An interesting discussion is emerging regarding the use of paid services versus free on the Internet. This is an important debate for potential web start-ups as generating finance through investment and generating interest through social networking is what is required for a small business to grow. However, in a market where many things have “free” alternatives (generally supported through advertising) - how does a small web company compete?
To sum it up here are some of the articles that caught my eye:
- Free is Killing Us. Blame The VCs (via Why does everything suck?)
- “Free” is Killing Us–Blame The VCs (via Silicon Valley Insider)
- Freetards ruining the web?
- Freetard economics
- An Idea That Really Clicked
The obvious answer is to offer something unique or novel but how long after launch will a free alternative appear? The me too culture of jumping on the bandwagon pervades across the Internet - just look at the number of search engines, social media, bookmarking, photo sharing sites are out there. Many of these sites offer services for free and continually broaden their services in order to gain and retain site visitors - in the hope that some vertical (or side) revenue stream can be used to generate a profit.
So what is the answer? and can a new web start-up really compete?
Tags: business · freetards · sme · Startup · tech · vc1 Comment
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