Mar 11 2008
The Thing About Free
Seth Godin has a great post on the concept of “free” today.
“The interaction you seek as a marketer often disappears when something is free. The fascinating thing is that it often doesn’t matter if you’re paying or being paid… it’s the transaction either way that changes the posture of the person you’re working with.”
Seattle’s own Cathy Goodwin, copywriter extraordinaire, first sold me on the idea that money makes a relationship more productive on both sides and inspired a change in the way I do business. When I stopped having all those free coffee dates my income went up and my interactions were more meaningful.
The same is true when asking for something from your customers. About a year ago I did a targeted marketing survey and offered a donation to a local charity to the participants who chose to give me their feedback. I got valuable information from a hard-to-reach segment of my business and they got a donation to something they believe in. If I had just called out of the blue asking for free help I do not think I would have had the same response.
Seth’s point is right on: a “free” product or service does not have the same perceived value as even a nominally priced item.
So when you offer your next “free”special report, seminar, or service, keep this in mind. Payment can come in many forms - a refundable deposit, information, publicity, a case study - but you should always have some form of payment to make it a true transaction.
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Betsy,
This has been my experience as well. I have found that when I have offered things for “free” (ie: a seat in a seminar) the commitment on the part of the receiver is often not there (ie: they cancel or don’t show at the last minute). When a price has been paid, there is the perceived value you refer to and usually a committment and level of interest that coincides.
Thanks for your great blog. I find value in every post … I guess there are some exceptions to the perceived value of something “free”