The arrival of the Internet and the information explosion it created has made it possible for inventors and entrepreneurs to build a business from scratch to worldwide marketing capability in a very few years. The authors of this book take the position that all too often we are deluded into thinking certain and tried and true economic principles have been abolished by this new Internet economy. They argue their position without jargon and with examples taken from the real world. While old pricing ratios and old pricing strategies may not apply in the information age, new pricing ratios and new strategies have taken their place.
Information goods can be costly to produce but cheap to reproduce.
For example, a copy of a 100 million dollar movie on videotape costs a few cents to make. These strategies involve methods for differing your product from your competitors, avoiding sky-high initial pricing that encourages competition, and customizing. Sometimes literally giving a product away works. A note inside told parents where the stores were. The development of digital watermarks has provided one tool for controlling piracy of your web presented material.