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Werbach on Business Model

Kevin Werbach wrote another great piece yesterday on the inversion of business models.  It’s about the way in which some businesses are providing the core service for free and charging for add-on’s.  "But what if the connectivity were free, the applications were free, and users paid only for the add-ons? Could that ever work?", he asks, and then cites Skype. 

As a thought experiment, this is a great read.  Connectivity isn’t free, with Skype, however.  And, the complexity associated with building a value chain based model around monetizing Skype add-ons, and paying the owners of the pipes from the revenues associated with the add-on’s is difficult to comprehend.

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