Summary of “Who Has The Best Business Model”

Why Pay When Someone Else Will Pay For You?For most of the company’s history, Microsoft has earned its considerable profits from a direct sales business model.
Customers of Microsoft’s products were also the people who purchased them and paid Microsoft directly.
The Internet brought forth an entirely different way to charge for your products: making them advertising supported.
One company took advertising to frightening new heights by using the Internet to funnel the half trillion dollar global ad market in ways previously unimaginable.
While foolish in hindsight, at first the wave of ad supported companies was something Microsoft could justify ignoring.
Then Facebook came along with growth unlike anything ever seen before to create an advertising duopoly with Google as all Internet activity flowed through the front doors of those two companies.
Companies that had the audacity to charge users directly would succumb to their “Business with a reputation for bad economics”, as you just can’t out execute someone with a better business model.
Simply put, how does a company that charges users directly for a product, compete with a company that finds someone else to pay indirectly for the same product?

The orginal article.