Chris Anderson, editor at WIRED magazine, wrote a very interesting article about ‘FREE’ being the new business model, online:

http://www.wired.com/techbiz/it/magazine/16-03/ff_free

After reading the article, it made me think about specific examples of how several Internet marketers make use of powerful freebies to build their online businesses…

Yesterday, I’ve ordered Mike Filsaime’s best-selling software and home study course, Butterfly Marketing, which has been selling for $1,997 over the past 2 years. I’ve only paid for shipping and handling (s&h), and this is truly a very powerful freebie.

The ‘catch’, you might ask? Well, in exchange for the valuable freebie he offers, Mike wants me to evaluate his new monthly newsletter subscription, and I am also getting the first issue for free.  The ‘catch’ is that I am automatically added to a continuity program (with my permission, of course). So this business model is banking on subscribers staying long enough to recoup your initial giveaways (which obviously cost more than the s&h).

Let me give you another good example of this new ‘free’ business model…

Online shoppers who can’t decide whether to pull the trigger on their next purchase may be surprised at a new alternative: an offer to get it free, and it is a new marketing method that relies on a web of business relationships to give consumers free goods, as long as they buy something else from a long list of well-known online stores.

The idea comes from Trial-Pay, and Profits.CC adhered to this new business model, as from today.

All three parties benefit with this new business model: the consumer gets a sizable and immediate discount on a purchase, advertisers find new long-term customers, and the merchant (in this case, Profits.CC) is more likely to complete a sale.

Basically, I am offering site visitors an additional option of getting ANY of the 6 (six) video courses available at Profits.CC for no charge whatsoever (which normally sell for $27 each, with master resell rights), as long as they buy something else from a long list of well-known online stores.

What are your views about ‘free’? Is there an online business model to $0.00? Are you considering to apply this new business model to your own e-business, in order to optimize your online sales? Please leave your comments at this blog.