Difference between revisions of "Economy of Free"

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* Nine Inch Nails<ref name="Radiohead-NIN" />
 
* Nine Inch Nails<ref name="Radiohead-NIN" />
 
* Other?
 
* Other?
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 +
==Method for improving the revenu curve of a free business==
 +
*More information: suggested price, cost structure, financial situation, communication, communication.
 +
*Real time dashboard of funding ([http://www.tjoonz.com/about/ tjoonz.com]) = information
 +
*Montly/yearly automatic payment facilities ([http://www.ah.fm ah.fm])
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*Special privilege to giver ([http://www.ah.fm ah.fm])
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*Funding for specfic project
 +
  
 
==References==
 
==References==
 
<references/>
 
<references/>

Revision as of 18:33, 6 October 2010

This is an attempt to formalize and quantify a free culture economy based on free payment.

Warning: I'm not an economist. Some of this stuff should be reviewed by somebody more knowledgeable.

Basic concepts

Free Payment Conversion Factor

FPCF = #payments ÷ #consumers = %

Example:

  • For downloadable products: number of payments ÷ number of downloads
  • For streaming: number of payments ÷ number of (unique?) users
  • For web publishing: number of payments ÷ number of unique visitors
  • For video: number of payments ÷ number of unique viewers

Vary from market to market.

Find FPCF for known cases:

  • Wikipedia[1]
  • Kottke (web media) : 0,3%[2]
  • Radiohead[3]
  • Nine Inch Nails[3]
  • Other?

Method for improving the revenu curve of a free business

  • More information: suggested price, cost structure, financial situation, communication, communication.
  • Real time dashboard of funding (tjoonz.com) = information
  • Montly/yearly automatic payment facilities (ah.fm)
  • Special privilege to giver (ah.fm)
  • Funding for specfic project


References

  1. Donation - A Business Model, Really?
  2. Kottke micropatron follow-up report: how things went
  3. 3.0 3.1 The Free Music Donation Business Model: Radiohead generates $6 million and Nine Inch Nails $1.6 million in one week