sites
Twitter, Tweetdeck, LinkedIn, Facebook, 
Blogger, Wordpress, Posterous
GetSatisfaction, SurveyMonkey, Woopra

I spend ~100 hours/month using free sites and $100/month on Internet-related services (Netflix, NYTimes, ComCast and hosting). A dollar per hour is a great deal for me, but it alone it won't sustain a business. So where does the money come from? There are several Internet business models, but ultimately the money comes out of somebody's pocket.

1.Hope - Gain enough users/uniques to enable monetization or acquisition

2. Freemium models - 5% of the users subsidize the other 95% (on a good day).

3. Ads - promotional dollars filter down to cost of real goods and services, bought online or in the real world.

4. Risk Money (ie. venture captial) - equity wealth creation and redistribution.

5. Virtual goods - a cross between donations and Ads IMO.

6. Donations - .org

7. Taxes & fees - .gov & .edu if you use them.

Did I leave out any?
Posted by sam beal
Posterous theme by Cory Watilo.