What Does FREE Really Mean in the Marketplace? (Or: Why People Don’t Trust “Free”)
Published by Erin Robbins under Social Media.I’ve been wrestling with a moral and business dilemma the past few weeks as I’ve prepared to go out into the world and teach people social media and technology tips for free. Oddly enough, the dilemma didn’t begin while planning the course, it’s locations or logistics… it began when I saw that people who needed this information to propel their real estate business weren’t jumping at the chance to come to a session in their own backyard to learn how to implement this stuff.
I brought up the question to my colleagues, “Is it because it’s free?” – Do people not perceive value in what is free? Do people believe that there are strings attached? If I charged $100 per person would things be different?
I was increasingly puzzled because of the number of free services we depend on each day – you have a Gmail account that you don’t pay for, yet you use it to store your emails. You Google things to find answers and do not pay for the service, yet it’s always there and used by billions. You have a Facebook account that doesn’t require money be transacted when you log on daily, there’s no meter running. What’s up with free? I needed to know. And I think I found the answer.
Yesterday, while waiting for my hotel room in New York to be available (I arrived at 6am on a red eye flight from San Francisco to be told I would not be permitted into the room until after 3pm) so after a long walk through Central Park I settled my exhausted body into a chair at a Border’s bookstore and went searching for books that might be interesting. By some stroke of luck, fate, whatever you call it, I came across Chris Anderson’s newest book, Free: The Future of a Radical Price on a shelf and began thumbing through it. Chris had wrestled with much the same questions I had about an economy that offers so much that is, in essence, “free” that we wondered how it is that there’s not more of a stir about it.
My key takeaway from Anderson’s book (for those of you that don’t have nine hours to kill in a Borders book store on a Thursday afternoon) is this:
(The following is paraphrased from Anderson’s book)
Everyone has doubts about free. People, without trying to sound ageist, are split into two camps: Those who are over 30 and those are 30 and younger.
Those who are over 30 grew up with the 20th century version of free – that being that free was limited to marketing gimmicks, prizes, or as ploys to get you somewhere then rope you in once you were a captive audience. These people are rightfully skeptical, as their experience with free is that it is nothing of the sort – we all pay sooner or later. Free is a gimmick, a marketing ploy, and when you hear “free” – be prepared to reach into your wallet.
The younger critics have a different response, that of, “Duh, of course it’s free.” This is the Google Generation – the generation that has grown up online assuming that everything digital is free. They have internalized the subtle marketing dynamic of near-zero marginal cost economics in the same way people internalize Newtonian mechanics when learning to catch a ball – you’re not thinking about it, it just happens. Creating a global economy around “free” seems too self-evident to be of note. To this generation, many things are accepted as free, so shouting out “free!” constantly is annoying because of the “duh” factor that exists already.
My thoughts: Good things can be free. Many more things will become free in years to come. Everything does not need to be free, nor should it be – but the share and spread of knowledge around topics of social media, online marketing and industry should be. If you’re paying someone hundreds or thousands of dollars to teach you this – I’d suggest paying them (or someone) to actually do the work of creating and maintaining your social media instead. Or, go online and find a free resource – there are plenty of blogs, articles and how-to guides out there available at the click of your free Google browser.


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