The Free Versus Paid Debate

There is often heated discussion regarding the notion of paid for web services versus free web services available on the Internet. For an aspiring web start up with even the most cracking good technology this is an important consideration as generating finance through attracting investment, in an increasingly competitive market, and generating interest through social media is valuable and essential for growth.

In an environment where many things have "free" alternatives (often supported through advertising) – how is a web start up supposed to compete? One case in point could be Microsoft Office versus Open Office or Adobe Photoshop versus GIMP or other graphic editing programs.

To sum up the debate here are some of the articles that caught our eye:

• CNET: Free versus paid spyware, virus, & security software
• "Free" is Killing Us–Blame The VCs
• Freetards ruining the web?
• Freetard economics
• An Idea That Really Clicked
• Do You Need Free or Paid Web Hosting?
• NY Times: The Free-Versus-Paid Debate for Online Web News Heats Up

The obvious answer is to offer something unique or novel but how soon after launch will a fantastic free alternative appear? Probably not long; the me too culture of jumping on the bandwagon pervades across the Internet and with good reason – the Internet breaks down most barriers and crossed many borders evening up the playing field for everyone.

Just look at the choice of search engines, social media, bookmarking, photo sharing sites out there. Many of these sites offer similar services and many of the popular ones offer these services for free (often supported by advertising) and continually broaden their services in order to gain and retain site visitors.

So what is the answer? Can a new web start-up really compete on the free-web?