5 Reasons Why Free Is Hurting Us All

5 Reasons Why Free Is Hurting Us All

May 09, 2011 -

We’ve swung so far over to the “information wants to be free” thinking that I believe it’s presenting a challenge for businesses and content consumers and the Web in general.

I mean it's still the most powerful word in advertising and marketing, but you have to be very careful with it's usage. I would say, you always want to qualify yourself when you're using it.

Tell them why you're doing it and why you don't do it very often.

My take is that information wants to be worth paying for, and below are five reasons why FREE is hurting you.

1. No accountability

People have become so used to signing up for things with no cost that it’s created an environment of no accountability. Show-up rates for solid FREE events hover around 25 percent to 30 percent.

This can be a Dinner Workshop, or even a FREE Spinal Screening.

This isn’t a reflection on the quality of your content or what you're offering your potential patients; it’s a symptom of a much greater problem. With no commitment there is no accountability–and that includes a commitment to continued learning and even health issues.

2. Eroded value

Let's look at things you might want to give them over the internet. When content is consistently given away, and I'm doing it myself, it loses its value–not only for the producer (me), but also in the eyes of the content consumer. How good can something that’s FREE really be?

This lumps thoroughly researched, well-presented, useful content in with shoddily veiled pitch fests.

Want to read more about fee structuring? Check these out:

* How To Set Fees When You Have No Idea How Much To Charge
* 5 Ways To Increase Your Fees Without Losing Your Patient
* The 3 Most Common Professional Fee Mistakes

3. Lowered expectations

When there is no commitment, there is little to lose. Let me say that again, so you can write it down. When there is no commitment, there is little for them to lose, so why show up?

I think this creates an atmosphere where content producers like me, can simply slap something together with little value because, “What are they going to do, ask for a refund?”

Of course, the flip side is true as well–audiences, your potential consumers, have become pleasantly surprised when they actually get VALUE from time spent reading or viewing something you've put together.

I am writing a book, "How to do 3,500 pushups in a single day, at any age." Now that might interest some people, but then again, most people could care less about doing this. It has no value for them, so they are not going to read what I have to say in a book, even if I ask $7 bucks for it.

But what if I was writing a book, "How to make an extra $500 a day, from anywhere, using your computer... GUARANTEED!" Would that get your attention? Would you pay me $7 Bucks to learn how to do that?

I think you would.

4. Blocked revenue

One of the best ways to build a business that has marketable value is to develop multiple streams of residual income that a potential business BUYER can view as a valuable asset.

When the expectation is that all of your content, speaking and presenting will be made available at NO fee, your business’ greatest potential asset is cut off.

5. Community buster

Here’s the ironic thing: When people are invited into a community where everything is FREE, there’s actually less chance of building a strong community and connection with that person. Community and connection builds when there is VALUE.

I mean when people pay for something you're selling, you've created some kind of value or they would not pay you a red cent.

Ever seen a homeless person begging for money? Most people will give them nothing, while a few will break down and feel like they're helping humanity. I see it this way, as do most people, even though they're not consciously doing it.

What is that homeless person doing for me? Let's put it another way. Is this homeless person creating any VALUE for me? Is this homeless person giving me something of value I can use. I was in Las Vegas and I was crossing a bridge between two casinos and here was a 60 year old homeless man, asking for money, sitting on the bridge.

His sign said, "I don't lie. I need another beer. Please help me." From a marketing standpoint, this was not a good marketing ploy. He had a few dollar bills in his cup, but from a consumers standpoint, he wasn't giving me anything of value.

When you try to build a community, a following if you will, by allowing anyone and everyone to submit FREE content, you’ll soon discover engagement becomes non-existent.

You need to charge them for something.

When community members respect the value of the content enough to pay for it, they are invested in keeping the engagement at the highest level.

Gosh I wonder how much I should charge you for this FREE CONTENT?

Content producers need to find ways to recapture the value in their content, discover the proper way to package it, build multiple streams of residual income with membership communities and we’ll all be better for it.

What are you willing to pay me for a daily blogpost that will teach you how to make more money if you just follow through on what I present?

Let me know.

All the best to you. It's Wednesday, and I'm going for my 2 mile walk. I'll write more later, but for now, I think this is enough FREE content. Most people won't read this much content anyway.

Just an observation.

Have a great day.

Dr. Carney