Final answer:
A free business model pattern is an approach where businesses offer free products or services to customers and generate revenue through alternative means. The three types of free business model patterns are freemium, ad-based, and data collection models.
Step-by-step explanation:
A free business model pattern is a method or approach that businesses use to generate revenue without charging customers directly for their products or services. In this model, the business typically provides free products or services to customers, while finding alternative ways to monetize their offering, such as through advertising or data collection. There are three different types of free business model patterns:
- Freemium Model: This model offers a basic version of a product or service for free, but charges for premium features or additional functionality. For example, a mobile app that offers free basic features but requires a paid subscription for advanced features.
- Ad-Based Model: In this model, the business provides free products or services to customers, and generates revenue through advertisements. An example of this is a free streaming platform that displays ads during video playback.
- Data Collection Model: This model provides free products or services to customers while collecting their personal data, which can then be monetized by selling the data to third parties. For instance, a social media platform collects user data and sells it to advertisers for targeted marketing.