On the web, the battle rages on every time a example of paid content or expertise comes on the scene.
I’m not talking about sponsored posts or tweets – that’s a different argument that we’ll have to have another day.
I’m talking about projects like Third Tribe, or other membership-based learning communities. Or ebooks that aren’t free. Events, either live or on the web. Or time to consult, advise, speak, whatever.
There is a ton of information out on the web that’s free, and it’s given us a bit of an expectation that things we find on the internet shouldn’t cost us anything. But I just don’t understand the griping and whining that happens when someone decides to charge for their stuff.
There are three big reasons I pay for things, have charged money for my expertise and services, and think you have a right to try and do the same:
1. Experience Requires Investment
What you know didn’t get there by accident. Whether it was formal education or learning in the trenches, you paid for your education. You paid in time, in effort, perhaps in money. The stuff that’s in your head and the practical, tangible experience you’ve accumulated over the years. It all cost you something.
Employers pay for that expertise in the form of a salary. Audiences pay for books written by people who have detailed their experiences or knowledge. University tuition costs money. And you can argue all day long about how to determine the value of learning and how to filter out the good from the bad. But the fact remains that experience and knowledge can be worth money, and those that have it have reasons to put a pricetag on it.
2. Concreteness and Context are Valuable
Events cost money to produce. Curating ideas into organized information and content takes time and a certain amount of talent. Making a tangible product or executable services requires time, materials, and management. And doing the research to combine and present information or expertise through the lens of my business can be beneficial.
I’m also willing to pay for some filters to be applied, like knowing that my fellow community members have also invested money to be here, so we’ll all try and squeeze the most value from the experience and contribute in kind.
3. Mistakes Cost Money
Many times, I pay for someone’s expertise or knowledge because I’m paying for the mistakes they’ve already made. I’m buying shortcuts, to a degree. Perhaps they’ve already learned how to apply theoretical knowledge in my industry to a practical solution. Perhaps they’ve failed three times before the fourth time was a charm, and I’m getting the benefit of seeing those potential obstacles before I hit them myself.
Precedent isn’t always proof, but the value in a case study or experienced perspective is that it can help me better navigate the situation that *I* might be faced with, and benefit from someone else’s hands getting dirty first. I know that there are plenty of things I don’t know that I’ve gladly paid for so I can shorten my learning curve and add other people’s context and experience to my ideas.
Value is undoubtedly in the eye of the beholder. Only you can choose for yourself whether spending the money to learn something new is a good risk, and whether you’re likely to walk away better equipped than you were before. Sniffing out the snake oil is partially your job and the due diligence of a business weighing their potential investments. That’s been the truth since the days of hair tonic being hawked on the street in tents.
Don’t think you’re going to get your money’s worth? Don’t pay.
But just because a single endeavor might not be worth the money doesn’t mean that the idea of charging money for something is out of line. And that means that MLM and “make money online” scams will abound – the opportunists have always existed. Bad apples don’t spoil the entire barrel.
Let’s remember that we live in a world of free enterprise, thank goodness. And the good side: there will always be a great deal of valuable, helpful, and truly useful information, events, and people across the web that cost a few bucks to access.
We have to put filters on and do some homework. But having the opportunity to earn a living based on the knowledge you’ve built over your career and how you assemble, share, and apply it?
That’s more than okay with me.
Love it Amber! This, from my own bio: “My only true expertise is that which is born from my own mistakes. This experience, these mistakes, and my own personal take on things,… I present to you here.”
.-= James Ball´s last blog ..Hey, This Isn’t Social Media! =-.
Love it Amber! This, from my own bio: “My only true expertise is that which is born from my own mistakes. This experience, these mistakes, and my own personal take on things,… I present to you here.”
.-= James Ball´s last blog ..Hey, This Isn’t Social Media! =-.
This is a great point, made very concretely. But I think there is a line between the kind of paid content you are describing and mass market content.
When narrow expertise is applied to a problem, that is valuable. Learning how to be a software developer is hard, having someone help you through the process and certify that you have done it is valuable. Being a good blogger is hard, and it’s valuable to get help. In the financial arena, paid research is a big part of the way things work.
But when it comes to mass market content, I think the value is often transferred the other way. Tim O’Reilly, a publisher plugged into open source, has said that “obscurity is more dangerous than piracy.” When I take the time to watch mass-appeal media online, a youtube video or a newspaper article or a television episode, I’m doing them the favor of giving my attention. It’s their obligation to make profitable use of it and build a business model that works. When publishers try to just DRM the content and charge a fee they are being lazy. And often ruining the experience of the consumer.
Some content and expertise must be paid for and deserves to be paid for. When consumers complain, it is usually because content they like is being provided exclusively via a business model they don’t like. Sometimes they are wishing for the economically impossible. But other times they have a legitimate gripe.
.-= Richard Tibbetts´s last blog ..Parque de las Ciencas aka Space Rocket Plaza =-.
This is a great point, made very concretely. But I think there is a line between the kind of paid content you are describing and mass market content.
When narrow expertise is applied to a problem, that is valuable. Learning how to be a software developer is hard, having someone help you through the process and certify that you have done it is valuable. Being a good blogger is hard, and it’s valuable to get help. In the financial arena, paid research is a big part of the way things work.
But when it comes to mass market content, I think the value is often transferred the other way. Tim O’Reilly, a publisher plugged into open source, has said that “obscurity is more dangerous than piracy.” When I take the time to watch mass-appeal media online, a youtube video or a newspaper article or a television episode, I’m doing them the favor of giving my attention. It’s their obligation to make profitable use of it and build a business model that works. When publishers try to just DRM the content and charge a fee they are being lazy. And often ruining the experience of the consumer.
Some content and expertise must be paid for and deserves to be paid for. When consumers complain, it is usually because content they like is being provided exclusively via a business model they don’t like. Sometimes they are wishing for the economically impossible. But other times they have a legitimate gripe.
.-= Richard Tibbetts´s last blog ..Parque de las Ciencas aka Space Rocket Plaza =-.
Amber,
I joined Third Tribe and I am an industry type. Why? Because I respect the opinions of the organizers and I think I can learn from them. That justifies the cost to me. There is value. If I find that their Third Tribe content is being spread for free then I will stop paying. My expectation is that I am part of a ‘club’ that will be of value. That is what you pay for: value.
Free content being splattered all over the web provides value only if heard by the right folks at the exact right time in the right context. Now, if I can take that ‘free’ information and frame it for a client to benefit their operation then there is value thus it needs to be paid for.
We are paid to filter and apply content if we are doing our jobs.
.-= Frank Reed´s last blog ..Google’s Super Bowl Ad Not the End of Civilization =-.
Right, and the point there, Frank, is that YOU saw value there because of your experience with those folks. So you spent the money.
If you didn’t see the value for whatever reason, you wouldn’t. Right?
Value is subjective. Which is why some businesses work, others don’t, and why every business has its relevant market. No such thing as a universal notion of what’s valuable, or what’s worth spending money on.
Amber,
I joined Third Tribe and I am an industry type. Why? Because I respect the opinions of the organizers and I think I can learn from them. That justifies the cost to me. There is value. If I find that their Third Tribe content is being spread for free then I will stop paying. My expectation is that I am part of a ‘club’ that will be of value. That is what you pay for: value.
Free content being splattered all over the web provides value only if heard by the right folks at the exact right time in the right context. Now, if I can take that ‘free’ information and frame it for a client to benefit their operation then there is value thus it needs to be paid for.
We are paid to filter and apply content if we are doing our jobs.
.-= Frank Reed´s last blog ..Google’s Super Bowl Ad Not the End of Civilization =-.
Right, and the point there, Frank, is that YOU saw value there because of your experience with those folks. So you spent the money.
If you didn’t see the value for whatever reason, you wouldn’t. Right?
Value is subjective. Which is why some businesses work, others don’t, and why every business has its relevant market. No such thing as a universal notion of what’s valuable, or what’s worth spending money on.
I loved this article! It think business owners,in an effort to find a captive audience, are giving away too many free stuff. Consumers these days almost expect to be given something for free, this trend needs to stop.
Thank you for shedding light on what might be an uncomfortable subject for some.
I loved this article! It think business owners,in an effort to find a captive audience, are giving away too many free stuff. Consumers these days almost expect to be given something for free, this trend needs to stop.
Thank you for shedding light on what might be an uncomfortable subject for some.
Goodness knows I agree that expertise should be paid for. How else would any of us hope to make a living ?
But, and here comes the but that Chris Brogan says means, “disregard everything I have said so far”.
But, it is like finding a wonderful party where there are no velvet ropes and everyone is talking to you and treating you as an equal and sharing ideas.
Then half way through, when you are really enjoying yourself and you have told the cab to go home, someone throws up the ropes and says you can’t come here anymore, or the movers and shakers take the party elsewhere to an exclusive after-party where you have to pay.
Some of us feel like outsiders at the party when we thought we had a free invite.
.-= Lucy Thorpe´s last blog ..Twitter stars, who is your guilty celebrity follow ? =-.
Lucy – the problem with that approach is that (sorry to be harsh here) no one owes you access to them or their information. There are still plenty of free avenues to interact with those people, if you’re referring to Third Tribe.
They still have blogs, and Twitter presences, and tweetups and all that jazz. Lots of ways to benefit from all the free content they’ve been putting out for years, and will continue to do. It’s not moving from one model to the other or taking anything away, it’s creating some areas where people will pay for additional face time, and personalized attention and advice. It’s an addition, not a subtraction. Even if they did change their minds, though, that’s their prerogative. And as much as we may love the free stuff and lament it if it disappears, it’s a benefit, not an entitlement.
It’s no different than me saying sure I’ll have coffee with you to get acquainted and share a few thoughts, but if you want to hire me for services, I have fees. Business people have to draw lines somewhere, and access to some information has to be on a more limited basis for purposes of scale and – as you said – making a living.
If everything is free, nothing is truly valuable.
Goodness knows I agree that expertise should be paid for. How else would any of us hope to make a living ?
But, and here comes the but that Chris Brogan says means, “disregard everything I have said so far”.
But, it is like finding a wonderful party where there are no velvet ropes and everyone is talking to you and treating you as an equal and sharing ideas.
Then half way through, when you are really enjoying yourself and you have told the cab to go home, someone throws up the ropes and says you can’t come here anymore, or the movers and shakers take the party elsewhere to an exclusive after-party where you have to pay.
Some of us feel like outsiders at the party when we thought we had a free invite.
.-= Lucy Thorpe´s last blog ..Twitter stars, who is your guilty celebrity follow ? =-.
Lucy – the problem with that approach is that (sorry to be harsh here) no one owes you access to them or their information. There are still plenty of free avenues to interact with those people, if you’re referring to Third Tribe.
They still have blogs, and Twitter presences, and tweetups and all that jazz. Lots of ways to benefit from all the free content they’ve been putting out for years, and will continue to do. It’s not moving from one model to the other or taking anything away, it’s creating some areas where people will pay for additional face time, and personalized attention and advice. It’s an addition, not a subtraction. Even if they did change their minds, though, that’s their prerogative. And as much as we may love the free stuff and lament it if it disappears, it’s a benefit, not an entitlement.
It’s no different than me saying sure I’ll have coffee with you to get acquainted and share a few thoughts, but if you want to hire me for services, I have fees. Business people have to draw lines somewhere, and access to some information has to be on a more limited basis for purposes of scale and – as you said – making a living.
If everything is free, nothing is truly valuable.
I think this also applies to (or maybe especially for) consultants. I occasionally have clients question strategy, planning or research time allocated on invoices and it’s important that consultants arm themselves with the tools to not only be able to counter objections to thought leadership based charges but preempt them. During the first few months of an engagement preemption might not be difficult but it is my experience that clients tend to take things such as expertise and experience for granted.
Being able to remind them that there is a opportunity cost for not making the right decisions or implementing the right strategies in a timely way is critical.
I think this also applies to (or maybe especially for) consultants. I occasionally have clients question strategy, planning or research time allocated on invoices and it’s important that consultants arm themselves with the tools to not only be able to counter objections to thought leadership based charges but preempt them. During the first few months of an engagement preemption might not be difficult but it is my experience that clients tend to take things such as expertise and experience for granted.
Being able to remind them that there is a opportunity cost for not making the right decisions or implementing the right strategies in a timely way is critical.
I think you’ve put the points across well, Amber. The one thing I’d add as the “elephant in the room” is that often the folks complaining most vociferously about stuff on the web not being free, are the ones who plan to use it to upgrade their skills so they can then charge others for their expertise.
More than a little hypocritical, I’d say. And yea, I pay for ebooks, donate to open source projects I find valuable, and joined Third Tribe because I fully intend to leverage what I learn to improve my services and income.
Paul
.-= ThompsonPaul´s last blog ..thompsonpaul: Note though – these Analytics plugins for self-hosted WP only. AFIK still can’t add analytics to wordpress.com due to javascript conflicts. =-.
That’s an interesting point. I hadn’t thought of that, but you’re probably right. I don’t know very many people that have decided that they’ll take all the information they absorb and then just put it all back out free of charge themselves. 🙂
I think you’ve put the points across well, Amber. The one thing I’d add as the “elephant in the room” is that often the folks complaining most vociferously about stuff on the web not being free, are the ones who plan to use it to upgrade their skills so they can then charge others for their expertise.
More than a little hypocritical, I’d say. And yea, I pay for ebooks, donate to open source projects I find valuable, and joined Third Tribe because I fully intend to leverage what I learn to improve my services and income.
Paul
.-= ThompsonPaul´s last blog ..thompsonpaul: Note though – these Analytics plugins for self-hosted WP only. AFIK still can’t add analytics to wordpress.com due to javascript conflicts. =-.
That’s an interesting point. I hadn’t thought of that, but you’re probably right. I don’t know very many people that have decided that they’ll take all the information they absorb and then just put it all back out free of charge themselves. 🙂
Thanks for the very well balanced and insightful post Amber.
I like the way you’ve mentioned the snake oil and that there is lots of that available, but there is also a lot of valid and important information to learn from.
And you aren’t saying that everything should be free on the internet–some of us have learned in the trenches, by purchasing a little snake oil ourselves, and by making costly mistakes.
If we can offer our expertise and save our clients from the big expensive learning curve, then we deserve to be paid for that.
Excellent!
Kathleen
.-= Kathleen Sullivan´s last blog ..Uploading Images to WordPress =-.
Thanks for the very well balanced and insightful post Amber.
I like the way you’ve mentioned the snake oil and that there is lots of that available, but there is also a lot of valid and important information to learn from.
And you aren’t saying that everything should be free on the internet–some of us have learned in the trenches, by purchasing a little snake oil ourselves, and by making costly mistakes.
If we can offer our expertise and save our clients from the big expensive learning curve, then we deserve to be paid for that.
Excellent!
Kathleen
.-= Kathleen Sullivan´s last blog ..Uploading Images to WordPress =-.
Amber, you said, “If everything is free, then nothing is truly valuable,” in the comments, and I think that sums it up pretty nicely. Some things should be free… I have to tell/show people enough about how I do what I do for them to decide I’m credible, to trust in my abilities. Then I have the opportunity to sell those services for dollars. No trust, no opportunity to sell.
We have to walk a fine line between giving away enough to prove credibility and giving away everything. I don’t believe in the economy of fear… that thought process that says, “If I just share what I know, no one will need me or hire me and all my competition will gain my secrets and advantages!” I believe in sharing and helping because I enjoy doing it and because it builds trust… which doesn’t mean you have to give away all your secrets, right? 🙂
.-= Mandy Vavrinak´s last blog ..reBlog from altitudebranding.com: 3 Reasons Why Expertise Costs Money =-.
There’s always opportunity cost, and the cost of selling or doing business. As a consultant, I was always happy to help folks understand the WHAT of what I’d help them do. The HOW is the stuff I get paid for.
And as for the economy of fear, I’m with you. It’s a big ocean out there, too, and I feel like what you give comes back to you several fold. It’s worked for me so far.
Amber, you said, “If everything is free, then nothing is truly valuable,” in the comments, and I think that sums it up pretty nicely. Some things should be free… I have to tell/show people enough about how I do what I do for them to decide I’m credible, to trust in my abilities. Then I have the opportunity to sell those services for dollars. No trust, no opportunity to sell.
We have to walk a fine line between giving away enough to prove credibility and giving away everything. I don’t believe in the economy of fear… that thought process that says, “If I just share what I know, no one will need me or hire me and all my competition will gain my secrets and advantages!” I believe in sharing and helping because I enjoy doing it and because it builds trust… which doesn’t mean you have to give away all your secrets, right? 🙂
.-= Mandy Vavrinak´s last blog ..reBlog from altitudebranding.com: 3 Reasons Why Expertise Costs Money =-.
There’s always opportunity cost, and the cost of selling or doing business. As a consultant, I was always happy to help folks understand the WHAT of what I’d help them do. The HOW is the stuff I get paid for.
And as for the economy of fear, I’m with you. It’s a big ocean out there, too, and I feel like what you give comes back to you several fold. It’s worked for me so far.
This may be in a different space but relevant I think ~ I heard from a former (interior) design client today; who had NOT followed the last furnishing schedule I left for her in August 09 for her very small office 🙂 She sent me an image of what was wrong ~ I suggested a quick fix or that she return everything & start over. Great, very smart client with whom I had and still have an excellent relationship, so I asked her, having just read Amber’s post, what are the 3 reasons you pay my high Architectural and Interior Design fees?
Here is her response:
(1) I am paying you the professional, to avoid making mistakes and purchase items that are not a suitable design or the wrong sizes. We all know that a mistake is even harder to put right than making it right the first time. Mistakes cost money
(2) You spend a lot of time laying out your schedules, whether it is lighting, fixtures or furnishings or some other. These are instructions or guidelines which insure that the complete project comes and looks right together. Poor planning equates to poor looking design equates to poor return on investment.
(3) You have spent the time (many years) learning, gaining the experience & this has cost you time and money (and mistakes). You insure I have a beautiful design, without spending tons of MY time, and you make good decisions so I dont waste money and ultimately have an excellent ROI.
I may be OT posting this here but it does show how, what you write Amber can be applied across different disciplines 🙂 Needles to say I then sent my client your post. @CASUDI
Thanks for the great, tangible example from you and your client. Good stuff.
This may be in a different space but relevant I think ~ I heard from a former (interior) design client today; who had NOT followed the last furnishing schedule I left for her in August 09 for her very small office 🙂 She sent me an image of what was wrong ~ I suggested a quick fix or that she return everything & start over. Great, very smart client with whom I had and still have an excellent relationship, so I asked her, having just read Amber’s post, what are the 3 reasons you pay my high Architectural and Interior Design fees?
Here is her response:
(1) I am paying you the professional, to avoid making mistakes and purchase items that are not a suitable design or the wrong sizes. We all know that a mistake is even harder to put right than making it right the first time. Mistakes cost money
(2) You spend a lot of time laying out your schedules, whether it is lighting, fixtures or furnishings or some other. These are instructions or guidelines which insure that the complete project comes and looks right together. Poor planning equates to poor looking design equates to poor return on investment.
(3) You have spent the time (many years) learning, gaining the experience & this has cost you time and money (and mistakes). You insure I have a beautiful design, without spending tons of MY time, and you make good decisions so I dont waste money and ultimately have an excellent ROI.
I may be OT posting this here but it does show how, what you write Amber can be applied across different disciplines 🙂 Needles to say I then sent my client your post. @CASUDI
Thanks for the great, tangible example from you and your client. Good stuff.
Amber
Your comment in the comments “if everything is free then nothing is truly valuable” holds so much weight. There are those that feel they are entitled to receive your information for free. Instead of looking at a blog as consulting time or placing any value on your time in creating, they scoff at the notion of having to pay for information that helps their business (and ultimately makes them more money).
I am a member of the third tribe and actually thought it was going to be much more expensive. The time that Sonia, Brian, Darren and Chris are putting into this on top of what they do each day has to amount to something for them. Yes, they chose to create this but they created this for the members to come together and learn from each other and also them. What is so wrong with asking people recognize their time and efforts by asking them to contribute funds? There were costs associated with setting this up and they should eat that?
Some people will be the most loyal when it is free and you are helping grow their business but the minute any amount of money is even breathed, they immediately act as if you wronged them by asking for compensation and suddenly the info you were providing to them that they implemented becomes useless.
Great post as always.
Amber
Your comment in the comments “if everything is free then nothing is truly valuable” holds so much weight. There are those that feel they are entitled to receive your information for free. Instead of looking at a blog as consulting time or placing any value on your time in creating, they scoff at the notion of having to pay for information that helps their business (and ultimately makes them more money).
I am a member of the third tribe and actually thought it was going to be much more expensive. The time that Sonia, Brian, Darren and Chris are putting into this on top of what they do each day has to amount to something for them. Yes, they chose to create this but they created this for the members to come together and learn from each other and also them. What is so wrong with asking people recognize their time and efforts by asking them to contribute funds? There were costs associated with setting this up and they should eat that?
Some people will be the most loyal when it is free and you are helping grow their business but the minute any amount of money is even breathed, they immediately act as if you wronged them by asking for compensation and suddenly the info you were providing to them that they implemented becomes useless.
Great post as always.
Excellent post! This is a situation I have run into frequently these days. Just today I had a total stranger call after finding our site on the web, and then got upset when I told him our consulting fee schedule. He thought because our blog seemed so helpful, of course we’d give him free consulting advice.
I think there is a perception that all things on the Internet are free. After all, if it wasn’t free, we shouldn’t be able to access it, right? Copyright enforcement on the web has birthed many companies, yet I still think the majority of people realize that online information is governed by the same copyright laws as offline information. I’ve actually had clients be aghast when I told them they couldn’t just take photos out of Google images and use them without finding out if they were allowed. “You mean they’re not free?!”
The thing is, how are these experts suppose to live if they give all their expertise away for free? That’s where I see the disconnect in the logic. Where are they suppose to get income if they don’t use their knowledge to get it?
I for one am very happy to pay for expert advice. It’s always great to get something for free, but as a self-employed person, I’m happy to contribute to somebody else’s hard work.
.-= Bonnie Landau´s last blog ..Finding Time to Engage In Social Media =-.
Excellent post! This is a situation I have run into frequently these days. Just today I had a total stranger call after finding our site on the web, and then got upset when I told him our consulting fee schedule. He thought because our blog seemed so helpful, of course we’d give him free consulting advice.
I think there is a perception that all things on the Internet are free. After all, if it wasn’t free, we shouldn’t be able to access it, right? Copyright enforcement on the web has birthed many companies, yet I still think the majority of people realize that online information is governed by the same copyright laws as offline information. I’ve actually had clients be aghast when I told them they couldn’t just take photos out of Google images and use them without finding out if they were allowed. “You mean they’re not free?!”
The thing is, how are these experts suppose to live if they give all their expertise away for free? That’s where I see the disconnect in the logic. Where are they suppose to get income if they don’t use their knowledge to get it?
I for one am very happy to pay for expert advice. It’s always great to get something for free, but as a self-employed person, I’m happy to contribute to somebody else’s hard work.
.-= Bonnie Landau´s last blog ..Finding Time to Engage In Social Media =-.
The pendulum has swung too far to the everything-should-be-free, open source mindset. Unfortunately the only defence currently against this model is hey people made money from this in the past (when control was in the hands of the originater/ owner), why can’t I get some? Even the most open-minded social media operator has bills to pay.
As you said value is subjective and some people are discovering to their horror that their value propositions aren’t as iron clad as they thought. The newer models addressing this issue are still finding their way- and the backlash occurs in many instances when first movers have staked a claim. Jealousy is alive and well (and doesn’t cost anything)
This is a great post about creating walled gardens of content that cost money to enter, Amber. Here’s the deal: if it costs money then it’s up to the content curators to insure subscribers feel that they get sufficient value for the price they pay. If not they are free to leave the service. If enough people decide it’s not worth the money it will probably eventually cost the curators too much time and effort to keep the service going. On the flip-side if the curators continue to create value people will continue to pay for their content with more joining along the way. It’s no different than if they were manufacturing a product, it’s Business 101.
On the specific example, I decided not to join Third Tribe because I wasn’t clear on what the value proposition was in my case.
.-= turbobrown´s last blog ..turbobrown: 3 Reasons Why Expertise Costs Money http://amplify.com/u/1u95 =-.
That’s exactly it. If the money they charge for their stuff creates a crew of people who think they got nothing, backlash ensues. You can’t build a business on an empty promise.
This is a great post about creating walled gardens of content that cost money to enter, Amber. Here’s the deal: if it costs money then it’s up to the content curators to insure subscribers feel that they get sufficient value for the price they pay. If not they are free to leave the service. If enough people decide it’s not worth the money it will probably eventually cost the curators too much time and effort to keep the service going. On the flip-side if the curators continue to create value people will continue to pay for their content with more joining along the way. It’s no different than if they were manufacturing a product, it’s Business 101.
On the specific example, I decided not to join Third Tribe because I wasn’t clear on what the value proposition was in my case.
.-= turbobrown´s last blog ..turbobrown: 3 Reasons Why Expertise Costs Money http://amplify.com/u/1u95 =-.
That’s exactly it. If the money they charge for their stuff creates a crew of people who think they got nothing, backlash ensues. You can’t build a business on an empty promise.
Absolutely spot on Amber. I think we’re all too conditioned to expect everything (or a lot of things) for free. We don’t take into consideration all the hard work and effort that goes into creating something from scratch. Great post!
Absolutely spot on Amber. I think we’re all too conditioned to expect everything (or a lot of things) for free. We don’t take into consideration all the hard work and effort that goes into creating something from scratch. Great post!
I think this is a great discussion and could easily move on to talk about the whole notion of ‘free’ as applied to products as well as services. On the one hand no one under the age of about 30 expects to pay for muaic downloads anymore but instead they pay for concert tickets, a new model is emerging.
But on the otherhand, the free newspaper content we have grown to rely on could soon start to cost money and what a stink that has caused !
So music, news, intellectual services, new ways of packaging them up all appear to be up for grabs at the moment. Which model will prevail ?
Thanks Amber for a stimulating discussion on a genuinely interesting subject.
.-= Lucy Thorpe´s last blog ..Twitter stars, who is your guilty celebrity follow ? =-.
I think this is a great discussion and could easily move on to talk about the whole notion of ‘free’ as applied to products as well as services. On the one hand no one under the age of about 30 expects to pay for muaic downloads anymore but instead they pay for concert tickets, a new model is emerging.
But on the otherhand, the free newspaper content we have grown to rely on could soon start to cost money and what a stink that has caused !
So music, news, intellectual services, new ways of packaging them up all appear to be up for grabs at the moment. Which model will prevail ?
Thanks Amber for a stimulating discussion on a genuinely interesting subject.
.-= Lucy Thorpe´s last blog ..Twitter stars, who is your guilty celebrity follow ? =-.
Really outstanding point about “paying for the mistakes they’ve already made”. I think that’s one of the primary reasons we week out other’s expertise, because at times, the going-at-it-alone thing scares the heck out of us, or we simply don’t have the time or money to give it a try and ultimately come up short – in that respect, it pays to have someone to “hold your hand” through part of the journey – and the BEST type of outside consultant in my mind is someone who will not only help you to get where you want to be, but show you HOW they got there – giving you the keys for success and putting you in the drivers seat.
Really outstanding point about “paying for the mistakes they’ve already made”. I think that’s one of the primary reasons we week out other’s expertise, because at times, the going-at-it-alone thing scares the heck out of us, or we simply don’t have the time or money to give it a try and ultimately come up short – in that respect, it pays to have someone to “hold your hand” through part of the journey – and the BEST type of outside consultant in my mind is someone who will not only help you to get where you want to be, but show you HOW they got there – giving you the keys for success and putting you in the drivers seat.
I thought this was a great post with thoughtful insight Amber! Do you think that we may create some of this inadvertently by not setting expectations appropriately up front? I just finished reading Chris Guillebeau’s “279 Days to Overnight Success” and he mentioned the conflict that ensued when he added paid products to his site. I think when people have come to expect things for free, and then there is a shift to free/paid model, some people will find that off putting. But if you build the following with the expectation that some information/services will be paid (eventually if not already available) then that heads off some of the negativity and potential conflict.
I think that’s the balance, Christy. Folks are getting miffed because they think something (access) is taken away from them when you start charging for it. It’s sometimes possible to set expectations, but not always. I think clear communication is key, as well as being willing to sacrifice a huge audience of free consumers versus narrowing your field to those that are willing to pay for what you have to offer.
I thought this was a great post with thoughtful insight Amber! Do you think that we may create some of this inadvertently by not setting expectations appropriately up front? I just finished reading Chris Guillebeau’s “279 Days to Overnight Success” and he mentioned the conflict that ensued when he added paid products to his site. I think when people have come to expect things for free, and then there is a shift to free/paid model, some people will find that off putting. But if you build the following with the expectation that some information/services will be paid (eventually if not already available) then that heads off some of the negativity and potential conflict.
I think that’s the balance, Christy. Folks are getting miffed because they think something (access) is taken away from them when you start charging for it. It’s sometimes possible to set expectations, but not always. I think clear communication is key, as well as being willing to sacrifice a huge audience of free consumers versus narrowing your field to those that are willing to pay for what you have to offer.
Great discussion. I think the combination of free and fee-based content has great merit, and I am amazed that others have a problem with it. Why should we expect experts to give everything away because they are so willing to share their knowledge? And, we have the choice.
I have been a bank marketer for over 20 years, and it is the same in our industry. It’s amazing how many people now believe that banking accounts and services should be free–from checking (one of the most costly, labor-intensive accounts a bank offers), to online banking, bill pay, ATMs, debit cards, etc. In many instances, vendors charge hard fees for every customer using online banking and bill pay, and ATM networks charge hard fees when customers use them. Yet, we’re supposed to absorb all of these costs and give our accounts and services away. Experts estimate that 80-90% of all personal checking accounts cost banks money.
We have become a society that expects “free.” Free news, free advice, free music, free web content, free photos…and yes, free banking. And in retail, we’ve come to expect deep discounts. Businesses cannot survive if they aren’t profitable. And, if businesses don’t survive, the jobs these consumer have don’t survive either. Earning a reasonable profit is a positive, not a negative. I just don’t know how we get back to that! Surely, we can find a balance.
Great discussion. I think the combination of free and fee-based content has great merit, and I am amazed that others have a problem with it. Why should we expect experts to give everything away because they are so willing to share their knowledge? And, we have the choice.
I have been a bank marketer for over 20 years, and it is the same in our industry. It’s amazing how many people now believe that banking accounts and services should be free–from checking (one of the most costly, labor-intensive accounts a bank offers), to online banking, bill pay, ATMs, debit cards, etc. In many instances, vendors charge hard fees for every customer using online banking and bill pay, and ATM networks charge hard fees when customers use them. Yet, we’re supposed to absorb all of these costs and give our accounts and services away. Experts estimate that 80-90% of all personal checking accounts cost banks money.
We have become a society that expects “free.” Free news, free advice, free music, free web content, free photos…and yes, free banking. And in retail, we’ve come to expect deep discounts. Businesses cannot survive if they aren’t profitable. And, if businesses don’t survive, the jobs these consumer have don’t survive either. Earning a reasonable profit is a positive, not a negative. I just don’t know how we get back to that! Surely, we can find a balance.
Not been past this way before, you can thank Matt Chevy for rectifying that. This is interesting to me. I left a pretty well paid job last summer to set up my own business. I was paid to leave so I had some money to steer me through this initial period (thank goodness!). I’m finding my way and getting paid to deliver service. Each paid engagement builds confidence and keeps the good whip afloat a while longer yet. I want this thing to work soooo badly.
And, I choose to do stuff for free too. Why? Well it does help to build and raise awareness sure, and it’s also about making a contribution. One of my previous roles was to set up and lead a corporate responsibility team for a large organisation. We did some great fun purposeful projects for staff, customers, and society @ large. Well – just because I’m now a teeny tiny organisation doesn’t mean I shouldn’t keep that social engagement going.
I guess it all comes down to a sense of balance. Probably why I called my company What Goes Around Limited.
Good work you’re doing here Amber, I’ll stop by again afore long.
.-= Doug Shaw´s last blog ..Food – A Great Way to Community Connectedness =-.
Not been past this way before, you can thank Matt Chevy for rectifying that. This is interesting to me. I left a pretty well paid job last summer to set up my own business. I was paid to leave so I had some money to steer me through this initial period (thank goodness!). I’m finding my way and getting paid to deliver service. Each paid engagement builds confidence and keeps the good whip afloat a while longer yet. I want this thing to work soooo badly.
And, I choose to do stuff for free too. Why? Well it does help to build and raise awareness sure, and it’s also about making a contribution. One of my previous roles was to set up and lead a corporate responsibility team for a large organisation. We did some great fun purposeful projects for staff, customers, and society @ large. Well – just because I’m now a teeny tiny organisation doesn’t mean I shouldn’t keep that social engagement going.
I guess it all comes down to a sense of balance. Probably why I called my company What Goes Around Limited.
Good work you’re doing here Amber, I’ll stop by again afore long.
.-= Doug Shaw´s last blog ..Food – A Great Way to Community Connectedness =-.
one important thing that i don’t think that has been mentioned in this most excellent array of comments, is that many bloggers use the “free” model as a strategy to get more readers, which is why many may feel like Lucy – bait and switch. as a new blogger, i have read many posts suggest that bloggers offer something free right from the start, so that readers feel like they’re getting something. this is WITH the intention to charge later. it seems that the very model that bloggers used to build community as finally backfired. are the consumers really to blame, or did the blogging community, using a bait and switch tactic and not offering content out of the “goodness of their own hearts” create this conundrum?
one of the blogs i read regularly that does a great job of mixing paid vs. free content is naomi’s “ittybiz”, which might be a good model for folks starting out who are coming online with a great deal of offline expertise. i say, set the expectation from the beginning in order to avoid hard feelings. still, i agree with your insights here and thank you for them!
also – came this way via matt chevy’s “friday quick hits.” a little marketing intel for ya!
.-= Tiffany Thompson´s last blog ..“Get Off Your Ass” Friday at Help Yourself =-.
one important thing that i don’t think that has been mentioned in this most excellent array of comments, is that many bloggers use the “free” model as a strategy to get more readers, which is why many may feel like Lucy – bait and switch. as a new blogger, i have read many posts suggest that bloggers offer something free right from the start, so that readers feel like they’re getting something. this is WITH the intention to charge later. it seems that the very model that bloggers used to build community as finally backfired. are the consumers really to blame, or did the blogging community, using a bait and switch tactic and not offering content out of the “goodness of their own hearts” create this conundrum?
one of the blogs i read regularly that does a great job of mixing paid vs. free content is naomi’s “ittybiz”, which might be a good model for folks starting out who are coming online with a great deal of offline expertise. i say, set the expectation from the beginning in order to avoid hard feelings. still, i agree with your insights here and thank you for them!
also – came this way via matt chevy’s “friday quick hits.” a little marketing intel for ya!
.-= Tiffany Thompson´s last blog ..“Get Off Your Ass” Friday at Help Yourself =-.