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Mar 23
2009

A different approach to revenue streams

Posted by: mark

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The recent debate regarding Twitter's revenue model has been an interesting one.  No one yet knows what they will do, but it's clear that from their recent $35m investment, there is a strong belief that there is a profit to be made one way or another.

I believe we are now starting to see a shift in the way in which technology users pay for their applications and resources.  Instead of asking users to part with their cash up front, many of today's most popular applications are provided completely free of charge.  So how does this work?  There are a number of revenue models which are currently being used, but in my experience the most common are:

  • Linked or embedded advertising
  • Free basic product, but fee for additional feature set
  • Application free for a limited period of time

Each of these approaches has its own advantages and disadvantages, but they all follow broadly the same logic.  Maximise the user base and then use that to make a financial return.

At Learning Curve we believe in making as much of our content freely available as we can.  Although we have a responsibility to generate sufficient revenues in order to cover salaries and costs, it is our objective to ensure that as many teachers, pupils and parents have access to our products and resources.  We are currently looking at different ways in which we can make more of our resources free, whilst continuing to ensure that we have a revenue model in place to support our business.  Whilst this will clearly be a great challenge for us, I see this new landscape as a fantastic opportunity for Learning Curve to gain an even wider user base within education.


For the record, 10 of my most commonly used free applications are:
Twitter
Tweetdeck
Spotify
AVG anti virus
Audacity

Google (Chrome, Apps, GMail, Calendar)
VLC Media Player
Zattoo
PhotoFiltre
Remember The Milk

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