How to Make Money on Wi-Fi

Looks like the Starbucks method of Wi-Fi access is a dud. According to this Wired article, Starbucks stores average less than 2 customers per day. That’s because they charge $6/hour for access. By contrast the companies that give Wi-Fi access away are using it to lure more customers:

If you want to see the right way to serve wireless access, find a Schlotzsky’s Deli. The Austin, Texas-based sandwich chain figured out the secret of making money from Wi-Fi: Give it away. Schlotzsky’s lets anyone sign up and use its network free, even if they don’t come in for a sandwich. The chain advises its 600 franchise owners to beam Wi-Fi signals through the walls into nearby hotels, parks, and college dorms. Such complimentary access points are popping up everywhere, from Buck’s, a roadside restaurant in Woodside, California, to the Portland Harbor Hotel on the Maine coast. And why not? Giving away wireless broadband saves on billing costs, attracts customers, and creates an instant competitive advantage. Buck’s owner Jamis MacNiven, who serves buttermilk pancakes to some of Silicon Valley’s top venture capitalists, has the perfect rap on the topic: “Charging for online usage would be like charging for salt and pepper.”