Recently at a networking event I was talking with two friends and the subject of doing work for free versus paid came up. We all had strong opinions about it.
It seems this is an issue that all business owners face and one that needs a lot of attention.
I mentioned that I would send them this fabulous article, No, You Can’t Pick My Brain, It Costs Too Much.
They both encouraged me to write about this topic myself. I felt like I already had but realized that I although I have covered several aspects of this issue in separate posts, I had not tied it all together, which is my aim here.
You spend time and money to market your business and attract potential clients. Don’t throw your hard work out the window by giving away your time, your expertise, and your money.
Don’t get me wrong, I’m all for being generous and giving loads of helpful information away. I do it all the time with my free special report, ezines, blog posts, how-to videos, and tips on social media.
But you have to draw the line somewhere. And if you don’t set the limit, others will set it for you. It’s your business, it’s up to you to set the rules and decide how it works.
Furthermore in my experience, people who want things for free aren’t that serious or motivated to take action. People who are willing to invest are much more committed to the process.
Here are reasons why you need to stop giving away your time, your expertise, and your money.
Your Time
Time is money as a business owner. Just because someone else wants your time doesn’t mean it’s always a fit for you. Before you agree to meet up with someone in person make sure that it’s even necessary.
Sometimes if you first ask for more information via email, that will tell you everything you need to know to make a decision about how to move forward.
And if you determine you would like to talk with the person, go for a phone call or video Skype first. You can always meet later if things progress.
For more on setting boundaries and saying no, check out my posts: Grow Your Business By Saying No and Do You Have a “To Don’t” List?
Your Expertise
I hope it goes without saying that you should not give away your expertise for free. You must believe in the value of your expertise because if you don’t value it, why would you expect your clients to?
This is about being proactive and setting boundaries in advance about what you are willing, and not willing, to do for free.
That way you will be prepared when people ask you to help them for free. You will be able to confidently direct them to your paid products and services.
Your Money
Stop discounting in your business. Don’t fool yourself, discounting is still just another form of giving your knowledge away for free.
Here are five reasons not to discount your prices:
1. It’s no fun
2. It requires a time and energy you can use elsewhere
3. It creates a standard for other clients
4. You’re not getting paid what you’re worth
5. It can lower your confidence in your business
“Your value does not decrease based on someone’s inability to see your worth.” Unknown Click to Tweet
I also think it’s a smart move to post your prices on your website. It’s transparent and it saves you time and energy on people who are not willing to invest. Plus it provides a concrete structure that does not invite negotiation. For more on this, check out my video Why You Shouldn’t Be Afraid to Show Your Prices on Your Website.
Want even more information about discounting, read my post: Why Discounting is Hazardous to Your Business.
Another way you can communicate how you do business is to spell it out in a Frequently Asked Questions page on your website, have a look at my FAQ’s as an example.
Be sure you exceed expectations and provide remarkable experiences for your clients. That way they will feel good about their investment and they will be enthusiastic about recommending you to others.
Experiment to find the right balance between free and paid that works for you. Then clearly communicate the expectations and boundaries so people know how you work and what they can expect from you.
If you take action on this you will be happier, more confident, and more profitable. Now who doesn’t want more of all that? Make the decision today to be courageous and take a stand to value what you offer.
© Stephanie Ward
WANT TO USE THIS ARTICLE IN YOUR NEWSLETTER, BLOG OR WEBSITE? You can, as long as you include this information with it: Stephanie Ward is the Marketing Coach for Entrepreneurs who want to create meaningful and prosperous businesses. Grab your FREE copy of the special report ’7 Steps to Attract More Clients in Less Time’ plus business building tips, at: https://www.fireflycoaching.com.
What are your thoughts on this hot topic? Share them below in the comments section.
Hi Stephanie
We can’t agree with you more! Women’s companies in The Netherlands are earning 40% less profit than men’s companies. One of reasons is that so much is given away – free workshops, free seminars, free tips. I fully promote increasing your visibility, but not at the expense of your core product.
Charge what you are worth and target the customers that will pay you.
Cathy
Thank you for your comments Cathy, spot on!
Great explanations, Stephanie!
I have several guidelines I’ve collected over the years that help me. One is to watch for the “how” question. You can give away ideas, but when you come to the implementation, you charge for that. You know you’ve come to time to charge when the other person asks, “how would I do that?”
If you’ll pardon a moment of self-promotion, this is such a common question, I put together a toolkit on it, called Drawing the Line Between Free and Paid. It’s not free, but it is a good tool for people who perpetually struggle with charging for their work. You can find it here: http://is.gd/DrawTheLine
Thank you for sharing Becky! I love the ‘How’ trigger, a great way to know when it’s time to talk about getting paid.
And I’m so glad you shared your toolkit, if you hadn’t – I would have. It’s the perfect resource for people who need additional support in charging what they are worth. Check it out people!
Great Post Stephanie,
And thanks too for the article by Adrienne Graham. I have discovered that good colleagues / friends always insist on discussing payment before they ask. For them, I gladly would pay it forward. Over the years I can always smell those that will suck you dry for information and have learned to tell them up front what my rate is. All that said, it is still too easy for me to just open my mouth and share it all when asked. 🙂
Roberta
Sounds like you have a solid circle of colleagues and friends! I agree, it’s a delicate balance that shifts and can be situational. Thank you for sharing Roberta.
Hi Stephanie, Thank you for raising this indeed hot topic. I totally agree that people who render genuine ,well founded services that come from the heart, should be honored for their good work. What bugs me tremendously however is when I see big money being asked for events or services that have little to add to my needs, by people who basically want to earn lots of the M word. I truly feel cheated when I encounter a situation like that. Its like purchasing a pre-fab hamburger in a one star priced restaurant.
Another thing that I find hard to measure and have a problem with especially these days of crises, is that there are many people out there who ‘could use it’ but cant afford it”. Does that mean they cant have it? Because they don’t have the money? is that fair? Especially in personal development I think everyone should be given a chance, no matter, gender, age or financial situation
Thank you for your comments Ingrid. It is frustrating when a company’s pricing doesn’t match the value they deliver.
Crisis or not, there will always be people who can’t afford something they want. And luckily these days there are so many free options available on the internet and elsewhere.
Hi Stephanie,
I couldn’t agree more…it is extremely important…maybe for women even more than for men…to value our time, money and expertise and not have them valued by others. We have a saying in Dutch: Wat de gek ervoor geeft…a slightly negative interpretation of saying, indeed, that for example to some people my services maybe highly overpriced because THEY don’t need them, while to other people they are PRICELESS because I save them their valuable time and therewith money so they can work at their expertise.
Have a great day!
Thank you for sharing your thoughts Jacqueline! It’s great that you are charging what you’re worth and spending your time wisely. Wishing you continued success.
Thank you Stéphanie for your post and all others for your comments. I really learned something of help. It is always hard for me to talk about money: when, how…
Sure thing Viviane, so glad you found it valuable. You’re not alone in finding it hard to talk about money. Here are a couple of articles that might give you some ideas. http://www.selfgrowth.com/articles/what_is_your_money_blueprint.html and http://www.jannahagan.com/2012/10/getting-comfortable-talking-about-money-in-design/
I one had a triumph TR 5 a British sports car year was 1972. I could not get it to run well, it was shaking and make some strange noise and I was going up and down the canyons of LA California. So, I found a mechanic who said he could fix it. So, brought the car in this guy takes out a screw driver and put the flat end against the distributor and the round end with his ear to it. Well I thought a bit strange, does he real know anything about British cars. Then he reaches for a hammer and hit the screw drive and then took something out of the distributor and puts it back my thought is the car is rally damage now. I turn on the engine the car hums a like it is new. The whole process took 10 mints. I got the bill it was $.25 for a washer and $125.00. I asked way so expense for so little work. He said 25 cents for the wash and 125 dollars for know what to do.
What a wonderful story, Sagar! Many thanks for sharing. Indeed, specialized knowledge that takes time and experience to acquire is extremely valuable.