Jan Kubr

A link visited: Why are we charged for Wi-Fi?

In Uncategorized on January 1, 2008 at 20:06

A while ago I was wondering why you need to pay for a Wi-Fi access at the Amsterdam’s airport. Seth Godin explains the idea behind it in Nickel and Diming:

“Wifi is a great example. The marginal cost of hosting one more person on a wifi network is as close to zero as something can be. Charge people more than $10 a day and suddenly you’re making hundreds or thousands of dollars of extra profit.”


“I have no doubt that this works in the short run. It might even work out to be a viable marketing strategy in some markets. However, the alternative is worth considering. Not only do everything you say you’re going to do, but do more.

Offering low marginal cost items for free is a shortcut to generating word of mouth, which is a lot cheaper than buying ads.”

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