Is “Free” Really That Enticing?

“Free” as a marketing concept is starting to lose its appeal. When I read Free: The Future of a Radical Practice a few months ago, I was caught up in the hype and believed that giving away your product for free actually works as a marketing tactic. However, in recent months I’ve considered that the companies who give away their primary product tend to have a more difficult time earning profit and ultimately just exist to exist.

Take Facebook for example. Right now the number of Facebook accounts make it the 4th largest country in the world. The WORLD!!! Yet, as recent as 6 months ago they weren’t even turning a profit. Can you imagine running your business with 300 million customers and not enjoy one dollar of profit? It’s insane! The company has been around since 2004, and has enjoyed over $716 Million dollars invested all to start profiting 5 years later. How many businesses can afford to wait 5 years for their investment to pay off?

If you start your business with a profitable model from the get-go, you will earn a living right from the beginning. You may not be the next Twitter or Facebook but you will ultimately earn a living by providing real value for your customers. Every day you will go to work knowing that what you’re doing matters to your clients enough that they’re willing to support you with their hard earned money. Free is good as a marketing tactic, but is it really a solid business model? I say no and will continue to provide value for my customers and accept payment in return.

If you’re reading, thanks to my clients who have given me their vote over the past year. It’s been a pleasure working with you all and I look forward to helping your business grow for years to come!

Advertisements