They publish college text books under a Creative Commons license and let students access them for free. They then make money from selling complimentary products like printed versions and study aids.
What Do They Do
Publish college textbooks.
In the initial production of the book they work in a way that is very similar to traditional textbook publishers. But instead of printing one version of the book, they are put online under a Creative Commons license. This makes it possible for everyone to read for free and lets professors compile the book that best suits their classes.
What Is the Business Model
Giving their initial book away for free, they sell a range of complimentary products. You can buy a paper version of the specific textbook compiled by your professor. Besides this they sell a range of products.
Conversion Percentage
Having just started up, they are counting on 80% of the free users buying something and that they will spend an average of $27 per purchase. This relatively high number should be spread over a wide range of products – from the $60 full color printed version of the textbook to the $1 dollar audio study guides.
From having done a closed beta test they seem confident that they can meet those numbers.
Experiences
According to them, they are getting a very positive response from everyone they talk to, meaning all those involved. For all the students, the professors and the textbook writers, their model seems to be a welcome alternative.
A Lesson for People Looking Into a Similar Model
Find something that people will really use. Have the option to create product digitally and give them away. It is easy to get excited about the possibilities. It is important to find a pain to relieve. A problem or task that people have, which you can help them solve more easily.
This is also true for the complimentary products. Initially Flat World Knowledge was planning to sell tools that engaged the student in learning. However, after talking with a lot of students, they found out that what they wanted was efficient learning.
see Flat World Knowledge for more information
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