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Free: The Future of a Radical Price

by Chris Anderson (Goodreads Author)

3.77 of 5 stars 3.77 · rating details · 3,888 ratings · 427 reviews

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Published July 7th 2009 (first published 2009)

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Aug 12, 2011 Stanislav rated it 3 of 5 stars · review of another edition

This is a great book about economics of "Free" (as in free beer mostly). People are currently getting a lot of things for free and people and companies are getting rich by giving stuff away for free. You just have to find the right way. This book is full of interesting examples and approaches that date back to 18th century (and even more back occasionally). However I didn't exactly agree with author's description of Richard Stallman as (quoting) "...former MIT firebrand whose Free Software Found...more

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Oct 10, 2012 Nicholas rated it 4 of 5 stars

Shelves: audio-books, cmdc, library, professional-development, semantic-web-scale

A nice coda to The Long Tail. Chris Anderson is a journalist, publisher, and someone who can write about economics for a public audience.

I happen to drink the Kool-Aide connected to information abundance and how so much of the existing information distribution business is being disrupted by digital media and I think Anderson makes a very strong very accessible case that this is happening.

He's more accessible than Benkler. Even more so that Shirky or Weinberger, but he does so without sacrificing...more

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Aug 09, 2011 Pascal Lapointe added it · review of another edition

Ça me fascine de voir comment les idées les plus simplistes peuvent être transformées en des livres qui ont les apparences d’une recherche rigoureuse et abordant tous les aspects du problème, alors qu’ils passent 240 pages à éluder le principal aspect du problème. L’idée, ici : la gratuité. Chris Anderson, mieux connu pour une idée simple, The Long Tail, à partir de laquelle il a tissé une longue traîne de conférences et de revenus pour lui-même, tente la même chose avec Free, mais sa démonstrat...more

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Aug 03, 2011 Bill added it · review of another edition

The great clash documented in this book is between the atom economy, which is in the business of selling stuff, such as food, clothing, cars, CDs and the byte economy, which is the business of selling knowledge, image, access and convenience through products that have no physical presence.

As a late-stage baby boomer myself, I have had my own difficulties wrapping my brain around ways of thinking that come naturally to the generation that has never known a non-digital world. How to proceed with...more

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Apr 16, 2013 Jeremy Dooley rated it 2 of 5 stars · review of another edition

Hey, Chris Anderson, the stuff in your house "wants to be free" too, but I'm betting you lock your door so people (we call them thieves, no matter how many of them there are) don't take your stuff.

This book starts off well, and delves into some interesting anecdotal items, detailing some innovations in business models that are intriguing and worthy of exploration.

However, in the last hour, Chris climbs onto his ideological soapbox. Like all elites, he feels he can preach at us about how all inte...more

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Jan 20, 2013 Remo rated it 5 of 5 stars · review of another edition

Shelves: 2013, economia, empresa, ensayo, informatica, internet, historia-reciente, smart-reading

Fascinante libro del autor de La economía Long tail, que de nuevo sacude los cimientos de lo que tenía por establecido.

En este libro se hace un repaso de os modelos e negocio de la era digital, que pasan o acabarán pasando (y esta es la tesis central del autor) por tener gran parte de los contenidos gratis. Tras el repaso a los modelos de negocios "subvencionados" (material gratis financiado por publicidad) y "freemium" (la mayoría no paga, los muy fanáticos del juego pagan y subvencionan a tod...more

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Sep 06, 2012 Katie Wilkie rated it 4 of 5 stars · review of another edition

Chris Anderson has written a book all about the phenomenon of "Free"--paying nothing for something--and how it is changing the way we do business in the digital age.

Consumers in the past have been skeptical of Free--you've probably heard it in the form of "there's no such thing as a free lunch." But Anderson argues that the digital age has brought with it a "bits economy" in which there actually can be such thing as Free--with no strings attached. Many products in the digital age cost little or...more

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Aug 21, 2012 Tunjung rated it 4 of 5 stars · review of another edition

First of all,the book's main idea is how by transcending our classic idea about revenue stream can open so many possibility,by shifting the point where we earn revenue by scale of time,form,process we actually earn values that previously unseen.In short, bridge between pragmatism and idealism in IT enterprise world,but if you take a look at the bigger picture,the idea also applicable in other field of enterprise.He's not the first to came out with that long tail idea,but he definitely the first...more

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Jan 20, 2012 Vincent rated it 4 of 5 stars · review of another edition

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Jan 07, 2012 Eli rated it 4 of 5 stars · review of another edition

This was not exactly what I expected it to be, but I thoroughly enjoyed it nonetheless. This is a look back at how "free" has played into so many markets over the years and where it may take us from here. Not really a "how to" book, but more of a history of the free price point.

There is good coverage of the different meanings of "free", including buy-one-get-one-free, free with purchase, free basic versions that have paid premium versions, and many others. There is great information about how o...more

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Oct 30, 2011 Христо Блажев rated it 5 of 5 stars · review of another edition

Крис Андерсън описва как “Безплатното” променя света
http://www.knigolandia.info/2011/03/b...

“Безплатното не е сребърен куршум. Подаряването само по себе си няма да те направи богат. Трябва да помислиш творчески как да превърнеш репутацията и вниманието, които получаваш от безплатното, в пари. Всеки човек и всеки проект ще изисква различен отговор на това предизвикателство, а понякога нещата изобщо няма да се получат. Това е като всичко друго в живота - загадка е само защо хората обвиняват безпла...more

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Jun 02, 2011 Bojan Tunguz rated it 4 of 5 stars · review of another edition

The best things in life are free, or so the old saying goes. These days, however, it seems that more and more companies and retailers are trying to get us something for free, and it is becoming increasingly doubtful that all of those freebies are the best that life can offer. Nonetheless, all this free stuff has certainly contributed to making many aspects of our daily lives simpler and more convenient, especially when it comes to those parts of our lives that we spend in digital world.

The rais...more The best things in life are free, or so the old saying goes. These days, however, it seems that more and more companies and retailers are trying to get us something for free, and it is becoming increasingly doubtful that all of those freebies are the best that life can offer. Nonetheless, all this free stuff has certainly contributed to making many aspects of our daily lives simpler and more convenient, especially when it comes to those parts of our lives that we spend in digital world.

The raise of free predates computers, and it has a venerable history in the annals of marketing. Chris Anderson, the editor in chief of the "Wired Magazine" and the author of insightful "Long tail," narrates the greatest highlights of the history giving products for free. He also explains the rationale behind how the prices get set in a free market, and the reason why in the absence of almost any production costs we can expect products to eventually end up free. The reason that there is a proliferation of free nowadays has everything to do with the fact that the cost of creating and moving bits of information around is essentially zero.

Anderson spends an entire chapter defending the free model against its many critics. He takes every common objection to free that has been heard in recent years and provides a cogent and well-informed refutation. How convincing his arguments are, however, may depend on your own attitude and point of view.

At the end of the book there is a list of fifty different business models where products or services are given out for free. This is a useful list for anyone considering a cutting-edge modern business, and for the rest of us it gives us an opportunity to take a look at what kinds of things can be obtained for free these days.

Overall, this is an interesting book that takes a look at modern economy form a very unique angle. Only the time will tell if the paradigms used in this analysis will survive the test of time or are they just the latest fad.(less)

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May 07, 2011 Joe rated it 4 of 5 stars · review of another edition

This book examines the free economy, focusing on the changes to business and society caused by the ease and availability of free digital services and products. For a topic that might seem like it might be dry, it's explored in a very interesting way in this book.

The book starts by discussing free products and services that have been around for a long time, such as "buy one get one free" deals at stores. The author discusses the psychology of receiving things for free -- a topic that is fascinati...more

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Apr 21, 2011 Paul Signorelli rated it 4 of 5 stars · review of another edition

Shelves: business

Wired magazine editor in chief Chris Anderson follows the success of his earlier book, "The Long Tail" (about mining what might otherwise be seen as marginal endeavors to create great successes), with this exploration of how we can benefit in many ways--including economically--by giving things away. It's a great complement to Tapscott and Williams' "Wikinomics: How Mass Collaboration Changes Everything" in that it is a paean to the power of collaboration in our onsite-online world. Anderson's pu...more

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Apr 04, 2011 Dina Alongi rated it 4 of 5 stars · review of another edition

In his bestselling book The Long Tail, author Chris Anderson described some of the ways in which the Internet has influenced and changed our global economy. More specifically, he explained that the Internet has made it possible for someone to find whatever product or service they are looking for online. There is a limitless inventory, and demand for almost everything. In his new book Free, Chris Anderson delves deeper into the topic of e-commerce. Free is about a new phenomenon where businesses...more In his bestselling book The Long Tail, author Chris Anderson described some of the ways in which the Internet has influenced and changed our global economy. More specifically, he explained that the Internet has made it possible for someone to find whatever product or service they are looking for online. There is a limitless inventory, and demand for almost everything. In his new book Free, Chris Anderson delves deeper into the topic of e-commerce. Free is about a new phenomenon where businesses can profit more from giving things away than they can by charging for them.

The Internet has completely changed the way firms sell their products and services. Many businesses now conduct the majority of their transactions online. For example, in 2009, online booking reached 84% for Southwest Airlines. Companies can profit largely from online sales because the cost of doing business over the Internet is nearly nothing. Then there are other businesses that provide products and services exclusively online for free. Companies like Google and Facebook are two popular examples. They don’t charge users anything for their services, instead making money through advertising.

One of the reasons that companies can afford to give things away for free is because the cost of reproducing and delivering digital content is practically zero. For example, it costs pennies for ITunes to copy a song or YouTube to stream a video. The fixed cost of producing the first of something is high, but the cost of producing one additional copy is little to nothing. In other words, prices will inevitably drop to the marginal cost of production, which is practically zero for digital content.

For these reasons, Anderson explains that some companies can profit more from giving things away for free than they can by charging for them. By giving away one product, firms can entice a customer to buy another product. An example of this is Monty Python’s YouTube channel. They released some of their most popular skits on YouTube for free, and sales for their complete DVDs shot up. The free videos were great, but people wanted more! Another popular free service is email. Providers like Gmail and Hotmail offer customers free email, and in return get paid by companies for advertising. This illustrates how giving away things for free can benefit both consumers and businesses.

Perhaps what was most controversial about Anderson’s book Free was his declaration that this “free” business strategy may become essential to a company’s survival. On the one hand, I think there are other ways in which businesses can stay alive in this economy. However, if the competition is giving things away for free, a firm may be forced to do the same in order to compete. What’s more, people my age are accustomed to everything digital being free. I would not be happy if YouTube or Google started charging me a monthly fee.
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Mar 16, 2011 David rated it 3 of 5 stars · review of another edition

goes on too long and gives too many (similar) examples illustrating the widespread marketing of free stuff in digital/global economy, but on the whole an interesting take on a clear economic trend. Central point seemed to be that in a competitive market (which Internet fosters), price inevitably drops to, or near, the marginal cost of production, which is within rounding error of zero in the case of anything that can be stored or distributed online.

A lot of the writing is sort of a pep talk for...more

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Mar 29, 2010 Blog on Books rated it 4 of 5 stars · review of another edition

Three years ago, Chris Anderson set the world on it's ear with his first book, The Long Tail; the book that first addressed the marketing phenomenon brought about by the internet, of selling more of less. As editor-in-chief of Wired magazine, Anderson is rightly seen as one of the top prognosticators when it comes to the convergence of technology and society and it was with that in mind that hopes were running high for his latest undertaking (and one that the world was finally ready for) `Free:...more

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Feb 14, 2010 Julie rated it 3 of 5 stars · review of another edition

Shelves: business-and-society

I'm deeply conflicted about this book. Anderson's main argument can be summed up like this: as the price of processing, digital storage, and bandwidth continues to drop, prices -- especially prices online -- will trend downwards as well, towards zero. Free (as in, no price) is not just an option online, it's inevitable. Businesses now have to compete with free on a regular basis, and that competition is increasing. On the other hand, it's possible for companies to build business models that inco...more I'm deeply conflicted about this book. Anderson's main argument can be summed up like this: as the price of processing, digital storage, and bandwidth continues to drop, prices -- especially prices online -- will trend downwards as well, towards zero. Free (as in, no price) is not just an option online, it's inevitable. Businesses now have to compete with free on a regular basis, and that competition is increasing. On the other hand, it's possible for companies to build business models that incorporate free, and indeed many already have.

Anderson, an editor at Wired magazine, certainly has seen his fair share of both traditional and online media. And a lot of his arguments make sense. He's especially compelling when talking about "freemium" models, where a minority of paying users (sometimes as small as 5%) subsidize the majority of free users. I'm evidence of this myself: I have paid Livejournal and Skype accounts, while I use free web hosting for my blogs, watch free videos on YouTube, connect with my friends for free on Facebook, and subscribe to countless free podcasts. Anderson lists 50 business models at the end of his book that incorporate free in some way, all of them currently in effect and making money. So I don't want to argue with him on that count.

My problem is with the core assumption of his book, that processing power, storage, and bandwidth will continue to improve forever (and thus become forever cheaper), according to Moore's law. Moore's law has held for the last 40 years, true, which is why your cell phone has more computing power than a room-sized computer from 1970. But just because a trend has continued so far doesn't mean it will always continue, a fact that rings bitterly true to anyone who recently believed "housing values always go up." Sooner or later, computing power is going to reach its zenith and bandwidth will reach some practical maximum. It might not happen for ten years or a hundred years, but it's bound to happen. And when it does, all those businesses built on "free" are going to be in for a rude awakening. While Anderson ably rejects many objections to "free," he doesn't touch this one, and I find it a glaring omission in an otherwise extremely well-research and persuasive book.(less)

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Feb 02, 2010 Matt rated it 3 of 5 stars · review of another edition

I liked this, and as little as I'm qualified to judge books that talk about economics, I thought it was a really smart.

The basic thesis, as I understand it, is to examine the different kinds of free in economic terms, and also to look at the way the introduction of free changes the marketplace. Both ideas are pretty interesting, as it turns out-- as a reader, I'm more drawn to the wonky stuff about how markets respond to free, but I think the other stuff is key to understanding just which free y...more I liked this, and as little as I'm qualified to judge books that talk about economics, I thought it was a really smart.

The basic thesis, as I understand it, is to examine the different kinds of free in economic terms, and also to look at the way the introduction of free changes the marketplace. Both ideas are pretty interesting, as it turns out-- as a reader, I'm more drawn to the wonky stuff about how markets respond to free, but I think the other stuff is key to understanding just which free you're talking about.

The book itself was a little different than my usual reading: there are a fair number of charts and sidebars here, and as a reader, I'm not super-comfortable with that. I never know when in my reading I should be trying to ingest the info presented as a sidebar. But really, that's me.

Also, the tone of breathlessness that I take to be the hallmark of the Wired style is in full effect here. I want to call it hype, but that would suggest it's uncritical, which it's not, at least not entirely. But it is a weird glossing, running momentum that I remember from the magazine that feels a bit like technological darwinism, the sense that you don't need to get with the program, but this train is leaving for the future so you'd better get on board (to mix metaphors). There is, in this book, then, a kind of subject-less force that is almost a dialectic driving things, which I think is maybe obscuring some of what is happening here.... it's interesting because it might be a perfect match, to talk about markets and tech innovation, because both lend themselves to these ideas of invisible causes and etc. In both cases, I find myself a little suspicious and want to know who is doing these things.

It does offer an interesting rationale for a lot of things, maybe most notably what is happening with file sharing and piracy, and offers what I think is maybe the most thought out projection I've seen of where things are likely to go from here, in a economy that fully integrates "free bits."

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Dec 06, 2009 Kelley rated it 3 of 5 stars · review of another edition Recommends it for: Business analysts, product developers, people who like to point & laugh at new economy b.s.

Shelves: economics, it-busines-and-management

In Free: The Future of a Radical Price Anderson insists that the way to profit online is to give products away. Of course, the intent of such a proclamation is to startle people unfamiliar with online dynamics -- which makes you wonder what tiny portion of his audience is actually startled. Even people from established industries such as newspapers and network television already know that their products only *appeared* to be free or nearly free to the consuming public. Their product certainly di...more

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Nov 06, 2009 Billy Bush rated it 5 of 5 stars · review of another edition

Chris Anderson did a wonderful job with this book. It is fascinating to see the economic trends of today's digital age. What I find interesting with Chris as well is the fact that he is editor-in-chief of WIRED magazine, periodicals being one of the most damaged industries by "free". Chris, however, is embracing free and incorporating it into Wired's business model. He identifies many forms of free in the marketplace and how business models have and are being developed around it. A few reviews a...more

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Sep 08, 2009 Keith rated it 3 of 5 stars · review of another edition

Shelves: non-fiction

I read this book primarily because it was, well, free, and because Chris Anderson is a well known author due to The Long Tail (which I never read but heard a lot about). In the introduction he describes how as he researched the book he encountered two different reactions to it - the younger crowd (under-30 I think it was) thought that the ideas were basically self-evident while the older crowd thought that there was no such thing as free and that there is no way you could build a business model...more

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Aug 25, 2009 getAbstract rated it 5 of 5 stars · review of another edition

Witty, informative treatise on giving things away

Economists swear there is no such thing as a free lunch. Someone always pays. That may be true in the “atoms” world of physical things, but Chris Anderson explains why it does not apply in the “bits” world of the Internet, where “free” is the ruling paradigm. If, as Stewart Brand (founder of the Whole Earth Catalogue and the Whole Earth ’Lectronic Link) said, “Information wants to be free,” now it is, at least in many instances, particularly onlin...more

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Aug 19, 2009 Javier Celaya rated it 3 of 5 stars · review of another edition

A su favor es que es un libro entretenido, que se lee muy rápidamente, y que pone encima de la mesa un necesario debate sobre cómo las empresas deben empezar a redefinir sus modelos de negocio ante la inmensidad de contenidos libres y gratuitos que están disponibles en la Red.

En su contra, creo que es un libro con algunas contradicciones sorprendentes y demasiadas simplificaciones a la hora de argumentar y defender el modelo de gratuidad de los contenidos en Internet. Estas contradicciones hace...more A su favor es que es un libro entretenido, que se lee muy rápidamente, y que pone encima de la mesa un necesario debate sobre cómo las empresas deben empezar a redefinir sus modelos de negocio ante la inmensidad de contenidos libres y gratuitos que están disponibles en la Red.

En su contra, creo que es un libro con algunas contradicciones sorprendentes y demasiadas simplificaciones a la hora de argumentar y defender el modelo de gratuidad de los contenidos en Internet. Estas contradicciones hacen que la tesis del autor pierda credibilidad.

Creo que el autor confunde la puesta en marcha de estrategias de marketing y ventas basadas en contenidos gratuitos con la definición de modelos de negoci basados en la gratuidad. Chris Anderson defiende que el futuro de los negocios que utilicen Internet es ofrecer sus productos de forma gratuita. No crean que el autor plantea este modelo de negocio como una opción a considerar; su tesis indica que todas aquellas empresas que tengan como base Internet tendrán que optar por la gratuidad como única alternativa. Según el autor, Los creadores de contenidos en la Red -ya sean libros, noticias, música o cine, entre otros- deberán regalarlos en Internet y esperar obtener ingresos a través de la publicidad, patrocinios, intercambio de mano de obra, etc.

A lo largo de los últimos años hemos visto cómo el modelo de la gratuidad, que ha sido defendido interesadamente por algunas empresas y creadores de opinión, ha funcionado en unas pocas empresas, básicamente en buscadores y operadores de telefonía, mientras que la industria creadora de contenidos -ya sean medios de comunicación o editoriales- ha obtenido escasos retornos.

Creo que todas las personas que formamos parte de esta transformación digital, ya sean blogueros, evangelistas de la Web 2.0, emprendedores de la web social, docentes de escuelas de negocios o autores de libros, debemos ser más críticos y exigentes con los planteamientos de las personas que están definiendo directa o indirectamente el futuro de la sociedad digital.

No estoy hablando sobre si aciertan o no predecir el futuro, como economista tengo ya asumido que es una tarea imposible, más bien estoy señalando que debemos exigir a estos creadores de opinión una mayor coherencia en sus argumentaciones y en sus propias actuaciones. No pueden abogar por una cosa y luego hacer otra. Eso se llama incoherencia, ya sea en un mundo analógico o digital(less)

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Jul 31, 2009 Michael rated it 4 of 5 stars · review of another edition

A definite must read for anyone in the business world today. This book offers a history of Free, solid examples of how Free can help grow your business as well as a compressive look at how the net is using free to grow at an exceptional (and exceptionally profitable) rate. Ever wonder why Google gives you things like Gmail, Google Docs, Google Voice, Gcal and so on for Free, find out why.

The downside, while it touches on how Free can be applied to what Anderson labels as "atom" businesses, it r...more

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Jul 17, 2009 Joseph rated it 3 of 5 stars · review of another edition

I listened to Chris Anderson narrate this book for free (he made the MP3s available on his website), which made my commutes fly by. And I guess I'm proving him right by writing this review, but I can't help notice that I'm not buying a copy of his book now, whereas I otherwise would have. But Anderson's larger point is that digital goods inexorably fall to free, so it's time to get over it and use it to your advantage. As in The Long Tail, he does a good job of laying out the phenomena, explaini...more

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May 24, 2010 Zed rated it 4 of 5 stars · review of another edition

Bits (electrons) are the currency of much of todays information and entertainment--including software, music and literature. The costs of bits are trending towards zero, leading to a new economic paradigm.

This book is the history, psychology, and a modern view of how declining digital costs are fostering a new economy centered around reputation. The book itself is a product of the authors "Free" market ideas, ostensibly written using Google Documents and given away online.

I obtained the book fr...more

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Mar 27, 2010 Majid Alfifi rated it 5 of 5 stars · review of another edition

The author talks about free business models and how they work such as Google free services that make money from ads. I would suppose the book will be very useful to those who want to make start-ups as it should enlighten them of what business model they should follow. It's also useful but to a lesser extent to those who just want to know how several so-called "free" services make money. Some of the author's sayings I still remember :) (every new abundance makes a new scarcity) so a business mode...more

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Aug 12, 2009 Jake Forbes rated it 3 of 5 stars · review of another edition

I happened to stop by an internet café the day this came out so I downloaded it to my Kindle for, well, free. (It isn’t anymore). Much has been made of Anderson’s shoddy researching and citing, but that’s not enough to invalidate its value as a starting place for discussion and reflection. As a writer, I found Anderson’s approach to creator profitability to be a little dismal; when he does cite success stories in the creative world it’s almost always giants of their field, like Radiohead or Neil...more

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Aug 01, 2009 Mark rated it 5 of 5 stars · review of another edition

There are so many things I can say about this fantastic book, but I'd like to limit my comments to a few key points:

1) Anderson does an excellent job of defining "free" particularly in what it means to the business community.

2) He demonstrates the history of free (yes, the concept of using free to generate revenue came a LONG, LONG time before the internet) and how it has worked in the past.

3) He illustrates multiple concrete examples of companies that have made FREE work within our modern realm...more

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About Chris Anderson

Chris Anderson was named in April 2007 to the "Time 100," the newsmagazine's list of the 100 men and women whose power, talent or moral example is transforming the world. He is Editor-in-Chief of Wired magazine, a position he took in 2001, and he has led the magazine to six National Magazine Award nominations, winning the prestigious top prize for General Excellence in 2005 and 2007. He is the aut...more

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