Zecco, a finance community website still in beta, has announced plans to begin offering trading on their site. Not only that, but they will be offereing the trades at exactly $0.00 commission. That’s right. Free Trades!
The trading begins on October 9th. I wouldn’t expect too many deals like we see with a site like sharebuilder, but it only takes 10 trades to make up the difference.
Our model is different. We run a lean operation, use the latest technology and rely entirely on word of mouth, guerilla marketing, viral campaigns and public relations to get the message out. As a result we can look at the $2 per trade as the cost of doing business – and still turn a tidy profit
They plan on making up the $2 a trade in advertising revenue which has become a very popular business model lately.
Other things that can be found on Zecco right now are free blogging, free forums and what looks like quite the burgeoning community of financial minded people.
[tags]zecco,commission,trades, free trades[/tags]
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Yep, Zecco is relying on word of mouth all right – a whole bunch of bloggers got put on their Google group that they intended to use to spam us with unwanted press releases. If they had sent out emails abou this, it might have been one thing, but it was something stupid about sponsoring a Formula 1 race.
I guess I can’t comment on that as that’s the first time I’ve heard of it. I heard of it through the grapevine of word-of-mouth so it really might be working out for them.
Zecco – Is “Free” a Business Model?
The hot startups today all seem to have one thing in common today – they all have “FREE” as a business model. That is why when I read about Zecco.com, the free online stock trading site backed by the funder of Skype, my eyes rolled over. Have I heard this story before or what? Once and for all entrepreneurs, I would like to address the question that is on every Web 2.0 entrepreneur’s mind: Is “FREE” a business model?
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