The New Business Model: Live Free or Die?

WIRED Editor-in-Chief Chris Anderson’s first book, The Long Tail: Why the Future of Business Is Selling Less of More, quickly became a national bestseller, and his “long tail” theory embedded in the language we use to describe business on the Internet. Anderson’s new book, Free: The Future of a Radical Price (Hyperion), drops next Thursday July 9th, and the debate is already raging amidst the business community – and amongst media journalists in particular.

In a review in the New Yorker, Tipping Point author Malcolm Gladwell makes free with his criticisms of the new book. He calls it “essentially an extended elaboration of Stewart Brand’s famous declaration that ‘information wants to be free,’” and finds fault with a number of the examples Anderson uses to support his argument in favor of the rise of the freemium model (e.g. basic services for free + paid premium features).

Gladwell  – who is, of course, a journalist by trade – takes particular issue with Anderson’s thoughts on the future of journalism, which Free describes as looking something like, “paying people to get other people to write for non-monetary rewards.” Gladwell clearly regards this volunteer-driven approach to journalism as cavalier, and argues that the Wall Street Journal – which charges for niche content, but makes other content available for free – flies in the face of Anderson’s advocacy of free as a business panacea.

Oddly, Gladwell seems to overlook the fact that the WSJ is actually a testament not to free, but to the freemium model that Anderson is arguing in favor of, as a recent article in the Guardian notes. Anderson has already responded to Gladwell on his blog, and the comments section is turning into a free-for-all.

Regardless, the freemium future that Anderson envisions has to do with a lot more than just journalism – it’s already the basis of numerous web 2.0 products, from photo site Flickr to the telephone calling tool Skype. Whether you’re a skeptic or a freenik, Anderson’s book should be on your summer reading list – especially since it won’t cost you a penny. In addition to the hardcover, a free ebook becomes available next Thursday.

This post by J.K. Glei is based on research by the Behance team, which runs the Behance Creative Network, the Action Method project management application, the Creative Jobs List.

**Image via the New Yorker.