Business Models for Free Digital Goods and Services

Abstract

An increasing number of companies is offering their products and services online of charge. As the basic service is offered for free, in order to generate sufficient revenue, ever new ways of monetization need to be explored. One way to generate additional value is to try to exploit the user base and the user data available. Further, businesses try to create completely new business models by mixing and matching business model components. As free can have such a substantial impact on companies' business models, it is important to investigate business models of digital goods and services in more detail. We conduct a structured literature review and present the corresponding business and revenue models discussed in literature. Further, we summarize the research on revenue models regarding different kinds of digital goods and services.