Business to Insurances

Selling Your Free!

How to sell your old-fashioned! "So says a senior businessman told me when we were breaking the fast together, the month of Ramadan. I stammered. Why, only this time there are say so about my business model. But since he is much ... much ... much ... more experienced than me, with its hundreds of business scale fold my business, I had no choice but to hear his criticism. I hold his breath waiting for the next sentence.

He added, "If you're a business IT, ask customers buy the product, the business earlier times". I began to understand. Because some of my existing customers who are using the monthly payment patterns or lease. Not to be outdone I immediately commented: "If the lease or pay a monthly fee how sir?" He replied: "That's better. But it's also quite old now! "Well this makes me surprised again. "Its not how dong ancient sir?", I was more curious. "Its not that old when customers need not pay!." Almost jump out of my chair. Free? Must pay the employee salaries from where? He just laughed, making me more curious.

As "Law of Attraction" to work hard for me. Two weeks later I accidentally find any new work book one of my favorite authors Chris Anderson, the title: "Free: The future of radical price". Yes, senior businessman had turned out right! The future turns out there is at zero price, or free. Customers do not have to pay.

All Multipurpose Internet

There is no denying, free virus was already spreading everywhere. We can now easily access the internet at the malls infrastructure through hot-spot free. I use a laptop with Ubuntu Linux OS that was distributed free by Canonical, typing with the Open Office word processor that is provided free of charge by Sun Micro systems, use the free Firefox browser, using Google's free email service, free chat via Yahoo Messenger and access networks such as Facebook for free. In fact, if her online at airports, coffee was accompanied me online free, complimentary lounge sponsored issuers of credit cards that I used. Chris Anderson even typing his entire book through Google Docs applications, word processing is provided free online by Google.

Wait ... why are free only services related to the internet? Oh no. Beyond that you can also easily find the products or services free or very cheap. Indeed, not all are available in our country. Several years ago, if you wanted to install satellite dish at home, we had to pay quite expensive. Now parabolic antenna "loaned" by the service provider via satellite TV broadcast. Modem can be obtained free of charge if we subscribe to broadband. Almost all credit card issuers are exempt its annual dues. Low cost airlines have revolutionized and pioneered the sale of airplane tickets are very cheap or even free. In developed countries, this free product list more and more. You can have the phone for free, of course with certain subscription contract. Have a free laptop, by subscribing to broadband access. In short its all there is a free version, there was even a free car. If the free magazine is very common, in Tokyo, in fact there is a store that provides free item for every 5 visitors, ranging from candles, instant noodles, to face creams.

It's Free Lunch (Ever) There

You've heard the expression "no free lunch". This phrase actually comes from Cowboy era in the United States. At that time a lot Saloon, hangout ancient Americans, which provides free lunches to attract visitors. Her lunch is absolutely free. Expensive but visitors must pay for others, such as drinks, casino games, room rental, etc..

Divide the product free also originally done by King Gillette, the creator of the world's first razor. Ancient man shaving with razor folding knife that is not practical, must often in sharpening, etc.. The idea of ​​using super-thin razor that does not need sharpening, but discarded if it is blunt, is a new idea that was initially difficult to understand. Gillette also distributed for free as a marketing gimmick other products, with the hope that new users will love this idea next purchase. For example, in collaboration with the bank, the new Gillette blade used as a bonus for opening a savings account. And Gillette true, Gillette razors gradually known and then worldwide to this day.

Jell-O, the most popular dessert in the United States also initially difficult to sell. Peter Cooper, inventor of gelatin food is difficult to introduce its new product. Only after the product is marketed by marketing genius and orator Francis Woodward, Jell-O finds its place in the market. Woodward not distribute this product for free. However, printing and distributing free recipe books to give ideas to prospective customers, that Jell-O is very practical and can be served with a variety of variations. Woodward who purchase a license Jell-O just for $ 450 a huge success.

From Scarcity Into Abundance

Free model a la Saloon, Gillette and Jell-O are models free last century, which until now is still frequently used. However, the 21st century has created a new free business model. The business model is driven by convenience and technology.

Plastic was originally designed as an exclusive product. Research and production costly. Plastic is also more robust and durable than the wood. So it is only fitting of plastic products sold expensive. However, we see today, so plastic is everywhere abundant. Commodity plastics eventually become abundant and cheap.

Modern electronic goods grew rapidly after the transistor was invented. At first transistor is an expensive rarity. 1961 price of 1 piece of transistors is $ 10. Less than 10 years his prices are down to $ 1 cent. And today, a microchip which is equivalent to 2 billion transistors only sold for $ 300, or 0.000015 cents per transistor. The same thing happens also for disk storage capacity and bandwidth, is becoming increasingly cheap. This then sparked the digital revolution change the way entrepreneurs in search of revenue.

When a product has become a commodity that is "too cheap to be appreciated", then we are no longer able to rely on price of our products as a source of revenue. Price is strongly associated with scarcity, while we face is abundance.

Free? From Where the Money?

Running a business is remains to be profit-oriented, that its source is revenue minus cost. Free business model basically does creativity on revenue sources, instead of eliminating the revenue. If the original revenue solely from the sale price, then the principle of abundance, we try to seek revenue from other sources. Some existing business models are:

Direct Cross Subsidy

This first generation model. Revenue from other sources to provide cross-subsidies that deliberately lost items. For example, a free phone, but pay talktime. Free satellite dish, pay subscription fees. Free software, pay for hardware. And so on. Including the business models used to distribute Canonical Ubuntu Linux OS for free. Its software is free, but if the company then need consulting services, training and implementation of the official Ubuntu Canonical, the company must pay dearly.

Third Party Subsidies

This business model which used radio, TV and Internet Magazine. Customers free, but advertisers pay. Also used by credit card issuers provide free tuition, but gives an expensive charge to the merchant. Disco was also a pioneer model through the "ladies night". Free for female visitors, but visitors guy pay.

Freemium

This model is often used and information technology consulting firm. Free for the generic version, but paying for the premium version. Can also be varied by the module. Free for limited module, module fuller pay. Free of charge for the initial consultation, pay for a more complete consulting services. Free to overview seminar, pay for a more complete training.

Nonmonetary

It is 100% free. Services rendered totally free. Remuneration which service provider is the attention and reputation. And with the ever increasing reputation, known everywhere, a lot of things you can do to bring in revenue. Musician who gives his work for free and gain reputation and attention, can generate revenue from concerts or her merchandise sales.

Before Selling Your free Okay ... okay, maybe still sounds scary to eliminate just selling you. Indeed, there are several things to consider before you eliminate your merchandise:

First, Fit to existing business models now. You have to analyze carefully the source of your revenue. In general, you are meant to eliminate the sales revenue increase, not reduce revenue. If you are selling clothes and just handing your latest product, hard to imagine to get a bigger revenue. But if you are a member subsidy on accessories and hand out free as a gimmick to get more customers, makes much more sense. Or maybe that could be made free is a catalog, newsletter or booklet on how to use your product to the fullest.

Second, to be effective if its free mass, involving a large crowd. Because of the fixed costs, the greater the customers involved, the cost per customer would be diminished to nearly zero. Distributing free software to 100 people or 1 million people will be very different. So Canonical with its Ubuntu diligently send a free CD. In the digital economy existence of our products in the market will depend on the attention and reputation. Internet is the weapon to achieve two things.

I closed the open along with a senior businessman in front of me tell you with a feeling of satisfaction. He spoke in detail "secret recipe" IT services eliminate him, and still earn revenue from elsewhere. Before we parted, he uttered the phrase: "Oh yeah, if everything is free, free was so ancient. Customers should not have to pay, even paid! "Wow .... (FR)

Source:catatan fauzi.blogspot.com