MWilliams83' Digital Marketing Learning Journal

An educational pursuit and personal journey

Monday, August 24, 2009

Week 4- Article: "The Economics of Giving it Away," The Wall Street Journal, Jan. 31, 2009.

This article really highlights the concerns I brought up over most internet companies' current business models. The article says some internet companies, weren't even using advertising as a business model, but rather "free." Meaning they intended to give away their goods and services for free, to build brand equity and recognition, so they could be brought out by a larger company for a huge amount, and leave it to that company to actually make the business profitable. But now that the economy is in a downturn, so are the number of investors and potential buyers. So companies are having to determine ways to take there free offerings and turn them into profit.

Who would have thought that a business might have to actually make a profit at some point? (Even if they are on the internet and known by millions of people! :) )

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