Cheap Software, Priceless Value

September 22, 2025

I believe B2B software will be nearly free within five years. AI coding tools are collapsing the cost of building, and competition will drive prices to near-zero.

But here's the thing: price dropping doesn't mean value disappearing.

The Monetization Shift

Companies will still make money. Just not the way they do now.

They'll monetize through data. Through scale. Through turning their clients into the product. The software might be free, but you're paying with something—attention, information, network effects.

Think about it: Facebook is free. Google is free. But we all know nothing is really free.

What This Means for Builders

For small builders and freelancers, this is both opportunity and warning.

The opportunity: you can build custom solutions for pennies that used to cost thousands. You can compete with enterprise software on features.

The warning: you can't just sell software anymore. You have to sell outcomes. Relationships. Expertise. The stuff that doesn't get commoditized.

The Real Question

As software becomes free, ask yourself: where is the real value being traded?

Because it's still being traded. You just need to know what currency you're working with.