Chris Anderson
16 key ideas across 2 books, each explained in our own words.
Free
- IDEA 1
Free can be a business model
Anderson argues that digital technology has made the cost of producing and distributing many products close to zero. This makes giving things away for free a powerful business strategy. Giving products away can therefore bring in money in other ways.
- IDEA 2
Zero is special
Anderson explains the zero price effect: people treat free very differently from cheap. Free attracts much more interest. Even a tiny price makes people stop and think, but free removes that doubt, so many more people try it.
- IDEA 3
Freemium mixes free and paid
Anderson describes freemium, where a basic service is free and premium features cost money. A small share of paying users supports the rest. Many apps and online services use this plan to bring in a large number of users.
The Long Tail
- IDEA 1
Niche products add up
Anderson argues that the internet has changed markets by making it possible to sell huge numbers of niche products. While a few hits sell a lot, the many products that sell a little, the long tail, can together equal or exceed the hits.
- IDEA 2
Online shelves have no limits
Anderson explains that online stores do not face the space limits of physical shops. They can offer millions of products. A digital shelf costs very little to extend, so even products few people want can stay available.
- IDEA 3
Hits still exist
Anderson notes that popular products still sell a lot, forming the head of the demand curve. But the tail becomes more important. The tail is made of the many products that each sell little but together add up.
Go deeper with Chris AndersonAsk questions, argue with the ideas and practise using them, free.
Open in the app