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February 01, 2005

Scarcity economy to ubiquity economy

Here are 2 illustrations that show how I am thinking of this. Traditionally, we had to charge music 'users' to buy a record, visit a concert etc, because the space (or the unit run) was limited - we put the tollbooth right at the entrance, and everyone that wants in must pay. In a digital economy, we can't really do it that way any longer - space (unit run) is UNLIMITED and we therefore can't put the toll-booth (i.e. the cash register) right at the gate; in fact, there are few gates left to set up at, and the user can find other ways to 'get in'. Therefore, we must TIER the monetizing proUbiquity_economycess, allow free discovery and exposure, then charge a little to get a bit more, and upsell all the way to the top....!   
Scarcity_economy

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