May 14, 2008

How Come Free Cell Phone Ringers Are Free?

If free ring tones are free how does the company make any money?

Cellphone ring tones are big business, worth billions of dollars. There’s a stack of companies out there selling ring tones and ring tone subscriptions. They turn over big bucks.

So why are internet ring tone consumers able to download free ringers? If they’re free doesn’t the company go broke? How can they make a profit buy offering cell phone ring tones for free?

Well the answer to that is that there are very many different business models out there. The internet is a fabulous resource, and it allows so many companies to exist, and to make a profit, by making their money in so many different ways.

There are a stack of companies doing very well by offering to give stuff away. They do it because they can attract a large number of visitors to their website when the visitors are able to get free stuff. If they don’t have to pay they come in droves to get something that they have to pay for elsewhere.

A website that attracts large numbers of visitors can make money without selling anything. They do this in a number of ways, but the main one is hosting advertising. They get paid for the advertising you find on their site. And sometimes they can make more money selling advertising than selling, say, ring tones.

So that’s why there are so many companies out there giving away free cell phone ringers, or for that matter lots of other stuff for free. They still do very well, they just have a different business model than the more traditional model of selling stuff like ringtones. It works for them.

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