Nonprofits and the Economy of Free
My RSS feeds of late have been delivering to me many interesting posts by Chris Anderson as he explores the different kinds of free. I’ve been specifically interested in his visualizations of the Advertising Model of Free: advertisers pay for advertising, which subsidizes programming, which is then given away for free, with the goal being that consumers will purchaser those original advertiser’s products. There is a great explanation of how broadcast advertising works in the Denver Open Media’s Opening Access video (at about the 1 minute, 30 second mark).
Chris Anderson’s graphic of the same thing is below (C is Consumer, P is Producer, A is Advertiser):

This model of Free is very similar to the standard nonprofit model of giving: Foundations/Donors (D) provide support to Nonprofit Organizations (NP) which then provide free services to Clients/Constituents (C):









