Free: the future of business Reading Notes

The fundamental problem with free pricing is how to make a profit for free!

The core of the free-to-charge mode is to lose money on the free service, but make money on the premium paid service. At the same time, the former is used as a cheap promotion method.

Cross-subsidy has different effects:

1. Use Paid products to subsidize free products

2. Pay later to subsidize the current free price

3. Paid users are provided with subsidies for non-paid users.

Free mode is mainly divided into the following four categories

1. direct cross-subsidy

2. Third-party Market

3. free and paid Mode

4. Non-currency market

Law of profit loss:

If a commodity has a sufficient situation, the cost will be reduced to almost zero, and the profit search point of the Enterprise will be transferred to adjacent fields.

If a certain item needs to be paid in the past, but now it does not need to be paid, we may think of whether it is quality decline. However, if we never need to pay for something, we will not feel this way.

"Cheap, negligible" will change the world.

Learning curve: It indicates that if a task appears more times, the next time humans repeat the same task, the time required will be reduced.

People who accept my ideas will learn from me, but it will not affect me. It is like someone has lit a candle in front of me and made myself shine, it also brightened my eyes.

Ample information is free, and scarce information is expensive.

Dunba number: the number of interpersonal networks that an individual can maintain is 150.

Porter's competitive theory: in a competitive market, the price is equal to the marginal cost.

The free removal of professionals favor amateurs, and the price of return is quality.

Top 10 principles of ample thinking:
1. If it is a digital product, sooner or later it will become a free product
2. Physical product manufacturers also want their products to be free of charge, but they are not doing actively in this regard.
3. You cannot stop free
4. You can make money from free
5. Redefine your market
6. Rounding
7. Sooner or later you will compete with free
8. Accept waste Behaviors
9. Free to make other products more expensive
10. Ample management, not scarcity