Here is a nice write-up of why there are so many “free” services on the Internet (think Facebook, Google, your favorite newspaper) … There are people younger than me who grew up experiencing and thus expecting everything on the Internet being free. This leads some to believe that _everything_ “digital” should be free (Music, TV, Movies) – but I am not going there (today…).
For now read on if you are interested why the stuff is “free” – after all we all know there is no free lunch this post answers “who’s paying how”. As for myself, I increasingly find myself actually paying for stuff which I could get for free – I simply like this business model more.
Finally the actual post: it is by F-secure and can be found here: Free – good or bad?
Full copy follows now:
It’s always nice to get something for free. Or is it? There are really some free lunches on the net. But what appears to be free can have a hidden price, which often is paid by other means than money.
Internet did for a long time lack payment models and everything on the net was truly free. This was fine on a net that was an academic tool and playground for enthusiasts. Our Internet of today is totally different, and to a large extent business driven. But the culture of getting stuff for free on the net is deeply rooted. People are used to free stuff, or are hesitant to use payment on the net in fear of fraud. This has created a lot of new business models based on free products and services. Either genuinely free or with a hidden compensation. One of the important skills for today’s cybercitizens is to recognize these business models and understand the hidden risks and compensations. Read on to learn how.
Before you take the bait you should always ask yourself: Why is this thing offered for free? That’s the key questions as the vendor’s motives dictate if the product or service is safe to use. First look for info about who made the product and why. Then try to place it in one of the categories below. Now it will be a lot easier to make an educated guess about how safe it is.
A very common way to provide free products or services. Ads are showed to you and the vendor gets money from the advertisers. Be careful with ad-ware your children are using. You have no control over the ads and some content may be unsuitable. Otherwise these are mostly legit if you don’t find the ads too annoying.
“If you don’t pay for the product, then you ARE the product.” This is taking ad-ware to the next level. Big data companies like Facebook and Google offer their services for free, but create extensive profiles over their users and utilize them for marketing purposes. This is a privacy problem as you have no control over what data they collect and how it is (mis)used. Intelligence agencies are on top of that also eager to tap into your data. If Facebook knows something about you, then NSA knows too. The problem here is that it is very hard to know what price you really pay for the “free” service. You should consider if the privacy risk is worth taking for the value you get in return.
Hobby and ideological
Many create programs and web services for fun. Giving it away and seeing that people really use it is part of the joy. Some may also have ideological motives, like fighting corporate dominance, guarding peoples’ privacy or defeating net espionage. Products in this category are genuinely free and there’s no hidden compensation. The Firefox browser is an excellent example. The Linux operating system is another.
This “business model” is safe for the customer, but the products and services may not always be the safest choice technically. Providing safe software is a tough task and requires constant maintenance. Hobbyists are not always professional enough for this. In this category you will find a wide range of products with technical security ranging from excellent to very poor. It’s also futile to expect good support services in this category, unless the product has a well-working user forum that provides peer-support.
Donation financed, “begware”
This is a variant of the previous class. Some providers of free software ask for donations openly. This is like a product with a voluntary payment. A lot of people will use the product for free, but some will contribute a couple of bucks to cover the vendor’s expenses. Wikipedia is a good example. BTW, have you ever donated to them? I have and I think it’s very well spent money. The value I get in return is far greater.
Some free services are provided with tax-payers’ money. These are typically OK to use. Quality might vary tough, as the public sector often lacks the culture of customer service and competitiveness.
Upselling or service fees
Many vendors provide a basic product or service for free, and more functionality or capacity for a price. This is a nice way to let customers try it out and decide later if they need the paid version. Sometimes the product is entirely free and the business model is based on selling support services for it. There’s nothing wrong with this business model and the products are usually OK if the vendor is trustworthy. younited from F-Secure is a good example, like most other cloud services.
Getting something for “free” when buying something else is a common marketing trick. It’s not really a free product, the pricing scheme is just set up to hide its true cost. A common example is receiving a “free” mobile phone or 4G-dongle when signing up for a 2-year subscription. Hardware prices are declining and many people have a misconception that these bundled items are worth more than they really are.
Some content is offered to you free of charge and with no strings attached, but the distributor lacks the right to distribute it. Distributing stuff without permission is illegal practically everywhere, but your status as receiver is not as clear. Whether it is a crime to download the stuff depends on your country’s legislation. Also remember that the common peer-to-peer sharing networks, like BitTorrent, both download and share at once. It’s also common to distribute malware masqueraded as pirated software. The safest way is to look for the content’s original vendor or distribution point, and download it from there. Then you will learn if it really is free, and lose the malware as an extra bonus.
Scams and malware
Malware and scams are often masqueraded as free offerings. Be extremely careful if you are tempted to sign up for anything that sends you “free” information as text messages. Your mobile phone number is a payment method and scammers can charge you for bogus messages sent to your mobile. It can be next to impossible to get them cleaned off the bill. What you think is a handy utility program may also turn out to be malicious software. If you can’t figure out why the tool is free, the real reason may be to plant malware in your computer or mobile device.
Let’s finish with a checklist for people considering using a free service or product:
- Find out who made it. Check if the vendor declares openly why the product is free.
- Check if the vendor offers paid alternatives to the free version and how they differ.
- Try to figure out what category the free offering belongs to.
- Is the vendor trustworthy? You shouldn’t use software from untrusted sources even if it’s free.
- Finally consider if the free offering really is what you want. Sometimes it’s a great alternative to expensive products, sometimes you pay a high hidden price just to save a couple of bucks. And sometimes the free alternatives just aren’t up to the task and you would be better off with a professionally made product. Consider if it really is smart to save a couple of dollars and insert potentially unreliable code in the system with all your irreplaceable content?
- If you still are uncertain, search for user opinions on the net. The true free gems, like Firefox and Linux, have huge user bases and you can find a lot of info about them. Be careful if you have problems finding independent opinions about a free product you consider.