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Old 03-09-2013, 09:09 AM  
signupdamnit
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It's all very simple and fundamental to business theory. There exists a point of maximization.

Distributing free content leads to more potential customers being exposed to your product.

But as you distribute for free more of the very same product which you are trying to sell you also reduce the tendency for a given potential customer to buy.

On one extreme no buys because they don't know you exist. On the other extreme everyone knows about you but no one buys because they can get it all for free.

There is a point where things balance for maximum profits.

This concept is hardly revolutionary or difficult to grasp.

It's common sense to realize "Just keep posting 12 minute HD videos by the thousands forever" is eventually going to cross the maximization point. What that means is REDUCED earnings. OTOH if you're the tube it's fucking great if people post thousands of 12 minute videos. You can't lose (at least until your traffic becomes worthless). You're not paying for the content and you're not losing sales. The people posting the content are.

That's all I have to say on it. Listen to me or don't people. Your call.
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Last edited by signupdamnit; 03-09-2013 at 09:13 AM..
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