10:00AM Sitting in the front row listening to The Future of Free; Chris Anderson discussing supply and demand on the Internet and how to get value by giving things away
10:09AM Our language reflects what we think of the concept of free in that there is both “good” free (liberation) and “bad” free (come-on) but there is no “free” lunch (so to speak)
10:14AM The different types of “free” that make up the freeconomy
Cross-Subsidy: see King Gillette and the disposable razors. It’s about loss leaders; give-a-ways; disposable products
Too Cheap To Meter: See Moore’s Law of Diminishing Costs – ever-cheaper inputs yield ever more complex products that can be made for next to nothing; telephones, gas, electricity, computer memory, computing power, Internet bandwidth
Ad-Supported Free: This is 3rd party subsidization – i.e. TV, Radio, Internet – and it is the model of the 20th century (the one we all know)
Allen Kay > developed graphical user interface at Xerox Park > used by Apple and MS Windows > lead to Tim Berners Lee and HTML > gave us the WWW > what’s next?
10:38AM Moore’s Law leads to novel and “wasteful” ways to use technology – which can change everything – the Internet is all about waste, new ideas, frequent failure, occasional successes, and the cycle
Technologists have only one legitimate job >> make it cheap and fast then get out of the way and let the crowd decide how to use it. Don’t try to tell us what to do because you can’t see the forest for the trees.
10:48AM The rule in the “free” Internet economy … marginal cost = zero, so in order to make money you must give it away in exchange for the new currencies of attention and reputation [the Internet leads the way here]
Attention = links
Reputation = page rank
The new paradigm: give away 100 to covert 1 and still cover your costs
10:57AM In the Q&A session Mr. Anderson answered my question about converting groups of professionals and other scarcity-based “knowledge workers” like Attorneys, CPA’s, Physicians, etc.