If you think “free” can’t be your internet business model, think again. More businesses on the Internet now are offering free products. Just look at Twitter, Plan to Start, WuFoo, Facebook. How do they do it, and how are they making money?
Well, for starters an Internet Business is valued by its user base, and the quality of those users. It’s a sure fire way to launch a site quickly, building large amounts of traffic in short time intervals. First, I’ll explore why you should adapt this business model for your Internet business, and then we’ll get down into the strategy.
Free is better. Is it not easier to give something away, then to sell it? I’m not saying you’re taking the easy way out either. Traffic is key to a site’s value (as described above), hence it becomes easier to price a product later on once the traffic and user base is established. Also, a customer appreciates someone who gives them something completely free, no strings attached. When was the last time that happened to you? Sales in companies that offer a valuable free product actually see higher sales on their other products. This builds customer and brand loyalty.
Free Business Model Strategy
Let me point out, you will have to sacrifice for the future. Your sacrifice, however, will determine the overall success of your business. There are two general types of strategies behind the Free Internet Business Model:
Think It, Grow It, Sell It
- This business model strategy consists of building your idea, growing your free internet business, then selling it. The power of blogs & social media now allow us to build a site (and promote it) for free. Try partnering with an equity developer to share in the future rewards. It will lessen your load, and give you a technical advantage. I’ve included a resource at the bottom to learn more about equity developers. Once the site has built a substantial following, you can partner with a venture capitalist who can put the resources in place to monetize it. Or you can sell it. Nice way to prepare for retirement. Don’t quit your day job until your internet business is generating enough advertising revenue to pay your bills.
Give Away Something for Free
- In this free business model, you already have a plan to monetize your website. But you need more..you need something to stand as a value proposition to get your email list built. The fastest way to do this is by offering a 100% free product. You’ll attract more attention, subscribers, and that traffic is more likely to purchase your products.