Why is Abundance Increasing?
- Consumers will try and obtain the best value. Value can be defined as usefulness
divided by cost. As the cost goes down the value increases. If there is no cost,
the value increases without limit.
- If there is no cost to obtain goods and services, the real cost to the
consumer becomes their time and attention. They must make a decision not about purchase price
but about the best use of their limited time and attention to consume competing free and abundant
products and services.
- Companies must compete to create products or services that have a better value
in order to be given consideration in the marketplace. Better value means that it
allows a better use of the consumers' limited time and attention.
- Network effects and Web 2.0 methods create more as they are consumed. The more
they are used, the more that is created.
- Free and abundant tools allow more free and abundant goods to be created.
- Advertisers know that free things attract attention. It is easy to advertise
free goods and services because word of mouth advertising increases and it is
generally the most effective form of advertising.
- The reproduction and distribution cost of digital goods and services is almost nothing.
- In order to stay competitive even long established newspapers, magazines and other
publishers are making their content freely available on the web.
- Free online books increase sales of the printed form of that book.
- Free music downloads create a following and increase ticket and album sales for artists.
- Free services such as email, blogs, and office tools are increasing because
it is more profitable to give them away than to sell them. More free services will be
made available in the future.
- Free software is competitive and often superior in performance to purchased software.
Most of the web runs on free and open source software.
- Numerous ways have been developed to make money by giving giving away products and
services. The more that is given, the greater the amount of money that is made.
Examples of successes include Google, Yahoo, YouTube, Instagram, FaceBook, Flickr and
millions of other websites and companies.