As I discussed in the post "Will the paid media model be a donation one?" there is no "one size fits all" solution when it comes to transaction technologies. We need different transactions technologies to capitalize on the many different reasons consumers will be willing to pay.
Nieman Journalism Lab posted about Micropayment and the power of free, presenting a case of a software product which used micropayments and free to drive trial of a new product. The case is presented as an example which could be analagous to selling media.
My response, as I've pointed out in other posts, anyone who says they have THE answer doesn't have THE answer:
I appreciate that you are looking at both sides of the issue. But anyone who thinks free is the only way to get attention is overlooking other possibilities. There are so many. And the fact is that you need to develop a situation that is right for your product, target, market. Anyone who tells you they have the "one size fits all" answer does not have an answer.
For example, marketing a new technology product requires
education while marketing a new music band requires referral. A new tech
product is a higher risk purchase than
the other. Technology can be more
expensive, takes more time to adapt to, can screw up other technology, etc.
etc. Music is relatively low risk. A
friend whose taste you like refers a song to you. For $.99 you download. If you don't like it, delete it. You may not
be so quick to bite on that friend's referral again.
To accelerate success requires finding the core target who has the fewest hurdles to overcome. For example, a new tech product should start with people who will learn fast, e.g., someone who is likely to have intimacy with the problem the technology solves. In the case of Music - start with fans of similar artists.
Anyone will try anything that is free. Whether they need it or not. Whether they understand why they need it or
not. Whether they like other things like
it or not. So the fact that many people
will respond to a free offer may be absolutely meaningless.
However, if someone will pay a micropayment, you know you have someone who is interested and curious. Anticipating what to communicate to an interested/curious person is a lot more effective then if they try the product for free.
Marketing in a highly competitive, evolved marketplace is a challenge that requires strategic thinking and hard work. There are no easy answers.
