I’m calling it right now. This warm and fuzzy ‘free as a business model’ or ‘gift economy’ or (insert trendy marketing term name here) marketing strategy has officially jumped the shark.
For those of you not familiar with what I am talking about, in a nutshell, there is a growing group of online marketing ‘gurus’ that continue to advocate giving away full and complete knowledge, solutions and even products for free with the strategy in the hopes that some of the folks you give these freebies to will join your mailing list, buy something from you, or help your company ‘go viral’ by spreading the word of your company on Twitter and Facebook.
Now, while I am a firm believer in helping out your fellow man as much as possible, as my grandfather used to say ‘that ain’t no way to run your sh*t’. In other words, denying the value of your product or service is simply not good business sense. Online or otherwise.
Please don’t get me wrong… creating an ebook or whitepaper to solidify your authority on a subject, or spell out the specifics of how you can help solve a problem for your prospective customers is smart marketing. Giving a free sample or creating free downloadable tool? Sure thing.
Creating a full scale product and then giving it away? Asinine.
There seems to be a growing scramble by less knowledgeable and less experienced business owners (especially Internet marketers) to get on this ‘free’ bandwagon as quickly as possible, and give away their newly created products to as many people as possible. All in the name of gaining more Diggs, Followers and Retweets.
Sure, the social marketers will jump to a quick defense that your ‘building trust’ while ‘increasing your brand’s reach’ and ‘leveraging the web to get free word of mouth advertising’. Oh, and don’t forget you’ll be ‘building your list of prospective customers that will want to hear more from you, and as they grow to trust you even more, they will actually purchase from you’.
Bullsh*t.
What is the value to your small business in a list of people that you have already _given_ your full products to for free? How many of these folks will actually _buy_ something from you? You’ve already set the precedent. You’ve given them something of value for free. Even if you tweak, optimize and supercharge your next product to the hilt, do you really think these folks will open up their wallets for you the next time?
No way.
So, unless you would like to go broke without even really trying, I highly recommend you stay far, far away from this latest nasty little trend and wait for the online world to return back to saner times.