3 ms·
If your fixed costs are high and your marginal costs are low as is usually the case with software, your incentive structure is often strange. Giving stuff away
by netcan 17y ago
If your fixed costs are high and your marginal costs are low as is usually the case with software, your incentive structure is often strange.
Giving stuff away doesn't cost you much. The downside is that if people already got it free, they won't want to buy it. So, vendors look for little worlds where they can give away software without cannibalising other sales. Let people use it, get comfortable to it and develop a preference for it. When they move on, the vendor hopes they will keep using the product, even if they have to pay.