The Twelve Days of Christmas: My Christmas Gifts to You

It’s getting close to Christmas, so I thought I would spread some Christmas cheer with my own “Twelve Days of Christmas” gift-giving spree.

Over the next 12 days, I’ll give you a gift every day – something you can read, watch or listen to – to help you grow your business through on-line marketing and product creation.

I’ll be announcing each gift on my group “Gihan’s Cool Internet Stuff for Thought Leaders” on ThoughtLeadersCentral.com. If you’re not already a member, just head over there and join the group. It’s free to join, and takes just a couple of minutes.

If you’re not a member of ThoughtLeadersCentral.com, you’ll be invited to join that as well. That’s also free to join, and only takes a couple more minutes. After you join, just head over to the group.

Enjoy!

The Fruits and Failures of Free: An Interesting Post from Ian Berry

Ian Berry raised a very important point about “Free vs Free” in a frank post on a LinkedIn group. Here’s an edited version:

“I give away lots of digital content via blogs, articles, videos, slideshares, you name it. I give away lots of hard earned wisdom in discussion forums like this. I give lots of in person time to people for free.

For what? Good question!

My experience is that there is now such an expectation of free that the lines are blurred between what is free and what is fee.

I now have great relationships with people that would not have began if it were not for social media/networking. The amount of business that has resulted is miniscule compared to the time, energy, and money invested.”

Ian’s post sparked some spirited and insightful discussion, and you can follow that discussion on LinkedIn.

I’ll share my thoughts here …

I do some things free as part of my service to my community, and I do some other things free with clear marketing goals in mind. Let me put the former to one side and address the latter here, because I think that’s what Ian is referring to.

First, I certainly don’t believe in something else Ian quoted to further the discussion (and I know he was only quoting it, not necessarily endorsing it), that “Free means one of two things, namely you are either not good enough to be paid, or you don’t believe in your own work.” That’s nonsense. In the modern world, there are plenty of examples of solid business models and strong companies based on giving free services (Google and Facebook are two obvious examples).

Ian’s comment that “there is now such an expectation of free” cuts to the heart of the matter. There is sometimes an expectation of free, but that expectation is usually created by the service provider, not by the customer. Not every customer expects everything to be free (Try walking into a shoe shop with that expectation). So, with respect, service providers who attract customers who expect free stuff generally have themselves to blame for creating that expectation – or, at the very least, for not changing it right up front.

I strongly believe in leading with value, which means – yes – you give away some stuff free (and I give away a lot, as you can easily verify on my Web site www.GihanPerera.com and in various on-line communities). Most of my business comes from demonstrating value and building authority, and that’s based on giving away a lot free.

But I also have clear lines where things change from free to fee. And I think that’s the secret. Make sure YOU know what’s free and what’s not, and that makes it easy to communicate that to your clients.

Here are some of my rules and guidelines:

  1. I might offer general advice (such as this comment) free, but if you want advice about your specific situation, you pay.
  2. If I volunteer information, it’s usually free; but if you ask me for advice, I will generally ask you to pay for it.
  3. If my clients (and especially the paying subscribers of my membership site) are paying for it, you should, too – either as a one-off fee or by becoming a paying subscriber.
  4. If I do work for non-profit organisations, that’s not necessarily free (they are the charity, not I!). But if the organisation fits certain criteria, then I do offer it free (see www.ourtomorrow.org if you’d like to know my criteria).

I’m not suggesting these rules will apply to everybody, but I do suggest you create your own rules, so you can address the client’s expectation.

Are You Showing Off Enough?

I recently attended a concert performance by the Auckland Symphony Orchestra. In fact, it was a “free family concert” – one of a few they do each year for the people of Auckland.

Although they didn’t charge us any money for this performance, they still performed at their best (as you would expect). It was the full orchestra, not a cut-down version; it was led by their two main conductors, not some inferior ring-ins; and of course they put as much effort into it as they would for a paid event.

As a result, I’m sure they would have converted some of the audience to classical music, and perhaps to paying for future concerts.

That’s the sort of thing we should all be doing!

Are you willing to give away some of your best material in order to attract future clients? If not, it’s time to change your thinking!

I’m surprised by some people’s desire to hoard their best stuff. Maybe there was a time when you could have got away with that, but no longer. Heck, somebody else is already sharing the same material on YouTube, Flickr, blogs, podcasts, on-line forums and webinars. So you’re only hurting yourself if you’re not out there as well.

And I’m not just talking about giving away some half-baked thoughts that aren’t good enough to use in your presentations. Give them your best ideas!

In a recent blog post about how to get more speaking engagements, Chris Brogan put it this way:

“If you’re not blogging about your message, no one knows what you’re going to say on their stage.”

Maybe blogging isn’t the best tool for you (but I really think it’s one of the most important). For example:

  • If you like doing videos, publish your ideas to YouTube.
  • If you find it easy to record audio, publish a podcast.
  • If you can whip up a PowerPoint slide show quickly, publish to SlideShare.net.

There are so many ways you can share material on-line. But you don’t have to do everything; just be sure you’re doing something, and doing it effectively.
If you want to know how to do this efficiently, watch the recording of my webinar about how to simplify and automate your Internet marketing.

We have a big advantage over a symphony orchestra.

The Auckland Symphony Orchestra has to be careful not to offer too many free concerts, because they compete with their paid performances. So they have to strike a fine balance.

But it’s the other way around for us! If a potential client sees you sharing a great idea on YouTube, that increases the chances of them booking you (unless you’re bad!). In fact, the more they see you, listen to you and read your stuff, the more you seem like the authority on that subject.
So get out there and start showing off!

How much should you charge – and who should pay?

I’m currently talking to three joint venture partners (separately) about running my Build Your Web Site In Two Days workshops with them. These discussions have raised interesting issues about pricing, and offer some valuable insights for any business, especially in an on-line world where so much is available free, or almost free.

One of these JV partners wants participants to pay for the workshop (which is the same model I’ve been using until now); another suggested a model where we ask an industry association to subsidise it for their members; and the third wants to bring in an external sponsor to pay for the whole thing.

Which is the best option? Well, of course, all of them are valid, and I’m looking forward to being involved in all three models.

I wonder whether you are considering different pricing models for your products and services? It might just set you apart from the rest.

For instance, one of the reasons for Google’s success is that it’s free! Because it gets paid by advertisers, not searchers, it can offer all sorts of services to us at no charge at all – and that makes it almost impossible for anybody else to compete with it on price.

Here’s another example: An article I read recently, titled “Five lessons Apple can learn from Amazon”, which makes the point that Amazon.com won’t mind if Apple’s iPad kills off Amazon’s Kindle for reading e-books, because Amazon is in the business of selling books, not selling e-book readers. Even if you don’t agree with the rest of the article (for example, “Apple is pretty much like North Korea. It seems to be run by a relatively unhinged leader, everything is shrouded in darkness, and very little useful information leaks past its borders”!), don’t overlook this point.

If you’d like even more thought-provoking discussion about pricing, listen to the podcast episode “How Much Should You Charge? Why ‘Smart Pricing’ Pays Off”, from the Wharton Business School (Listen to the episode or read the transcript).

The point is: Pricing is changing! You can’t just compete directly any more; you might have to change your entire approach.

How to work with the "free" culture – some companies get it

U.K. singer Lily Allen recently sparked a firestorm with her comments supporting the music industry’s proposed draconian action against alleged copyright violators. So much so that she dramatically announced she was “quitting music”.

Of course, Allen and the music industry have a right to defend their copyright. But this is just an example of an industry unwilling to move with the times.

In contrast, YouTube has found a way to work with media companies whose work is being uploaded illegally to YouTube. Rather than come down with a heavy stick, the companies and YouTube now share advertising revenue from those videos, leading to a new and unexpected income source for these companies.

In a similar vein, cosmetics brand Estee Lauder has launched a new service to offer free makeovers and photo shoots for women to use for their online profiles. It’s a perfect fit for their brand, and a smart way to connect their off-line marketing with their target market’s on-line needs.

What are you doing to take advantage of – not complain about – this Internet culture of everything being free?

The perfect storm: When Chris Anderson, Malcolm Gladwell and Seth Godin clash

Will “free” destroy your business or save it? That’s a question that has three of the most influential business thinkers in the western world – Chris Anderson, Malcolm Gladwell and Seth Godin – clashing. It’s all because of Anderson’s latest book Free, which Gladwell criticised in his book review, prompting Godin to come out on Anderson’s side.

Not sure what all the fuss is about? Watch our slide presentation here:

From Matt Hern: How Thought Leaders Can Have More Money and Time To Pursue Their Passions

One of my clients, Matt Hern, has created an excellent special report about managing your money effectively. It’s specifically for infopreneurs and thought leaders, who sometimes have trouble working with financial advisers who don’t understand this industry.

Matt’s e-book is complimentary, beautifully laid out and an excellent example of how to use a free report to demonstrate your expertise.

Download your complimentary copy here [link amended following Matt's comment].

They just don’t get it!

Here are three news stories about organisations that just don’t “get” the modern world of Fast, Flat and Free:

Fortunately, it’s not all bad news – here’s one organisation that does get it:

Will "free" destroy your business or save it?

Chris and I recently published a podcast about the effect of “freeconomics” on business. If you’re a visual person, you might like to watch this as a slide presentation …

Web 2.0 takes publishing out of the hands of a few and puts it in the hands of the many. Google is a free search engine; Wikipedia is a free encyclopedia; YouTube lets you be a movie producer; Blogger gives you your own newspaper column; iTunes gives you your own radio station; and Flickr lets you be a photographer. And all of these services are free. Is everything that’s any good now free, and is everything that’s free any good? More importantly, from a business perspective, will free destroy your business – or can you use it to boost your business?

Where do you draw the line between ‘free stuff’ and paid services?

Somebody recently asked this question on LinkedIn (edited version here)

“I’m putting together some brand new packages and would love some advice from the group. I currently give away a 10-page e-zine (10 editions per year), a weekly motivational email and offer a free trial coaching session. I have developed a new online survey, which I would like to offer for free, with the analysed results and other goodies being available in a package for purchase.

Where do others draw the line between offering good-quality free services to entice new clients – and giving away too much?”

First, this is an excellent question because I think it’s very tempting for service providers to give stuff away because there’s no “cost” of delivery. Sometimes the clients don’t value it because it’s just “advice”, but even more often the provider themselves doesn’t value their own expertise. But your expertise does have value, and should be priced accordingly by you and valued accordingly by clients.

That’s not to say you shouldn’t give things away; but do it (a) on your own terms, and (b) as part of a strategy.

I suggest you work backwards. Rather than asking how much to give away free, start by looking at your paid services and figure out a marketing and sales strategy for them.

For example, you might decide that a free trial coaching session is the best way to get coaching clients. Fair enough, but it’s not the only option. A really good testimonial from a happy client might also work. Or a direct referral from a happy client. Or an endorsement from your mentor to their network. Or an introductory seminar or webinar. Or a great book you’ve written. Or the diagnostic tool you’re planning. Or a special report that’s been passed around virally. Or a YouTube video.

Some of these might be free; others might be for a fee. But don’t judge their effectiveness on the price alone.

For example, I run regular webinars. Members of my (paid) membership site get the webinars free; and I’ll sometimes open them up to non-members as well, but usually for a fee. Some of those non-members are attending the webinar to get a taste of my expertise before becoming a member or buying consulting services. They are happy to pay the one-off webinar fee before making a bigger commitment.


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