- The razors and blades business model
- The broadcast media business model (also represented by Google and others)
- The “freemium” model: Basic is free, but you can buy a premium version (LinkedIn, NewsGator)
You don’t have to use “free” in your new business model, but it’s important to understand how it lures customers. The Internet by its nature lends itself to this approach and, in fact, thrives on it.