FREEMIUM

Chris Anderson is best known for coining the phrase (and concept) of The Long Tail. It's the idea that Amazon.com is built on where he states our "economy is shifting from a focus on a relatively small number of mainstream products towards a huge number of niches in the ‘tail’."

I just read an interview with Chris at the 123-reg blog and he's got a new theory called the ‘freemium’ model.” The basic idea is many internet related businesses will give away stuff for free to sell somethingelse. It's a lot like the relationship I have with Google/Blogger. I get a free website, google gets another space to sell their advertisements, I post information like my How to Start a Hotdog Business Article for free and in turn generate advertising revenue. The only one paying for anything here is an advertiser who wants to reach people who want to start a hot dog business. Another example of the Freemium Model is a company giving away a majority of its product or service free in order to get a small amount of sales from premium users.

Chris also talks about the future of social networking (which he thinks is in its infancy). In the future he believes EVERY website will have a social networking component. How this will change the internet landscape remains to be seen, but one thing is for sure-he was right about the Long Tail!

Chris was named to the Time 100 as one of the "100 people whose power, talent or moral example is transforming the world." I certainly give a lot of credence to what he has to say. Head on over to the 123-reg blog to read the whole interview. It's compelling stuff.

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