You begin with something for free to establish relationships and ubiquity. I call it following the free. Relationships are the currency of this new economy, and developing them becomes the foundation for a business. You establish a relationship, cultivate it and sell products and services around it, and you use technology to enhance, cultivate and develop these relationships. No matter what business you are in.
Customers complete the product.
Companies don't release software in beta because they are cheap or desperate but because having the customer complete the product is the only way to get something completely tailored for them. Whoever has the smartest customer wins. There is a drift in our society toward decentralizing institutions, technology and culture. The decision-making processes are shifting from a few people at the top to many people in the company and outward, even to customers. Rather than work against the power that's shifting things to the edges, embrace the swarm.