Best BUSINESS Tip: How to Stop Giving Away Free Stuff & Increase Perceived Value

Transcript:

There’s an amazing thing that happens when you give your product service away for free.

Hi… I’m Bryan Toder, The No Fear Guy, and when you give away your product or services for free… it does an interesting thing:

It completely de-values your item!

For instance, if you buy a mobile phone for a teenager, he or she may not take care of it as much as if he or she PAID for it! They may lose it, drop it or leave it lying around.

But, if they paid $300 for it, I can guarantee that they would take care of it.

Lottery winners are a wonderful example. More often than not, lottery winners lose the money quickly. Why?

Because it was given to them.

It’s the same thing in your business. If you give away a service, they may not appreciate it as much (or at all!) as if they paid money for it.

Now, I’m not talking about free samples or things like that. It’s just when you give away something to a friend or a previous client (as a favor, maybe), you will find that they don’t show up, or practice the lesson or whatever.

And, for you, you just get frustrated that they aren’t using the thing you just freely gave to them!

Now, there IS a big difference with information. Giving away information for free is okay… to a point.

This video is a great example. It’s free to you with no strings attached.

I give away advice and information for free. And, in return, I get the credibility, the recognition and possibly… a future customer, subscriber and friend.

However, I won’t give away a course on public speaking, for example. I would want my customers to pay for it so that they get the value of the program.

And, as a product producer, I get paid for my efforts.  Win-win!

So, if you are giving away your product or service, stop. Even if you charge a nominal fee, they will appreciate it more than if it’s just given to them.

How do you feel about this? Put your comments in the box below and we’ll talk again on the next Fearless Friday!