One of the most interesting and unique economic phenomenon to emerge over the last 10 years is the impact of technology in creating products that are free to the consumer.  Chris Anderson writes about this in his book entitled “Free”.  The most unique aspect of this business model is that it generates tremendous profits for those who know how to use it correctly.
Typically, the advent of a “free” product or service is a sample that is intended to give consumers a taste that entices them to pay for the products …

Most people who have not been taking up residence in a cave are aware of Groupon, the web’s #1 group buying site and fastest growing company ever.  The notoriety of the company grew even greater when it turned down a $6B takeover bid by Google.  Many consumers are aware of the extremely low prices that are available through Groupon daily deals, but there is a basic problem implicit in its business model that may so the seeds of disaster for the small businesses that Groupon depends on for its revenue …