What is the Value of Free? Wired Magazine Article

I just read an interesting article in Wired magazine called “Free” by Chris Anderson. The timing was perfect. I’ve had some conversations with people on how to monetize their podcasts. They are considering making their podcast a “premium podcast” with a price.

I try to look at the world as a big, bell shaped curve. In other words, the world isn’t black and white, it is mostly gray. If I remember my stats correctly, two-thirds of everything exists within one standard deviation of the mean. So how does my view fit with the article? I think there will be many ways to monetize podcasts and new media. I just think most people will find a similar method. There will be fewer at either extreme, but they will be there and they, too, will be successful.  Can I predict what will be at the extremes?  No.  Can I predict what will be in the middle of the normal curve?  No.  I just know that there is room for all methods and room within the same business for different approaches.I believe that the “expected” consumer price for a podcast will be $0.00.  But, if you create products covering the whole of the curve you will have access to the largest market. Having free podcasts, high-end premium cast, and everthing in between, will yield the greatest rewards. While a free podcast may not bring in much money, it may bring great audience size. At the other end, a high priced premium cast will have a much smaller audience, but, it may generate an equal amount of income. I do think a “premium cast” will be a powerful money maker when partnered with a free podcast. And every “free” listener has the potential to become a “premium” listener.  This concept is not new.  It has been described as the sales funnel.  Get people using the free version, build a relationship, offer a low-priced, paid product to get the customer used to paying for an enhanced version, continue to build the relationship, offer yet a higher-priced premium version.  This can continue to some pretty lofty prices as long as there are customers willing to pay for truely exclusive, premium content.