Rory Sutherland Rory Sutherland

The Wiki Man | 9 May 2009

A fortnightly column on technology and the web

issue 09 May 2009

I have just passed a pub in Gosport. ‘Beer garden with free gas barbecue’, reads a notice outside. ‘Bring your own food.’

Perhaps the landlord has just been reading an advance copy of Chris Anderson’s upcoming book Free, subtitled Why $0.00 is the future of business. This book (an expanded version of a Wired article at http://tinyurl.com/2okqbk) suggests a new business model has arisen where companies, rock bands and publishers give things away at no charge in order to make money somewhere else.

In truth there is nothing new about this — since Hogarth’s time pubs have experimented with cross-subsidies, offering free straw or, latterly, peanuts to attract customers or make them thirsty. Anderson mentions King Gillette, who a century ago gave away handles for his razors in order to make money selling the blades. Free handsets for mobile phones are a modern equivalent.

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