This is always a difficult question for small businesses and solopreneurs who often feel that they need to give expert advice free-of-charge almost as a cost-of-sale. It seems reasonable on the basis that a trades-person might meet you to inspect your house, and discuss your needs, prior to giving you an estimate for the work.
Clearly for intangible services it can be hard to distinguish between an initial conversation and consultancy, a discussion of isses and legal advice, a listening ear and paid-for coaching or therapy. For tangible services you might give a sample, a proto-type, or a limited-period trial with a clear destination between the sample, trial and full-product.
We should do the same with services. Maybe the first 3 hours (?) are free as a "discovery session" (much like a builders estimate) and thereafter there is a contract detailing needs, factors, plans, proposals and pricing, and the deliverables and chargeable basis.
It is important to establish clear boundaries for what constitutes free advice and when it transitions into a paid service. a contract or agreement requiring signature or approval is usually a good approach.
Of course there is still room to move on price. You might offer volume discounts, introductory discounts, loyalty discounts. Or you might work on a reduced rate for a case-study, testimony, product review or social media posts.
Where you are co-creating a product you may value the other party's time by reducing your costs to acknowledge their contribution. Often when it comes to product or market development I will provide advice if it is a strategic partnership or groups where there is mutual benefit or future business opportunities.
Overall however my inclination is that FREE is not good. Be clear what you are getting, it maya be a simple "Thank You" but your time and expertise must be worth something, otherwise it is worth nothing.
My concession to free stuff is three fold.
I provide free educational content (like blogs, webinars, or eBooks) that offers value but doesn’t require a significant investment of my time per individual client. This self-help approach is useful to those who cannot afford or do not need paid support.
I also allocate a certain amount of my time for pro bono work as part of my business's community service. In 2023 I made every Thursday available for James Ark Jersey, providing coaching for those that needed it. I have also been a volunteer for BeTheBusiness and done free work for Caring Cooks, helping great organisations do great things.
How do you deal with free stuff (either as someone providing or receiving)?
Adapt Consulting Company
We deliver projects and change, and improve the confidence, capacity, drive and desire of the people we work with. We understand data, technology and process and support people to drive performance and progress for purpose, profit and planet.
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