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The Economics of Free

Free and Freemium: Recap

A recap of how free products make money.

This lesson reviews the module.

Idea

Free is a pricing strategy, not an absence of cost.

Models

Freemium, advertising, loss leaders and public funding.

Psychology

Zero price biases choices.

Advice

Know what you pay in data and attention.

A quick audit

List your favourite free apps and how each earns money.

Treating free as charity

Businesses have reasons.

Key takeaways
  • Free has costs.
  • Models vary.
  • Psychology shapes choice.
  • Be an informed user.
1 min read

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