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Hi Beth, what a timely article as I soul-search some of the very same questions. Thank you for clarifying what I know or intuit but couldn't yet articulate. Warmly, Kelly
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From Free to Fee and Back Again
Are you tired of giving it away? I was! Here are some of my lessons learned about fear, reality and strategy around the other four-letter “F” word, FREE.
Written Aug 18, 2010, read 4498 times since then.
This is the article I never thought I’d write. It’s the tale of one entrepreneur’s journey from Free to Fee and Back Again.
FREE:
Starting out, I was new enough in my industry that my primary goal was to complete my coach training program while accumulating experience and hours. Clients received coaching pro bono or at a relatively low fee, and I offered free teleclasses and webinars. This all served to give me more experience and credibility as a content expert.
Instead of seeing any financial gain during that first year, my reward was valuable feedback, testimonials, experience and increased understanding of what I had to offer as a coach.
And then I hit a wall. I was tired – exhausted, really - of giving it away. Gradually, my fees increased, and I started asking for my desired rate. Talk about empowering! The first time I asked for and received my “market” rate was a turning point in my business. There was no going back. I decided my goal was to make free the exception, rather than the rule.
TO FEE:
A few months ago, I had the opportunity to be part of a new venture that included an unusual business model. The product was an audio download, and instead of seeking sponsors or advertisers, the cost of producing it would be passed along to the end listener. While it’s a product people are used to getting for free, I saw it as akin to using a free online service that has ads, then choosing to pay a small fee for the service to be ad-free. I knew that the pay-per-download could slow down growth of an audience; it felt important to put a stake in the ground and create an opportunity for a mutual exchange of value. The offering was meant to stand-alone (i.e. it wasn’t a disguised sales pitch or teaser), and the investment of $1.99 per download felt reasonable.
Over the course of two months, two things happened. One, download numbers were consistently low. Really low. I considered the facts: 5 hours to produce 30 minutes, getting 8 downloads at $1.99/each resulting in $16. I didn’t have to recall any complicated formulas from high school math to know that these numbers didn’t add up for me.
The second thing that happened was a realization that I loved providing this offering. Not only was it fun, but I was producing a high quality product that would benefit entrepreneurs in general, and introverts in particular. It felt disheartening to produce something useful and only have it experienced by a handful of people.
So, I asked myself some tough questions. What were my options? Was I doing everything I could to promote it? Was it the cost, the offering, or both that was the challenge? If I made the offering free, would I be giving up too soon? Did this amount to pulling that “mutual exchange of value” stake out of the ground? Was I being impatient? How much time and energy was I willing to invest in the current model, feeling like I was swimming upstream?
After a great deal of reflection, I came to the following conclusions:
1) My intention around this offering had shifted from being revenue generating to being awareness generating. One of my objectives in the next six months is to write my first book. Proving the marketability of that book to myself (or to a publisher) requires building a platform. That involves a combination of revealing and creating a community – or, as Seth Godin refers to it, a tribe – within my niche. And a tribe is passion-based, not profit-based.
2) This offering is a valuable channel through which people can start to know, like and trust me. Up to this point, my circle has been primarily composed of people who know me. Identifying my niche (introverts) has both focused and expanded that circle. Now there are hundreds of people connected to me, and we are relative strangers to one another.
3) For most people, time is more valuable than money. I’m forever grateful to Biznik member Tshombe Brown for this bit of wisdom: If you give me a dollar, you’re going to get a dollar back from someone, somewhere. If you give me an hour, you’re never getting that hour back. In the case of this offering, I was asking you for your time AND money, before you could know, like or trust me.
4) The entire experience clarified my philosophy on free vs fee. I realized I was coming from a place of fear: fear that if I didn’t charge, the offering wouldn’t be perceived as valuable, or I’d resent the time I’d invested, or I’d never make any money. On the flip side, there was fear that if I did charge, no one would buy (in other words, I feared poverty whether I charged or not!).
The bottom line? The $1.99 hill was not the one I wanted to die on.
AND BACK AGAIN: Where did that leave me? With a clear decision (convert the audio downloads to a free offering) and a new approach to free. What does that mean for you? If you’re wrestling with deciding if certain services or products you offer should be free, consider these different approaches:
There’s fear-based free…
This results from not completely trusting yourself or the value of your services. You also may be influenced by your peers; if no one else is charging for a particular type of offering, it’s easiest to go with the flow, even if you resent it. This type of free also can come from not being clear about what you want, or being afraid to ask for what you want. Your decision is mostly based on fear of rejection, fear of not being accessible to people who might benefit (you’re assuming they can’t afford it), or fear of bringing money into the equation at all, because that means you'll have to talk about it!
There’s realistic free…
We are often too quick to give up on our value; we think we have to respond to “I can’t afford it” by lowering our fees or giving it away. Those two should not be our default responses! And I personally don’t like it when entrepreneurs who hear “I can’t afford it” from someone say or imply “well, if they really want it, they’ll find the money,” or “that person’s just not ready to play ‘big’.”
Scarcity thinking is real and powerful. All of us can get into scarcity mode, thinking there’s not enough and we have nothing to give, when in reality, the resources ARE there if we look for them. That said, the statement, “the money’s just not there” is an absolute truth for many people. As a woman recently said to me, “If it’s not coming in, it’s not going out.” Fair enough. As with so many situations we encounter as entrepreneurs, this is an opportunity to become curious. Ask a few questions, being aware of the fact that money can be very touchy for some (most?!) people. Find out if the other person is operating from scarcity thinking or stone-cold reality. Decide if YOU are operating from scarcity or reality.
And there’s strategic free…
When you’re being strategic, you acknowledge that your training, expertise and experience are worth something. You believe what you have to offer is of high value (if you didn’t believe that, why would I want to hire you!?). You’re in business because of passion AND profit, to gain personal AND financial freedom.
From this vantage point, you expect an exchange of value for your offerings. You desire appreciation AND compensation. It’s not an either/or situation; it’s both/and. You also recognize that value comes in multiple forms: money, time, mindshare, referrals, testimonials, bartering, critical feedback.
If you decide to offer something for free, you have one of three reasons:
1) You feel secure in the fact that by sharing something valuable for free, your prospective clients will want to learn more about how your core services can support them;
2) You are offering opportunities for prospective clients to begin to know, like and trust you; and/or
3) You are truly unattached to the information and what people will do with it.
In the end, it’s about being strategic and intentional in building both your business and your tribe. You’re not offering it for free because you’re afraid to ask for money, or because you don’t fully trust in the benefit of your offering. You’re offering it because you’ve decided to give it freely and set the intention that others will want to learn more. It’s free by design, not by default.
As you’re considering your offerings, ask yourself: “Is my choice to give this away fear-based or strategic?” Make a choice that reflects your intentions, what you really want and the value you want to give and receive.
***What do you think? What is your philosophy about determining whether something is free or fee? What lessons have you learned?
Learn more about the author, Beth Buelow.
Comment on this article
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Posted by Diane Kern, Seattle, Washington |Aug 18, 2010 Beth a great article posing some thought provoking and soul searching questions. You brought up a good point that there are different kinds of free.
For me its not free or fee but how much fee. In a business where you count on the client to actually follow through to get results what is going to get them to follow the advice they are paying for.
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Posted by Jan Berg, Fircrest, Washington |Aug 18, 2010 Beth, I wish I had your wisdom, clarity and your gift with words. You describe your process in a way that all of us walking a similar path can identify with and learn from. What a delicious treat you've provided!
I'm especially struck by "free by design, not default" - noting that it is about the generous energy - the desire to share behind the offer, not the "what will it get me" energy... Lots to think about!
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Posted by Michael Hartzell, Seattle, Washington |Aug 18, 2010 I used to say: Offer them anchovies for free ... as many as the want! Onions too! Free anchovies and onions.
Since few had a desire for anchovies or onions, it did not impact business either way to charge more or less for them.
What is better than free? Helping someone make $10,000 and dedicating time and resources with a fee of $1,000.
Return on investment.
In all things business, marketing, free or fee.. you are concerned about F.A.T.
yep, you heard it. F.A.T.
It stands for Faith And Trust.
Then when they have A LOT OF FAT and they know their need will be met times 10, their WAD is lightened.
Yes, you heard it right again. Not W.A.D in their pocket, but the W.A.D. in their heart and mind.
Wonder And Doubt.
The value of a product (free or fee) is based on High FAT and Low WAD. In fact much of life is as we commit to new friends.
I know that Noah couldn't get people to believe the flood was coming even though he committed himself each day with action.
I know that if someone said: "Cure for Cancer, $25" and it was the honest truth, few would respond because of FAT and WAD.
So, once you get the cure for cancer, you better be prepared to do as much work with Show And Tell (SAT) and prove it to be so (Repeatedly).
Time is precious and more valuable than money.
A gift is a gift. I give them with no expectations. It is a good way to do business. It is a good way to live each day.
So, More FAT, Less WAD, be prepared to say you have SAT many times a day.
Good topic, tough topic.
Mike
PS The world is now full of free. Those who have plenty offer things of value free as a marketing tool. Those who are desperate offer free to gain attention and authority. It certainly pays to know your market well before you jump in freely.
:)
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Posted by Lynn Baldwin-Rhoades, Seattle, Washington |Aug 18, 2010 Beth, once again, you deliver compelling content that really makes me think! The free vs. fee is one I've pondered again and again; thanks for infusing such wisdom into an issue so many of us struggle with. : )
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Posted by Arden Clise, Seattle, Washington |Aug 18, 2010 Bravo Beth for a very thought provoking, well-written article.
I so struggle with the fee vs free. I'm consistently told not to give it away for free even if we get a small honorarium. I think that makes sense. But, you are right, sometimes we need to give something away for free because it will pay off in the end somehow.
Great job!
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Posted by Zita Gustin, Bellevue, Washington |Aug 18, 2010 Hey Beth,
One of the points that I hope people who read your fabulous article will focus on is the concept of being strategic about what you give away, why you are giving it away and what the outcome is for all parties. That's the premise that puts the power in the phrase, " it's by design not by default."
Too often, I watch people flail about with no real plan for what they are doing. You are encouraging people to really think about the value to both parties when they decide where in the sales funnel they are with an offering.
As usual, your writing is powerful and tight. Firm ideas and easy to grasp concepts.
To answer your question, my philosophy when it comes to giving away things for free is that it is usually a reward to the client for some other step that they have taken. Such as if you buy this by x date, then they get this other thing at no charge. And the "other thing at no charge" is usually something that is already produced, has value or perceived value and requires a minimum of my time. Or it might be an introductory free item that allows them to sample my program to help them (and me) decide if we are a fit and that helps to move them along the sales funnel.
I am not a fan of giving things away for free just to be giving things away for free because everyone else is doing it. I think it can devalue your other offerings and your ability to have a profitable business if you get the reputation of always giving it away for free.
In the end, I think that there has to be a strategic plan in place so that you are always in balance with your over arching goals for your business and its growth.
Thanks for the discussion and a great article which is sure to spark an interesting conversation here.
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Posted by Sea Gabriel, Seattle, Washington |Aug 18, 2010 Thank you so much for this article. It is something I struggle with. Great to hear it addressed in such a clear, insightful manner!
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Posted by Judy Dunn, Seattle, Washington |Aug 18, 2010 Beth,
You and I have been discussing this recently and I am so glad you wrote the article because it will help many people.
What a great conversation you have opened up here. I love articles that provoke a good healthy discussion.
And thanks for your honesty and willingness to let us into your head.
Your points here are critical and what I take away from them is, "Don't just give stuff away. Have a strategy." In this whole content marketing era we find ourselves in, we can easily lose sight of our goal.
I see the "free" as building a base, the "tribe" Godin refers to. For me, it is offering consistent tastes, "cookies" as Copyblogger's Sonia Simone calls them, to move them down the sales funnel Zita describes.
My philosophy on the "free" is talk about what to do, then sell how to do it.
On a side note, I think the mistake some content marketers make is to present a solution to a problem that their readers do not even recognize as a problem. In that case, the solution doesn't have any value. What they really need to do first is produce content that walks people through the problem, and all its implications for their business or life. Then propose the solution.
And on why people don't buy, Naomi Dunford (IttyBiz blog) had a very good post on what customers really mean when they say they can't afford your product or service.
Really appreciate the time you took to think this through and write so eloquently about it, Beth. I'll be interested to hear as more readers weigh in on this issue.
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Posted by Kate Phillips, Seattle, Washington |Aug 18, 2010 Fantastic article, Beth!
I have said that until we can answer the question of "to charge or not" we must answer the question, "What is the Purpose of the product/service/event?" If it's to build our list, build our platform, build trust with new people, then "free" works a whole lot better than "fee."
One thing I'd like to add to your very articulate thoughts: you recommend to "Find out if the other person is operating from scarcity thinking or stone-cold reality. Decide if YOU are operating from scarcity or reality."
In other words, do people have the money but they're just afraid to spend it (scarcity), or do they not have the money (reality)? Or you might say, "It's not scarcity thinking if it's true."
I'd like to propose that the "reality" of no money is a typical EFFECT or RESULT of the CAUSE of scarcity thinking, not an alternative option. The solution to living in the box of "there's no money and I can't afford it" is actually not more money, but a new way of thinking. When we start creating the truth of our lives (which we do anyway) and stop responding to circumstances, that's when magic happens.
Yes, it can be a powerful first step to stop spending money that doesn't exist in one's current reality, but not from a place of "I can't afford it" but from a place of powerful, intentional choice.
Meanwhile, if we are transforming our thoughts, we will see endless new possibilities for how we can have the things we want with the cash we have, and how we can create more financial flow in our lives. (Perhaps beginning just where you suggest... giving away value for free... strategically!)
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Posted by Kate Phillips, Seattle, Washington |
Aug 18, 2010 Judy, that's a fantastic article you just posted the link to (IttyBiz blog), and your point that sometimes we don't create the desire or address a felt problem is indeed an big reason why people don't buy. When they see what we're selling as the answer to their problem, many of the objections disappear.
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Posted by Barbara Breckenfeld, Mountlake Terrace, Washington |Aug 18, 2010 Beth -
Thank you for writing about this topic with such clarity and heart. By sharing your journey, you have teased apart the snarl of seemingly conflicting reasons to offer something free or for fee. The space created sheds light onto my journey with this question.
Thanks also to Zita and Judy for framing the discussion within the larger picture of strategy. The big idea is always a reference point for answering specific questions.
I have found that there is an experimental aspect to marketing and business. You plan, you test, you commit to something, and then you evaluate the outcome -- especially in an uncertain or changing market. It is an essential part of how we learn. Your article gives great insight into your evaluation process, and how we can all benefit from it.
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Posted by Beth Buelow, Tacoma, Washington |Aug 18, 2010 What a great conversation has been started here... thanks, everyone!
One more reason you might do a Strategic Free that just occurred to me: you're offering it in the service of R&D (research & development). If it's the first time you're putting something out there that you feel needs to be tested, a limited trial run can offer valuable feedback. You might consider it a "soft launch." Keep it contained and clear that it's a trial, and that the end product will be valued at $X.
Kelly, thanks for kicking off the comments. I'm so glad this resonated with you.
Diane, what you say is true; in our closest client interactions, people value (and follow-through) on what they pay for. Setting the right value is critical! Thanks for raising that point.
Jan, I love what you say about "generous energy." That's really what it is; it's us as biz owners coming from a place of abundance and trusting that strategic free with a clear intention will invite fee-based business.
Mike, how creatively you frame things! :-) FAT, WAD and SAT fit perfectly into this discussion... and give us new things to think about. I especially appreciate your PS... you highlight one of my main points, which is there's strategic free and desperate free; know yourself and your market, and be conscious about your choice!
Lynn, you and I have discussed this so many times... ;-) and your wisdom has helped give clarity to my thoughts, so thank you!
Arden, yes, there is that balance we have to strike. One thing I didn't mention in the article is that when it comes to our core services/products, the question of free vs. fee is even more important and deserves even closer scrutiny. I'm inclined now NOT to give away my core services. I'm not inflexible, but I do have clear boundaries around that. Secondary or tertiary services/products that lead someone to the core? Those are the subject of the debate!
Zita, hooray! for bringing up the idea that free isn't only a strategy for inviting a client, it's part of the care and feeding of an existing client relationship. Absolutely! And I appreciate your point about it being something that's relatively easy to give; while free takes time, we should always be spending more time on revenue-generating activities.
Sea, you are very welcome! I think those of us in the service-based arena are always coming up against this question.
Judy, yes, you know more about my process around this than most folks, LOL! Thank you for stirring the pot :-). And I like that analogy of cookies and "tastes." Thanks for sharing that very insightful blog post; it adds tremendously to this discussion. One that also influenced my thinking was Seth Godin's "I can't afford it," http://sethgodin.typepad.com/seths_blog/2007/10/i-cant-afford-i.html, which essentially gets at the same issue - if someone says that, the truth is often that I've not done my job to make the value/benefit clear. And to your point, I may be trying to prematurely solve a problem they don't know they have!
Kate, you raise an excellent point! I have a workshop on empowering language that I give to women in lower income brackets, and one exercise is transforming fear-based thoughts into empowered thoughts. The phrase "I can't afford it," or "It's too expensive" is part of the exercise. There are ways to reframe that so that our personal power is restored, and we're reminded we're at choice. So, even if it's reality, we can frame it in a way that invites possibility. Thank you for that very important contribution, Kate!
Barbara, your point about experimentation is really appreciated. It led me to realize there's another reason we might engage in strategic free: to test something out. As you say, it's how we learn. Trial and error. I'm so glad this conversation has supported your journey!
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Posted by Amy Kessel, ACC, Vashon, Washington |Aug 18, 2010 Thanks, Beth, for clearly articulating an internal struggle I've been having a hard time with too! Seems it's a common problem, given the way The Industry is evolving around us.
I resonate deeply with the passion-sharing aspect you reference, as per Seth Godin. Another wise and savvy marketing guy, Dave Navarro (The Launch Coach) has an extensive library of freebies that are worth lots of money - the sense I get from him is that he's so clearly coming from abundance thinking that his offerings are more about goodwill and sharing the wealth than part of his financial strategy. Well, maybe that IS his financial strategy... :)
Thanks again for sparking this fascinating conversation, and thanks to you others for adding your wisdom here as well! I'm bookmarking this one!
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Posted by Randal DeHart, PMP, QPA, Lynnwood, Washington |Aug 18, 2010 -
Posted by Tshombe Brown, Portland, Oregon |Aug 18, 2010 First, I want to say, Beth, that is that I absolutely appreciate your transparency and for taking us through your free-to-fee-to-free journey in this particular instance. As Judy offered, you let us into the inner workings of your mind.
(Speaking of Judy, I might disagree with your comment that "My philosophy on the "free" is talk about what to do, then sell how to do it." For example, I've found in nearly every issue of your newsletter that I've read -- which doesn't cost me anything in terms of price -- you have not only offered the problem and the solution, but also specific action steps to implement the solution.)
I appreciate that your article was mostly about you coming to terms with both the specific, strategic reasons for choosing fee versus free, but also looking at your own issues/challenges around the meaning of money.
I think sometimes money and value are confused with each other. When someone doesn't want to pay our fee (or isn't able to, for whatever reason), it can be difficult NOT to assign to that experience some commentary about your own value/worth.
In my opinion, it's a matter of integrity to have the intention and practice of creating highly-valuable content for our leads, prospects, and customers. This in and of itself really has nothing to do with whether (or how much) we charge for it.
Your advice to always be clear on the strategic purpose when making the decision to charge (and how much to charge) is sage counsel. As you so eloquently articulated, it's a much easier process once our own 'money junk' is dealt.
On another note, Kathie Nelson of ConnectWorks, asked this question on her Facebook Fan Page:
"Money strategy...What brand message are you sending when you say you can't afford it, always looking for "free", or are always seeking the lowest cost? What if you said (and thought) I choose not to invest in this right now, I'd like to test this product/service, I am looking for what fits into my current budget?"
I offered in response:
"I really like the reframing internal & external conversation you offer. It feels to me and projects to others that I am making a business decision that is in alignment with something specific rather than knee jerk and reactionary."
It's great to see your article and the comments here echo and expand upon this important conversation.
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Posted by Tshombe Brown, Portland, Oregon |
Aug 18, 2010 Oh, by the way, Beth, thank you for the shout-out! It's so true that we can always go out and create another dollar, but time -- once spent (at least in this dimension we all live in!) -- cannot be earned back.
I love how you took the concept to illustrate how important it is to honor the members (and potential members) of our tribe by valuing both their time and their money.
Thank you.
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Posted by Nikki Coyote, Langley, Washington |Aug 18, 2010 Brilliant! Thank you Beth! I want to pre-order the book you are writing! I know it will be a winner— filled with wisdom, humor, and brilliant tools for a wild and adventurous journey! I'm a fan. I love your style!
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Posted by Peggie Arvidson, Alexandria, Virginia |Aug 18, 2010 I love this:
“If it’s not coming in, it’s not going out.”
When it's a fact, it's a fact. I've liked feeling bullied or less than for knowing and sticking to MY budget. I also am keenly aware that while there is MUCH knowledge out there, there are limited hours in the day for me to listen/read/absorb and act on that information. You're right, once I've given an hour another is not going to replace it.
I appreciate your process here....
and an aside -- many people, although it's hard to believe, do not like audio. I'm one of them. Noise of any sort tosses my head into a tizzy and can actually make it harder to get the message. There are a number of reasons for this -- but the truth is, I'd likely pay 1.99 for a transcript that I really wanted but not for an audio.
Peggie
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Posted by Patty K, New Westminster, British Columbia Canada |Aug 18, 2010 Hey Beth...
Great article. I really appreciate you sharing your personal experience with this. I like your takeaway message about being strategic about free.
Making sure I'm not afraid to ask for money is going to be a key question for me to ask myself in the near future. I'm still in the "doing stuff for free to get experience and testimonials" stage. At some point I need to determine that I have enough experience and what I have to offer is valuable enough to charge for.
Thank you for this!
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Posted by Victoria Dzenis, Seattle, Washington |Aug 18, 2010 Wow Beth!
Thank you so much for sharing your free-fee-free journey with us. I can relate so much!
I'm really starting to get that I'm not "giving it away" if I am sharing a free product or service as a part of a larger plan to share who I am and what I do with potential clients. A very important distinction!
~Victoria
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Posted by Karen Whittier, Seattle, Washington |Aug 18, 2010 Fantastic article and outstanding comments from other readers. This article is timely for me as well as I decide if/when, how/where and most importantly why to offer product free.
Passion fueled and continues to fuel the reason I started my business, but business exists to make money. I liked the stragetic free; it's not an either/or situation, but a both/and: passion and profit, appreciations and compensation.
Thanks Beth for outlining a thought-provoking and educational process in how we approach this aspect of our business.
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Posted by Taylor Ellwood, Portland, Oregon |Aug 19, 2010 Hello Beth,
Very insightful article. Thank you for sharing. I think my own approach on free is similar: Give aways are good if they are strategic, and can bring you a measurable return.
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Posted by Deborah Drake, Bellevue, Washington |Aug 19, 2010 Beth,
I am now a member of the chorus beside all the fine comments--in complete agreement with how people have experienced you through your article.
Generous, Insightful, Authentic, Competent and Committed to Success the best way possible.
And knowing you from that point in time that you opted to train to become a coach, and to watch you advance through and add coaching to your WIDE and DIVERSE range of existing talents...you know how I feel about you as a writer, a coach, a marketer, a pay it forward soul...
Months back I wrote down a prospective article title that is not yet more than a title. "Please Stop Working for Free." The ideas that have been rattling about in my head since, are showing up in your crystal clear and elegantly told story.
The quote that strikes me as well (as it did Kate Phillips) like a velvet hammer is: "Find out if the other person is operating from scarcity thinking or stone-cold reality. Decide if YOU are operating from scarcity or reality."
To be clear and aware of what is the reference point for two parties having a conversation around the prospect of working together is powerful. If I am coming from scarcity and the other is coming from reality, how can we develop rapport, determine what is a good match (or not) and make a meaningful connection for starters.
If I am coming from reality and can recognize the other is also speaking candidly with me from reality, then a meaningful connection of some kind seems a natural by-product.
Your journey from free to fee and back again is something we can all relate to. Somethings I do with others will always be free, because I started the activity to nourish myself as well as others.
And being strategic is always a good thing. I for one don't respond to free offers that seem beneath the surface to have strings attached. How do I decide if there might be strings? I actually trust my intuition.
Sometimes it is strategic to gift time and services. Sometimes it is more strategic to say boldly what your market rates are. Sometimes it is strategic to adjust rates for a willing prospect with realistic obstacles to overcome that you sense will make the most of working with you.
Even when I am gifting time or services, I know I am not working for free. I am at choice and I am aware of it and that is EMPOWERING to myself and the ones I am working with.
GREAT article...And as for that book you are working on...I too will happily pre-order a copy.
Deborah
Authentic Writing Provokes
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Posted by Tannya Bernadette, Seattle, Washington |Aug 19, 2010 Very great article! I like how you brought in your experience to relate to and get a better understanding of the definition.
I will keep this mind as I prepare my first biznik event!
Thank you!!!
Tannya Bernadette
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Posted by Freddie Cecchini, St Thomas, US Virgin Islands United States Minor Outlying Islands |Aug 19, 2010 Hey Beth... I liked the way you explained that if we have a clear intention why FREE vs FEE it makes it OK in out minds and the fear of loss changes to gain.
We gain appreciation by adding valuable content and add more people to our tribe. Thanks Beth I'm glad I dropped by.
Coach Freddie
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Posted by Guy Siverson, Troy, Michigan |Aug 19, 2010 When I was a kid I used to rake yards.
My charge?
Whatever you can afford to pay.
My older brother thought this to be crazy and challenged me to a raking dual. He would charge a set price and I would continue my way.
At the end of the day the results were in.
He earned about $5 and I came home with around $20 plus a sense of doing good for the elderly widow that could only afford my services for 10 cents.
There is a great deal to be said for free as long as it doesn't coincide with the word cheap. Even those that have used computers can see benefits from a refurbished device compared to one that they buy new, or at least I can.
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Posted by Dr-Robert McGinnis, Tarboro, North Carolina |Aug 19, 2010 Free is often equated with the value of the product. We have to be careful the definition of any gift has some beneficial attachment to both the giver as well as the receiver. I enjoyed reading many of the above comments and all were very good and produced a quality of understanding. I think one of the things I think about with free offerings is what it will cost me. Yes, what it will cost. No one who opens a restaurant or a repair shop can survive on "free" which puts me in mind of why we are in business to begin with. You will remember the old saying, "The best things in life are free." I don't believe they were referring to food, cars, horses or advice. I could be wrong. I have been wrong most of my life. It's the best part of being human. Thanks for the great article, I loved it as well as the comments. It really tugged my mind into overtime. Dr Robert E McGinnis (author for over forty years)
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Posted by Chris Connolly, Mountlake Terrace, Washington |Aug 19, 2010 Nice article. These articles often make me think about why I do things the way I do and how come they work (or not). I offer lots of free services. All of them are knowledge. I enjoy helping people solve problems. As a result, I often get the work. If i suspect that a client or potetial client will be price shopping me, I simply state: "As a courtesy to you I will provide an evaluation and reccommendations. All I ask in return is that should you decide to go to open bid, you take into consideration the time and effort we have already invested for the benefit for your company." Especially in today's market, prices are fairly close in open bid situations and this seems to secure the work.
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Posted by Kimberly Gauthier, Marysville, Washington |Aug 19, 2010 Fantastic article. I was offering free photography and was astounded by how few takers I got and that the people who did take me up on the offer were very demanding - since this was their chance to get free photography, they wanted it all.
I told myself that I was trying to promote myself and my photography as well as gain knowledge on my business. But I think that there was some fear based free in there too. The fear that I wouldn't find paying clients so I had to offer free until people heard about me. So I only do free for friends and that's only when I'm getting something in return - i.e. practice, promotional material, blog post material.
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Posted by Kim Yale, CPC, Seattle, Washington |Aug 19, 2010 Greetings, Beth! Thank you for such an insightful and well-articulated article on the fee/free topic. And such terrific responses!
I so agree with your follow-up note about free being appropriate when you are getting something in return, such as research that leads to helpful insights about your target. In fact, I'm in the midst of conducting "focus groups" that are doing just that - I'm offering them for free (including fun food and beverages) in exchange for the time and input/feedback from participants. The participants are, of course, potential clients so I am also creating familiarity with my services and philosophy as a life coach - we all win! ;-)
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Posted by Dr-Robert McGinnis, Tarboro, North Carolina |
Aug 19, 2010 I am a lot older than anyone here, and in my day, we didn't call exchanging anything for something else, "free", we called it barter. According to what I read here, working for my meals and a place to sleep at the nearby farm as a homeless teenager, meant my food and lodging were free. I think I am beginning to understand the younger generation a lot more by reading these articles. I love them. thanks. I am not too old to learn. Dr M
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Posted by Josh Kilen, Tacoma, Washington |Aug 19, 2010 Sean D'Souza has a thing he calls the Bikini Principle. I think it's a brilliant way to see this dilemma.
He says to freely show 90% of the good stuff, in posts or free products, but keep back the crucial 10% for your paid materials.
What 10% you might ask? How will you know what to give and what to keep?
Easy, you give away the ideas but you sell the SYSTEM. Clients may like your ideas but your system (your way of doing things) is what people really want.
They read your ideas, those make sense, so they want more. They can have all the ideas, but how you string together the ideas into a workable system is where your genius comes into play. You should be paid for that.
So, ideas are free. The System is not. Nice little idea to guide the free vs paid debate.
(Now, how do you structure a SYSTEM that profitably makes use of this idea? :-) That's what Sean sells, among other things)
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Posted by Judy Dunn, Seattle, Washington |
Aug 19, 2010 Dr. M,
I think you have hit on something here. Free is not free if you get something in exchange for it. I think the bartering concept is alive and well, especially in this economy.
So it may not be money you get in exchange. Might be an email list to market to, might be "credibility points" to save up and cash in someday, might be social proof through referrals and word-of-mouth.
Oh, and by the way. You are not the only "older" person here. : )
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Posted by Jane Green, Portland, Oregon |Aug 19, 2010 Well put. One of the best explanations of free vs fear with fear I've ever seen. Thanks, Beth, for your clear and concise article. Love your energy!
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Posted by Jane Green, Portland, Oregon |
Aug 19, 2010 Well put. One of the best explanations of free vs free with fear I've ever seen. Thanks, Beth, for your clear and concise article. Love your energy!
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Posted by Susan Lannis, Clackamas, Oregon |Aug 19, 2010 To keep it simple, fast and easy - "ditto" and "thanks"
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Posted by Connie Umbenhower, San Jose, California |Aug 19, 2010 I really enjoyed your insights. Very well done Beth!
FREE can be very rewarding when you are building that community of trust and allowing people to get to know you and your services. And it is so important to be aware of what we are doing - is it Fear based Free vs Realistic Free or Strategic Free. What a great article!
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Posted by Mark Craemer, Seattle, Washington |Aug 19, 2010 Beth,
I echo the comments here and applaud your timely article on this topic. As a regular blogger, I use my blog to build trust among prospects. That said, the fact that it is free, informative (I hope) and builds trust, is not necessarily enough. Anything that is given away for free also needs to have some type of call to action so that you can move the prospect behind your "pay wall." I struggle with how to balance the desire to provide interesting, informative information, yet get my readers to pick up the phone or email me for consulting services. Any thoughts on how free blogs can help convert to fee based services?
Best, Mark
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Posted by Sue Mariconda, Seattle, Washington |Aug 19, 2010 This article was perfectly timed for me - I've been doing a lot of thinking on this lately. Thanks for giving me some other ideas to think about, which is very helpful!
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Posted by Beth Schecher, Eastport, New York |Aug 19, 2010 Thanks so much for the article, Beth. You have clearly stirred up discussion on an important topic to most of us.
I love looking at the strategy behind a free offering. Thanks for the insight.Beth
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Posted by Susan Straub-Martin, Bellevue, Washington |Aug 19, 2010 Beth: Once again you have the wisdom and creativity to share. I always enjoy your articles because they make me think, and thinking is a good thing.
I think we get so wrapped up sometimes in what we are ding we forget to let people really know who we are. If they don't know us, none of it matters.
I look forward to seeing and reading more articles and i know the book will be fantastic. Cheers!
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Posted by Connie Carlson, Seattle, Washington |Aug 19, 2010 Excellent article and thought-provoking discussion, and especially valuable since I am currently revisiting my business plan. Thanks!
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Posted by Lynn Chapman, ACC, Seattle, Washington |Aug 20, 2010 Beth,
Ironically a friend who is not a coach sent this to me....I'm in the Invite Change class that you spoke at....what a great article....! I'd love to talk to you more extensively about how you built your coaching business...Lynn
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Posted by Beth Buelow, Tacoma, Washington |
Aug 20, 2010 Hi everyone! Thanks so much for adding so much depth and experience to this discussion. I'm really thrilled about how much we're learning from each other about this critical topic. My apologies for not addressing each of your comments personally; please know I'm reading each of them and really appreciate how thoughtful, supportive and open everyone is being.
For me, it's an ongoing discussion and process. My philosophies and priorities will evolve as my business does, as I'm guessing is true for you. However, my core values of respect, contribution and working from love, not fear, always will guide that evolution. It'll be by turns messy and awesome... isn't that part of the joy ride!? :-)
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Posted by Nina Durfee, ACC, Duvall, Washington |Aug 22, 2010 Beth, your perceptive abilities -- and your eloquent expression of the process -- are delightful and admirable! You're definitely not the only entrepreneur who has struggled with this issue. I appreciate your analytical clarity. Your conclusion affirms my tag line and guiding principle -- live not by default, but by design! This is landmark material -- something to refer to when the fee conundrum rears its pesky head. Bravo!
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Posted by Deborah Drake, Bellevue, Washington |
Aug 23, 2010 Dear Beth,
You do realize, how you show up all the time is so in alignment with your core values? I hope you do!
And yes, it is challenging when "jumping into what can seem like an abyss" and launching oneself in self-employment ventures. And it's so worth it, isn't it?
It's a great exciting adventure if we choose to see it that way. (I feel the same way about parenting!)
All the preparation one can do, all the planning and executing of the plan that one then follows can feel like a bit of a safety net, but again, no guarantees.
You have been told by me more than once what an inspiration you are. I'll be telling you many times more.
And you are such a fine example of what Authentic Writing Provokes...and that is engaging responses...because we resonate with it!
Deborah
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Posted by Andy Havens, Galena, Maryland |Aug 26, 2010 Hi Beth,
What a chord your article struck! Not long ago I posed a question about offer a free consultation and whether this was a mistake as suggested by another article.
The overwhelming consensus was that my offer comes across as an invitation to a sales pitch. Anyone who knows me would spot this as far from the truth but most people coming to my website, well, they don't know me.
Taking this into consideration, I dropped my offer.
And now I'm right back at it. No, not a consultation, but I nearly always offer something as I do believe these things help build stronger relationships.
Thanks for your insight.
Andy
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Posted by Steve Fiksdal, Auburn, Washington |Sep 01, 2010 Great article and discussion. I've read everyone's comments. As we strive towards know, like, trust it's important to remember it's about providing value. And that value can certainly be free.
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Posted by Jennifer Manlowe, Bainbridge Island, Washington |Sep 12, 2010 Wow, Beth, you are as talented as you are an activist for our growth as introverts. Thank you so much for your sincere offerings. You're passing on value that will come (is coming) back to you at least 100-fold!
Blessings,
Jennifer
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Posted by Patricia Eslava Vessey, PCC..., Seattle, Washington |Nov 16, 2010 Wonderful article Beth, very grounded, and thought provoking.
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Posted by Beth Buelow, Tacoma, Washington |
Nov 18, 2010 Thanks, everyone, for the fabulous comments here. I'm re-reading them, because I'm at another intersection of packaging services and products and deciding the balance of free and fee. It still seems to all come back to clear strategy and intention, and where the choice (and it is a choice!) comes from: fear or love.
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Posted by Jenni Parker Brown, Benac, ariege France |Mar 24, 2011 Excellent article Beth. It made me feel less alone! After two years of offering valuable resources for free, and often doubting the wisdom of that when I consider the sweat equity I've invested I realize again that the strategy is deliberate and patience is vital. In fact I think it paves the way for long term relationships with people who observe and enjoy your services for a long time before you present them with a solution they need.
I know Tshombe..he's gorgeous! Watching your articles..:) Warmly, Jenni
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