Free: How Today’s Smartest Businesses Profit by Giving Something for Nothing by Chris Anderson

When it comes to the world of business and economics, conventional wisdom has long held that the only way to make a profit through commerce is to charge for services or products. However, in his 2009 book Free, Chris Anderson turns that idea on its head, arguing that the smartest businesses are the ones giving something away for absolutely nothing.

Anderson begins by examining the emergence and success of free online business models, such as Google search, Hotmail, YouTube and Skype. He makes the case that while many of these online services require significant up-front investments, they create an economy in which virtually all of the costs associated with delivery and development can be either shifted to users or monetized in other ways. In other words, the companies running these services don’t have to charge users for their service in order to make a profit.

Anderson then moves on to discuss how businesses are able to turn a profit without charging for their products and services. He explains how companies like Amazon, Apple, andWal-Mart have found success by utilizing a “freeconomics” model, which involves offering goods and services at no cost, while monetizing them through the sale of associated products, advertisements, and data. According to Anderson, freeconomics allows businesses to attract larger customer bases, boost brand loyalty, and increase profits.

Anderson next touches on the increasingly popular idea of “freebies,” which he describes as gratis products or services that have value and can be used as marketing tools. He goes on to explain how companies like Microsoft, Adobe and Twitter are benefitting from the practice of offering their users free products, such as demo versions of new software, tools or plug-ins. Through offering these services, companies can open new avenues for generating leads and sales, test new features with real users, and build brand loyalty and trust.

Finally, Anderson addresses the notion that the most successful businesses today generally allow their customers to access, use, and even modify their products without charging a fee. He cites companies like WordPress, Mozilla, and Blogger as examples of companies that have leveraged this open source approach to success. By allowing users to access their products for free and make modifications, companies can create opportunities for broader user reach, use of the product, and innovation, while potentially increasing revenue through contributions and other revenue sources.

Overall, Anderson’s book Free provides an intimate look at how businesses of all sizes have come to rely on free business models in order to gain traction, increase profits, and stay ahead of their competition. Through focusing on the many advantages of free, Anderson shines a light on what has become a major trend in the business world. His book serves as an invaluable resource for anyone interested in understanding the growing importance of free in the modern economy.