Pushing the free line too far: how far is enough, Warriors?

16 replies
Hi -

I'm a big fan of offering a lot of free content to customers/potential customers upfront. But a colleague raised a good point, about that I may be giving away too much "good stuff", which means lower sales for premium content.

So the question is, "how much is too much" free content? Limited things like free articles, pdf special reports, occasional videos, that's all normal I suppose.

I also however do things like:
+ free once-a-month webinars with unlimited Q&A (I often get 1200-2700 register for my events, 600-900 show up live, gotowebinar, I stick around for an hour+ answering detailed questions)
+ publish articles in industry magazines with top strategies revealed (usually I'll publish 6 to 15 articles a year)
+ free intensive 20+ minute "how to" videos at least once a month online
+ make free appearances at industry events as a featured speaker.

main reason for all the 'free' stuff I do is to Demonstrate value, which my customers appreciate (I've got thousands of customers, less than 1% lifetime refund/cb rate, well known in my niche).

But. Maybe I give away too much, why buy cow when free milk. One split I know the seminar presenters have used, is "GIVE them the WHAT they need to know, but SELL them the specific HOW" to do it. I understand that, but don't fully agree since you should be giving away some of your best stuff at no cost, to build trust and actually help people.

Any insights on that? I've produced over 47 dvds, created 65+ websites, sold a lot, very productive, did 91 webinars last year (most were paid), fulltime online since the late 90s, have made my living online for over a decade w/my sites. Hard work is fine, just trying to figure out how far to move, or pull back, the free line.

Or for example with youtube videos, I think I like the idea of keeping them short and frequent, like 4-5 a month that are 4-5 minutes each, rather than long 15+ minute ones.

thanks,

ken
#free #line #pushing #warriors
  • Profile picture of the author sadiecopywriter
    There's a difference between doing things for free, and doing things for promotional purposes. When you do things for promotional purposes you might not make a dime off it, but that doesn't mean you're giving it away for 'free'.

    The investment is one of time and the reward is usually new customers you can put into your sales funnel. All the new leads is how you are paid for 'free' products.
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  • Profile picture of the author David Keith
    Hey Ken,

    Like you, I have made my living online since the mid 90's. However, I have never been in the IM or MMO niches. I do study them a lot, and buy many of the products from the industry though.

    From my perspective, Having spent a ton of money in the IM industry over the years, I have pretty much come to the conclusion that almost everything you can buy...you can get for free. It really comes down to how the information is organized and how practical the product creator makes it for the user to get the desired result.

    I have never operated in a niche where almost everything people sell, other people give away. That is sorta unique to IM and the internet portion of IM.

    I would guess, that if I were going to be in the IM niche, I would organize things in such a way that any content or products I could automate and do hands off would be very low cost or free. Things like videos, pdfs....

    Basically If I can put a couple hours of work into something and create a product that has a high perceived value and actually offers some good info, then I wouldn't not mind giving that away. I would be looking at spending XX% of my time on these sort of things.

    The money in any industry is in higher end consulting or full blown products. These are systems in which both the seller and the buyer have a lot invested in the outcome.

    With automation and such, I think giving stuff away or very cheap makes a lot of sense and actually does help some people. But I think the money is in the very tip of your marketing funnel, and thats where a big part of your income earning hours should be spent.
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  • Profile picture of the author Ron Killian
    If your doing well, making the money you want and what your "selling" is converting well, why worry about it?

    If your not making the money and your "stuff" isn't converting, then it might be something to think about.

    Maybe I am missing something?
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  • Profile picture of the author Aaron Doud
    Really depends on how well you are converting and if you are making good money. If you are converting well and making good money clearly it's working. if you feel your conversions are too low maybe you are giving away too much for promotion.
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  • Profile picture of the author TopClass
    Dont think of it as giving away for "free" think of it as a promotional strategy for your products, always remember happy customers keep coming back for more. Giving a freebie once in a while to your regular clients can make them feel special in a way so they will definitely stick with you.
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  • Profile picture of the author kencalhn
    good points; thanks ... i suppose the right answer is to test as always. thanks for the insights, they sound like helpful tips.
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    • Profile picture of the author Centurian
      Depends on what you feel about your income and profit.

      There is a legitimate argument that the typical funnel model of $7 ebook to $497 back-end product only works if you have enough traffic to convert to your income needs.

      Sounds like you have positioned yourself as the go-to expert in your market. You should be able to give enough away "free" as information marketing to catch the real high-end clients.
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  • Profile picture of the author tpw
    Originally Posted by kencalhn View Post

    I understand that, but don't fully agree since you should be giving away some of your best stuff at no cost, to build trust and actually help people.

    So you are coming from the same mindset as Frank Kern.

    I believe that your paid materials must provide awesome value to your users. And all FREE content should lead to the paid content.

    So long as your FREE stuff sets the groundwork for people so get into your sales funnel or to buy your stuff, then you should be in good shape.
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  • Profile picture of the author Claire Koch
    i should be asking you this question you're already doin it why even second guess
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  • Profile picture of the author Randall Magwood
    Sounds like you're having incredible results in your business. I wouldn't change a thing, except.... the free appearances at industry events. You should charge a fee for this.
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  • Profile picture of the author MikeHumphreys
    Originally Posted by kencalhn View Post


    So the question is, "how much is too much" free content? Limited things like free articles, pdf special reports, occasional videos, that's all normal I suppose.

    I also however do things like:
    + free once-a-month webinars with unlimited Q&A (I often get 1200-2700 register for my events, 600-900 show up live, gotowebinar, I stick around for an hour+ answering detailed questions)
    + publish articles in industry magazines with top strategies revealed (usually I'll publish 6 to 15 articles a year)
    + free intensive 20+ minute "how to" videos at least once a month online
    + make free appearances at industry events as a featured speaker.

    main reason for all the 'free' stuff I do is to Demonstrate value, which my customers appreciate (I've got thousands of customers, less than 1% lifetime refund/cb rate, well known in my niche).
    Ken, how are you?

    It sounds like you're already doing a lot to provide good free content.

    Are you doing anything to track how many of these free webinar participants are becoming buyers? For example, giving them a promo code or special URL to get one of your products at a special deal?

    Couple options to monetize it further.

    First, you could make the monthly webinars a small nominal fee of say $10. You can record the webinars and offer a free replay to anyone who pays to attend but doesn't make it. If you continue to attract 600-900 participants, that's another $6000-9000 per month.

    Second option is to add more paid webinars... you can continue to do the free monthly but mention the upcoming monthly or bi-monthly webinar where you hang on the line more than an hour... offer a free replay or downloadable version of the webinar... access to any archived webinars... and so on.

    Hope that helps,

    Mike
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  • Profile picture of the author CDarklock
    My definition is simple.

    If you do not make enough money, you are giving away too much free stuff.

    But if you're happy with the amount of money you make, you can give away all the free stuff you want. Just because you could sell something doesn't mean you have to sell it. Just because you could charge more money doesn't mean you ought to charge more.

    At the same time, don't let anybody tell you that you have to give away free stuff. You can give it away free if you want, but you can put a price tag on it just as reasonably, and if they don't like it they can damn well not buy it.

    So long as you like what you make and you like what you do, that's enough. Be happy, and give away as much - or as little - free content as you want.
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  • Profile picture of the author simpleleveraging
    The danger with this so called "extending the free line etc" or whatever they call it (it changes from time to time whenever some guru wants to relaunch or rehash) is that others have said it can screw profitability and at the end of the day, making sales is one thing, being profitable and still being around is another.

    As someone much wiser than me said, don't ever give something away for free, charge them a dollar if even that. If they balk at that move on as you're only building up and postponing potential problem areas later on.
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  • I always follow this principle:

    Giving away free content is good as long as it has a purpose (goal): every piece of free content should lead to a goal: either a product, a CPA offer, an optin box, an affiliate link, etc. If you give away good quality content for free, make it lead to one specific monetizing goal.

    Giving endless quality content for free just to build "reputation" is silly, and utterly unnecessary.
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  • Profile picture of the author kencalhn
    hey thanks - good to hear from you Mike, and cdarklock, makes sense. I'm trying to experiment with different webinar models for free content delivery (multi-speaker events, faster paced)... and right re having a focus/goal/purpose for free content; usually there's embedded offers I add for premium content, so that helps.

    And right Bill, I make absolutely sure my free content is top-notch, because if I don't add value there, why would anyone continue w/paid content? is my frame of mind. In fact I market against my competitors by saying "test out all of our free content, and only buy from people whose free content actually helps you, Before spending a nickel on their paid content", as a customer advocate role, to help them. Test out whomever's free content for validity Before buying anything, as a rule of thumb. Since most people's free content is low-value in my industry, by making better value authentic professional-quality tidbits available for free, they see the value.

    "Overdeliver with great free content before asking for the sale" makes a lot of sense... key is how much/how little to give before/while asking for the sale. That's a good rule of thumb is, make your free content previews better than all your competitors' paid content, and you win over a lot of customers, which is how it should be. It's easy to compete against those who give nothing of value away, or overcharge.
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