As an Atlanta marketing consultant and business strategist, I have different trainers and speakers that I follow. I recently was reading a blog posting from one that was a response to his "greed" for charging people that want to have lunch with him. I was impressed by the huge number of responses his posting of the original letter and his response to the letter received. There was representation on both sides of the equation. Some people saw his refusal for a free lunch as arrogant and short-sighted, where others applauded him for setting boundaries and sticking to them, encouraging him to raise his rates. Having used the "free trial" approach in numerous businesses I have been in, there are definitely rules that come up in the "free" scenario. Here are a couple points of note, for your consideration: Free = no value. One of the arguments the consultant gave was that people who get something for free often do nothing with the advice and don't make any changes. This is because they have no skin in the game and the change required is too painful, especially with no skin in the game. I would like to argue against this, but the longer I am in business, the more I have to say this is the case. This is the same reason companies still make you pay something, even if they offer a 100% money back guarantee, versus just giving it to you for free up front. If it didn't cost anything, it's too easy to ignore it and do nothing with it. Can I afford "free"? Businesses use "free" to start a relationship. While this isn't the time or place to get into the psychology of why this is so effective, there are a number of times it is not. Early in a business, to gain credibility, it may be necessary to offer to do things for free. By doing so, you are assuming the risk. The longer you are in business though, you will reach a stage where you can stand on the merits of your accomplishments. When you have a mountain of evidence that what you do produces the solutions you are offering, then you shouldn't have to give things away because the risk factors are mitigated. When you give things away, you erode your margins and jeopardize all of the good you are able to do by having a thriving, successful business. Will there be times that it would be advisable to do so that you may miss out on if you don't give free a chance? Sure, but those will be smaller in number to the good you are able to create as part of the economy. Not giving things away in general gives you more control to give where you want to. I still like to do some free presentations in Atlanta, GA to develop new programs and get feedback on new products. This creates a win-win for everyone involved. I get to practice a presentation and speaking material while the audience can benefit from the insights offered. The time I'm investing is part of my marketing budget and calendar. I can do a lot of things to market my business, and a "free" presentation is just one way, which may or may not be appropriate for another type of business. What I have to measure is the amount of business the presentation brought in versus what I may have made if I invested the time differently. This brings us to the idea of investing time. Make sure "free" is a good investment. In the case in the article, having lunch for free to pick someone's brain, may not be a good investment of that person's time. When businesses offer something for "free", there was some kind of cost tied to it. Aside from cash, don't forget about the money value of time. We only have so much time to "spend". Time can be invested to form relationships. If you need more business, consider the strength of the relationships you have. In this consultant's case, he's got probably more business than he can or wants to personally handle, so he has no reason to invest time in additional, weaker relationships to get more business that he can't handle. Make sure you look at things from the time investment side of things for both yourself and the other person when making requests for time, ie. a lunch or coffee meeting. Be prepared to sell someone on why they should meet with you before you ask. There was an expression in one of the comments that I though made a lot of sense for people in general. It came from a relationship expert and read something like: "It's acceptable to feel like you can ask for what you want from others, but before you ask, you have to be willing to accept what they tell you, especially if it isn't what you want to hear." I hope this article gave you some good "free" advice. The reason I wrote it was to let you know I can help you work through the use of "free" in your business for maximum impact. Just like the consultant I was referencing, I offer a lot of "free" information to hopefully give people a chance to earn enough to do business with me and/or establish enough credibility to reduce any risk a potential client might see on their side that would keep them from moving forward. If you'd like a free review of where your business is at and how we can do some work together, please call the office to set up an appointment. You'll need to answer some questions before we get started, but the time will be well spent. Call 770-912-8774 today. If you'd like some free consulting or training for your business, ask about our referral program to see how you can earn it. We invest into those that help us grow. If this has made you think or made you angry, I'd love to hear about it! Comment or call today.
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