Published December 13, 2000
Bargains are good, but free can be very costly. Internet’s advertisers and promoters want your money. To get it, they entice you to sign-up for something free. But is it really at no-cost? Run! It’s a trap.
How can giving away free computers, Internet access or email accounts help a business to be profitable? Somehow that business model will cost you something. Instead, consider it a bargain coupon, something offered or acquired at a price advantageous to you, the unsuspecting buyer? Inspect it closely.
A free email account is not free. Free web storage is not without fees. Free business products and services are a hook to attract you into considering their pitch. If you find yourself thinking, “Wait a minute; I’m here for the free stuff,” and you’re presented with a purchase plan—click someplace else.
The American Heritage Dictionary defines the term Free as meaning “…without charge, costing nothing; not controlled by obligation, affected or restricted by a given condition or circumstance; not subject to external restraint.”
Regrettably, free in the commercial Internet world has been altered to mean, “prepare to pay.”
Ameritrade banner: “25 commission-free trades.” If this were true, no conditions would be imposed. Instead a long set of prequalifications and a pledge of your money is involved. Now that you know this, is it still free?
Here is a legitimate but costly bargain: “11 Free Music CD’s. Buy Just 1 CD from GMB Music Service and get 11 additional FREE CD’s. That’s it. Nothing else to buy!” —Yes, but there just happens to be a sizable shipping and handling charge for every CD sent.
Requirements to be met for your freebee include membership fees, large proprietary software to be downloaded on single platforms with costs for service calls, long distance charges and contract terms with noncompliance penalties.
After a lengthy wait for service to startup, expect slowness or busy signals and the inevitable ads in your face. You may be required to submit a bi-monthly questionnaire and refer three prospects per month to continue receiving free service. Also accept that your name and email address will be sold or traded to spammers (unsolicited-email senders).
Targeting the enormous Internet market, advertisers pump banner ads to the Web and bulletin board announcements onto Usenet Newsgroups. The give-away email accounts are designed to enlist unsuspecting subscribers for promoting the service providers’ message in all emails. Hotmail, Juno, FreeWWWeb, Freecall, StartFree, FreeNet, ACN, and hundreds of others disguise it as “no-cost.”
Ads in email is considered rude, discourteous and annoying, and should be avoided, especially for business communications. The going rate for a legitimate, à la carte email account anywhere on the Net is about $5/month or less. Five megabytes of file storage for Web pages costs about another $5/month. For that small amount you can remain anonymous and be truly free from contractual constraints.
Increased traffic, for free services, was expected to reciprocate increased sales. Just the opposite has occurred. The cost of furnishing the equipment and bandwidth has been a financial drain. Those who opt for the free services have been too price-conscious to buy anything. Others, repulsed by the ads, chose not to patronize them.
Remember the day when gas stations gave away—at no obligation—free road maps?
AltaVista’s affiliate company, 1stUp, had been providing free internet access since early 1999. These three million users consented to viewing a permanent advertising window on their computer screen for the benefit of a no-cost dialup Internet connection. 1stUp has failed and their owners, CMGI, Inc., are closing that division. AltaVista’s spokesman said that while the free service had helped drive traffic to its site, it never generated revenues.
Merrill Lynch analyst Henry Blodgett wrote, “Offering access, whether paid or not, is extremely difficult and expensive.” FreeiNetworks has declared bankruptcy. NetZero’s stock has dropped to 7% of its former high. MSN never adopted a free Internet service but raised its prices instead. Similarly, the Wall Street Journal (WSJ.com) continues to charge a fee. Napster, once entirely free is starting to charge membership fees.
ZapMe.com gave computers to schools upon condition of placing advertising on them directed at children. Within a year, advertising revenues shrunk so the company is demanding 2300 schools pay for the machines or return them.
At YesFree.com, their disclaimer reads: “The offers listed are provided by outside companies and individuals. We do not claim, nor do we know, if any of the offers are valid or free. Use your judgment and contact the companies at your own risk. They may limit the quantities or remove them at any time. Any minor should consult their parents before giving out any information in order to receive offers over the internet. The links provide on this web page are for informational purpose only, and we do not warrant them in any way.”
Let’s support those companies that do a good job, and avoid those who do not. “Profit is a good thing,” slogans an online service. Without it, business is swiftly short-lived.