Posted by : Amber Marfatia
If I were to tell someone that one can give you something for free and yet make money, is it easily digestible? No, right? There are so many things available on internet for free (like the browser that I am using now - FireFox for publishing this post) but still they not only make money but are profitable! So, what is the behind the door story that makes them grow without charging? There are many products that are free like.....
... amazon, drop box, evernote, facebook, gmail, hotmail, google ad-sense, android and many many more.....
One simple answer is the advertisement that the online services put like in the case of
LinkedIn that makes money from advertising, from paid subscribers and they also sell pro data of job seekers to recruiters. (read the policy) But then there are 5 more areas (apart from Ads) from where the revenue pour in...
1.Advertisement (On clicking the ad, the advertiser has to shell out and host gets paid)
2.Subscriber (sells subscriptions to people who want premium features)
3. Lead Generation (Co. are paid per the leads that are generated for the source co.)
4. Selling data (To Co. and recruiters to pay and gain access to LinkedIn databases.)
5. Freemium ( Basic product or service is provided free of charge, but a premium is charged for advanced features, functionality)
6. Royalties ( usage-based payments made by one party (the "licensee") to another (the "licensor") for the right to ongoing use of an Asset or an IP)
There are so many products or services that are based on the above business models and the one of the best site that I have come across is http://rcs.seerinteractive.com. Its a fantastic site that can provide this info in one of the best way possible.
A lot of interesting facts can be then further discover once we start looking into the URL provided right at the bottom of the small hover pop-ups that tells about the business model our favorite site do!
For e.g. on checking how does Skype makes money i found this interesting section on Skype site @ https://support.skype.com/en/faq/FA335/how-does-skype-make-money that tells us how is Skype doing its business. We might be visiting the site, but would bother to check this info most of the time!
And one of the most interesting model is the concept of 'Freemium' which has been adopted by Evernotes. Check out some interesting approach taken by its CEO at http://www.wired.com/business/2011/05/evernote-freemium/
Try to dig the info. for all the Co. listed in the site at http://rcs.seerinteractive.com and enjoy wanted or unwanted information!