Why Free Businesses Succeed

by Shaan Chopra

We love the term “Free” don’t we want everything to be free. Most of the Free Businesses succeed majorly in the business line. They grow out like crazily in the market, not only grow they penetrate to an extent which we cannot even imagine. Free really doesn’t mean that a business is doing that for charity. What it really means that they have other plans for monetizing their efforts. Free for us might not be free for someone else.

Most of the social network companies are “Free”, all the web search companies are “Free”, games and applications on a smartphone are termed “Free”. What I like the most is WordPress is “Free”. So, how are the earning and still in the business?. Free Businesses Succeed and they have a very different way of monetising their work. If we look at search engines they earn on advertising. This is free for us but guys who want to advertise themselves are paying heavy amounts. Social networks do the same and in return, we get ads on our feeds.

When Free Businesses enter in the market their whole agenda is to penetrate to the masses. Pick up an of the free product or service you know and check them out. They are used by masses from Gmail to Twitter it is for everyone. The mobile application does the same go to the masses and then monetise their effort in the course of usage.

I love the free model, most of the time this works. But there many who fail as well as this is a competitive world. If we see a photo editing application, we have hundreds of them and not all will succeed. Here the end consumer gets smatter, he uses one app for one work and moves to another for something else. This makes the Free Businesses remain free for a longer period of time and eventually they crack.

So, I ask you the same question that I ask myself are these Free Businesses still viable in today’s competitive world.

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