We all know that free traffic/members are of value, but this study offered some great insight on how to measure roi, and how to measure which areas to invest in in order to best monetize the free customer. You need to buy the magazine or subscribe online to read the full article, which I highly recommend. The studies were based on online business models and can apply to all adult online biz models as well. As a content broker I was able to apply the info to my content store.
Here's a small excerpt:
Customers who pay little or nothing and are subsidized by another set of customers are essential to a vast array of businesses, including shopping malls, real estate brokerages, information technology providers, auction houses, print and online media, and employment and dating services. According to one estimate, this business model accounts for a majority of the revenues of 60 of the world?s 100 largest companies.1 With the explosion in the number of free services offered on the internet, the prevalence of so-called two-sided markets is likely to grow.
You can read more of the executive summary at
http://harvardbusinessonline.hbsp.ha...scriber=t rue