I'm a great fan of Homestar Runner. Have you ever considered their business model? Here is an animation website that provides you with literally dozens of cartoons and short clips - all absolutely free.
But venture down to the store, and you'll discover that they're also selling DVD's. That's something to seriously consider for a moment. I think it's an excellent example of the internet and the long tail economy. Is there a Homestar Runner Model for us to study and/or adapt? Hmm.
I think the genius of the internet is that is completely turns the traditional business rules on their head. Traditional strategies for the old economy will get you killed in the new one. Where else could such a crazy idea - hey, let's give the store away for free - lead to profit and success?
So, what are the lessons here? Any takers?