Free for a Fee
Out of the many different business models on the web the community based model is one that has grown to epic proportions over the last few years. From social networking sites to free software offers this model is virtually every place you look on the web. This model, according to Michael Rappa, in its pure form allows people/companies to offer up useful products, services or sites to the masses for free in the hopes that their good will gesture will come back to them.
The business model stems from the very attributes that have made the Internet so great, providing and receiving information for Free. You may be thinking, "How is this a business model if the provider doesn't charge anything?" What do people/companies really stand to get from these seemingly self-less gestures?
- Contextual advertising (my space, Flickr)
- Opportunity to sell up grades/ subscriptions or other products after being proven and entrenched (Free trial software, linkedin)
- Paid for services for systems integration, customer support, even to build backlinks to websites (open source software, widgets)
- Voluntary donations (wikipedia, .orgs)