Ultra-Free Premium Strategy
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A strategy for monetization that focuses on giving away most content for free while charging premium prices for exclusive offerings. Based on Tim Ferriss and Alex Hormozi's approach.
Core Strategy Components
- Give away 99% of content completely free
- Treat free content like it's paid content in terms of quality
- Reserve 1% for ultra-premium offerings
- Build massive goodwill and audience through free content
- Monetize through high-ticket exclusive offerings
Key Benefits
- Builds larger audience than incremental paid approach
- Creates strong goodwill with audience
- Allows for premium pricing when monetizing
- Generates more total revenue than mixed pricing approach
- Opens doors for bigger opportunities long-term
Real Examples
Tim Ferriss's Implementation:
- Gave away blog content and podcast for free
- Charged $10,000 for exclusive 2-day workshop
- Generated $2-4M in 30 minutes of sales
- Called it "Open the Kimono" event
- Succeeded due to built-up audience goodwill
Alex Hormozi's Approach:
- Gives away valuable business content free
- Builds massive audience and credibility
- Monetizes through:
- Premium acquisitions deals
- High-ticket seminars ($25k per person)
- Potential for $10M+ single day events
Key Principles
- Always maintain market for luxury/premium offerings
- Focus on building largest possible audience first
- Deliver exceptional value in free content
- Don't dilute brand with mid-tier offerings
- Patient approach - play the long game
- Build trust and credibility before monetizing
Implementation Tips
- Create highest quality free content possible
- Focus on building audience over immediate revenue
- Save premium offerings for when audience is large
- Price premium offerings significantly higher than market
- Use scarcity and exclusivity for premium offerings
- Leverage goodwill for maximum premium conversion
56:20 - 57:57
Full video: 01:03:36SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.