The Profitability Of FREE

Its amazing how fast commerce has evolved on the Internet. I remember when I made my first e-commerce website in 1996 that allowed people to print out there order form and send in a check. That was online ordering back then =P.

Now there is hardly Internet service on the net that is not free or at least free to trial.

People are used to it.

But what is the cost of having free service. After all you have employees to pay for and other costs.

Google has amazing FREE internet services, provides NO live phone number or direct contact for help, and they absolutely kill it.

One of the main reasons is because Google has VERY FEW services that it actually takes payments for. Those services account for less than 5% of the companies total revenue.

The rest of its revenue is (obviously) from ads. And most of that all on their “Free” properties.

Facebook is another great example. One time at an advisor meeting a unknown Facebook executive asked me if I knew what their product was. I said, “ads?”. He said no, that it was people. “We sell people and their information to companies who want to target advertising to them”.

I just acquired a property that has millions of unique hits per day on its javascript widget. Its a wordpress plugin… per say… And yes of course… its FREE.

I contacted a data buying company last week and from initial reports I am giong to make in the first month over 50x what I paid for the plugin. Yes 50 TIMES my ROI in the first 30 days.

Its amazing this whole “Free” model… Super profitable.

I did pretty good with a Free Seo Report service that I sold a couple months ago for 6 figures…

People become the commodity in a FREE model.

Build something cool, give it away…. when you get a lot of users then hit me up to buy it.