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2. Indirect
Indirect pricing involves the shifting of cost from the consumer to another entity. Although most consumers describe sites that utilize indirect pricing as "free", the cost, although not implicit, is still present. Most often, the companies that use indirect pricing methods are the same ones that distribute informational based products and are paid through selling web-advertising or through the benefits received later by increasing brand awareness. Many businesses that are already successful at peddling information-based products usually feel quite at home doing this on the web.
The entertainment and celebrity magazine, Entertainment Weekly, which is owned by Time Warner, is an excellent example of how to create an indirectly priced on-line magazine while not losing subscribers to its print version. To achieve this, Entertainment Weekly publishes only portions of its print articles on-line, and to counteract this deficiency, it instigates a value-added approach by allowing the site visitors to leave their own opinions on the articles which can be read and responded to by other visitors. Through the stimulation of conversation, Entertainment Weekly encourages repeat visits which not only increases brand awareness, but increases the visitor's exposure to the advertising it sells to other large corporations. |