Flickr is an image and video hosting website and online community that allows users to share their photos and videos with others. Users can decide who sees their content, add tags and notes to organize and describe their media, and favorite or comment on other users' content. While originally focused on online gaming, Flickr changed its business model to focus on photos and adopted a freemium model where basic services are free while premium features are available for a fee. This approach allowed Flickr to acquire a large user base who generated valuable metadata by tagging photos, thus creating a rich user experience for searching and discovering new content.

1. Raul Hernandez Arthur Webmarketing ITESO Julio 2011

2. Flickr We want to help people make their photos available to the people who matter to them. We want to enable new ways of organizing photos and video. Raul Hernandez Arthur

3. Raul Hernandez Arthur Users Create Value Web 2.0 Takes a different approach on how business, customers and partners interact. 1980, Alvin Toffler’s best seller predicted the : Prosumer: Mix between DIY and Consumer Where the USER creates VALUE

4. Raul Hernandez Arthur What is Flickr ? Flickr is an image and video hosting website web services suite and online community. The service is widely used by bloggers to host images that they embed in blogs and social media. Flickr members upload more than 3,000 images every minute, and last September 18th, 2010.The five billionth photo was uploaded!

5. Tell a story with your photos Tell a story with your photos and allow whoever you want to comment. Add notes to explain or comment right on the photo. Favorite the photos you like best to easily find them later, and see who has favorited yours. Add people to your photos for your reference, and so they can see what you've posted. Add tags to categorize your photos and to help others find them in searches. Raul Hernandez Arthur

7. Expand your options with a Guest PassIt's easy to find people you know on Flickr Search by name or email Import your contacts from Yahoo! Mail, Gmail, or Hotmail Invite your friends Raul Hernandez Arthur

8. Raul Hernandez Arthur Quick Note: Flickr actually CHANGED their business model From online gaming to photo base

9. Raul Hernandez Arthur Freemium Give your Service away for free Even Ads are optional Acquire lots of customers Network Referral Search Offer a priced, enhanced version to customers

10. Freemium Basic Web services, for free Charging a premium for advanced or special features. The word "freemium" is created by combining the two aspects of the business model: "free" and "premium". Raul Hernandez Arthur

11. Start Up Cycle Have a great idea. Raise money to bring it to market ideally free to reach the largest possible market. If it proves popular, raise more money to scale it up. Repeat until you're bought by a bigger company. Now steps 2 through 4 are no longer available. So Web startups are having to do the unthinkable: come up with a business model that brings in real money while they're still young. Raul Hernandez Arthur

12. Raul Hernandez Arthur Some Freemium Cases Adobe Macromedia Skype Flickr Pandora Most Freemium companies see a 2 - 5 % Convertion Rate

13. Pandora Launched in August 2005 Users got 10 hours of free online radio at signup, after which they were asked to pay $36 per year. “In the first couple weeks we had 100,000 people come through and the vast majority listened to every last minute of their free ten hours” As of IPO, Pandora had 80,000 artists, 800,000 tracks in its library and 80 million users. Raul Hernandez Arthur

14. Raul Hernandez Arthur Flickr Accumulating Positive Network Effects TRAFFIC click Browsing Popularity Digital Photo Flickr browse tag Editors / Tags Tech Enthusiast keyword comment Bloggers Using pics Sofisticated Filter, Ranks

15. Raul Hernandez Arthur Growth Reaching and Tagging Each user creates value ! The core value Dont build applications, build context for interaction

16. Raul Hernandez Arthur 2005 Fast Company Winner Created the largest and best organized online photo library. 1.8 million images 81% of them are public 85% have human-added metadata

17. Raul Hernandez Arthur Open Up Digital Content to Global User Interaction Boom of the Digital Picture

18. Raul Hernandez Arthur Better Search through User-Generated Information Underlined Book Tags Footnotes Annotations METADATA

19. Raul Hernandez Arthur Groups Flickr was a leader in creating photo image metadata to group

20. Raul Hernandez Arthur Catalyze and Amplify Social Network Effect Flickr owns a dynamic algorithmic means for rating, sorting and finding photographs.

21. Raul Hernandez Arthur DIY Syndication Flickr was the first-mover in providing self service tools for web 2.0.

22. Raul Hernandez Arthur Long Tail Democratize the Tools of Production Democratize the Tools of Distribution Connect Supply and Demand