BVRE vs. AVRE Business Model: The Two Core Economic Models Powering Free and Negatively Priced Products
- Josh Cliffords
- Oct 3
- 4 min read
Introduction: The Economics Behind Free & Negatively Priced
If you’ve ever wondered how a company can give away water, food, or even transportation for free — or better than free — the answer comes down to two simple but powerful frameworks: BVRE and AVRE.
These acronyms describe the two main ways free and negatively priced products generate revenue. Once you understand them, you’ll see how nearly any product on Earth — from bottled water to iPhones — can be delivered at zero cost or negative prices to the consumer while still funding profits, donations, and innovation.
BVRE: Below the Value of the Real Estate
BVRE stands for Below the Value of the Real Estate. This model applies when the physical space on a product’s packaging — the “real estate” — is valuable enough on its own to cover everything: manufacturing, logistics, team members, profit, and even charitable donations.
Think of the outside of a water bottle, a cereal box, or a six-pack of beer as advertising space. If the ad revenue generated from printing on that space exceeds the total cost of producing and delivering the product, it becomes a BVRE product.
✅ Examples of BVRE products:
Bottled water, soda, or juice
Rice, beans, and flour
Diapers, soap, paper towels, and household goods
Transportation services like bikes, tuk-tuks, buses, and many self driving vehicles.
In these cases, the physical product itself becomes the advertising platform. A single bottle might feature multiple ad slots, QR codes, affiliate offers, or charitable messages — all monetized. At scale, the revenue generated from that “real estate” can exceed the product’s entire supply chain cost.
BVRE is the simplest and most direct way to make a product free or negatively priced. It doesn’t require software or user actions — just a smart understanding of how valuable physical ad space can be when distributed widely.
AVRE: Above the Value of the Real Estate
AVRE stands for Above the Value of the Real Estate. This model is used when the physical packaging alone isn’t valuable enough to pay for everything — which is often the case with smaller, more expensive, or premium products.
Here, the solution is to add digital or interactive layers on top of the physical product to generate the additional revenue needed to make it free.
✅ Examples of AVRE products:
A can of Pepsi because they won't let any advertise on it
Smartphones and smartwatches
Designer makeup or luxury goods
Uber rides or airline tickets
Credit card payments or insurance premiums
In an AVRE model, the physical ad space is just one part of a larger system. Additional revenue can come from:
Mobile apps that show ads or collect first-party data
QR codes or NFC chips that lead users to offers or games
Surveys, affiliate links, or interactive experiences that unlock extra value
Sponsored actions (like watching short videos) that generate revenue
In other words, AVRE turns engagement — not just packaging — into the engine that funds the product. It’s the model behind many future possibilities: free iPhones, free Uber rides, free internet service, and even free healthcare.
BVRE vs. AVRE: Two Models, One Revolution
While BVRE and AVRE operate differently, they’re two sides of the same coin — and often work best together.
Feature | BVRE | AVRE |
What it means | Below the Value of the Real Estate | Above the Value of the Real Estate |
How it works | Ads printed directly on packaging pay for the entire product | Digital layers (apps, actions, offers) add extra revenue |
Best for | Low-cost, high-volume essentials (water, food, hygiene products) | Premium goods, services, or small-format items |
Key benefit | Simple, scalable, and physical | Highly flexible, data-rich, and software-driven |
Future potential | Everyday essentials | Complex products and services |
The real power comes when these models combine. A BVRE water bottle might also use AVRE layers like a QR code lottery or an app-based affiliate offer. Together, they create multiple revenue streams and maximize the value of every unit distributed.
Why This Matters: From Free Water to Free Everything
The BVRE and AVRE models do more than just make products free — they completely change how value flows through the economy. They:
Turn physical goods into advertising platforms
Enable new revenue streams where none existed before
Make philanthropy automatic by embedding donations into every unit
Unlock better data about consumer preferences and behavior
Fuel new types of manufacturing and distribution systems
In the BVRE/AVRE world, products are no longer limited by their retail price. Instead, they’re powered by attention, engagement, and network effects. That means everything from bottled water to transportation — even housing and healthcare — can eventually become free or negatively priced.
Final Thought: The Blueprint for a Free Economy
BVRE and AVRE aren’t just clever acronyms — they’re the building blocks of a new economic paradigm. One is rooted in the physical world, the other in the digital. Together, they unlock a future where essential goods and services are accessible to everyone, where giving is built into consumption, and where profit and purpose work hand in hand.
This is more than business innovation — it’s the foundation of a global movement. And once you understand these two models, you don’t just see free products differently. You start to see everything different
ly.
✅ Ready to learn how to apply BVRE and AVRE to your own business?Read How to Make a Free Product Company — the step-by-step guide to building a new kind of company that gives away products for free, changes lives, and still makes a profit.
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