Wednesday, February 17, 2010

Where do you draw the line between free 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?"
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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