To Free…Or Not To Free?
"Begone, wretched punster!"
(Lousy pun. Sorry. Don’t know how that one slipped by!)
But seriously, folks…
How do you respond to people who think just because you’re capable and available, you’ll work for free?
Is there such a thing as a ‘family and good friends’ rate?
Can you do work for free and still make it pay?
Yes. And Yes. I’m here to make sure you are a success in your business.
I also recognize that all take and no give makes for an unhealthy planet. Bad Mojo. Hurt feelings, too, sometimes.
But because many people think you’re only as good as the rate you charge, you have to be careful how you address these situations.
So here’s my take on the subject: Generally speaking, charge your family and friends for your services. Charge them less than your normal rate -but charge them, nonetheless. Working on behalf of your family or friends is tricky enough without doing it for free. That can really open up a big can o’ worms.
But what about your favorite charity, your child’s school, your church, synagogue or temple? Well, if you are tempted to do something pro bono, i.e. for no fees at all -then at least make the most of your generosity. Send out a press release to relevant media that explains just exactly what it is you’re doing for whom -and why you’re doing it. Make certain you get recognition for your efforts and your donation -at the least, a nice letter you can use as a testimonial to your goodness; at the most, an inscribed plaque for the desk and considerable publicity.
Bottom line, if you’re going to work for nothing, make sure your world knows what a great guy or girl you are to donate your valuable expertise.
One more point on donating your services; make absolutely certain that the organization you’re working with understands exactly the extent and the regular price of the services you’re providing. You don’t want people to think that just anyone can create the same magic that you can.
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Filed Under: Good Business Mojo, Personal Mojo on
Comments (10)
PS Sorry – pressed send by mistake! We do indeed do charity work for free and yes I use press releases adapted from your excellent template at Video Business Advisor Steve. Thanks.
Anybody who plays a keyboard knows how that goes! “Can you accompany my kid for festival?” “Can you play for my Christmas party? ” ” How about playing for this service?” etc. Try asking your lawyer a question. $100 for 5 min. over the phone.
Funny – Dave Ramsey (askdave@daveramsey.com) addressed this topic just the other day … great minds and all that … in answering a small business owner’s question: “I have friends who’ve told me they’d like to use my services, but I am hesitant to charge them because they’re friends. How do I get past that?”
Ramsey pretty much said what Doc says – people have to use someone, why not you; and, charge enough so that you’ll be viewed as a pro versus an amateur.
The suggestion that really caught my eye? If you still feel uncomfortable charging your friends, “tell them you’ll do the work for free if they will help you find six new clients.”
If you’re going to trade – THAT’S the way to do it!
Carol, I feel your pain. “Oh, Doc! Come to our party. Oh -and bring your keyboards, please.” Yeah. Right. Saying “no” actually cost me a friend, once. On second thought, not much of a loss, eh?
I have an article I wrote on 12 different ways to tell people you have to charge them -I’ll try and find it and get it up here soon.
Sond, that is indeed excellent advice IF you can count on the people to make the effort to find six new clients. Thanks for weighing in.
I hate working for free. However, the reason I hate working for free is not what one would probably expect. It is a general principle of life that when you give something for free the recipient will not value it. You run the very great risk of being insulted.
Sometimes I think there are two types of people in the world: those who value machinery or property and those who do not. Some people just have a natural respect for other people’s time and produce and would never ask for free services even if hoping to get them. The others may end up even complaining about aspects of the free services they obtained.
Great point, Wesley. I agree about a certain element of the population feeling that your free work is valueless. The morons. Nothing would bug me more than to do a freebie and have someone complain about my efforts.
As a self-described soft touch, I’ve donated years of time for arts organizations, church, March of Dimes, Boy Scouts, you name it. What I’ve learned is that over the years, especially as technology has turned expertise into a commodity, the perceived value of my volunteer marketing/design work has diminished, regardless of its success or awards won. Not able to charge consultant fees anymore for paying work, I’ve pulled back on giving it away, because I’ve got to make ends meet.
The short of it is, if I charge, even a reduced rate, people understand this is what I do for a living. I could tell some horror stories.
I hear you talking, Mr. Pickleman, and thanks for taking the time to do so. I fight constantly with my business manager about giving away too much -I’m of the opinion you can never give away too much -but, alas, one still has to make a living. The Tip Jar concept just hasn’t worked out too well for me.
I appreciated your comment, “…as technology has turned expertise into a commodity, the perceived value of my volunteer marketing/design work has diminished.” This is a whole ‘nother subject indeed and long-timers (that means you & me, John) really see its impact in our business life. Heck, our personal life too, for that matter.
When doing lower-than-rate or free work, I always create a cost estimate, showing normal rates, then include a discount to arrive at the final number (even if it’s zero)
This way, the client sees what a deal they’re getting, and you’re not remember as “the guy who does stuff cheap”. Also, it’s the best way to get a donation letter from a non-profit, so you can deduct your largess on your taxes.
Now, if only I could discover a way to deduct my large ass on my taxes……
Tim, that’s an excellent idea, formally sharing the normal rate and discount in a document, rather than just telling them “Well, it’d normally cost you $xxxxx, but I’ll give you a discount of XX percent, so the total will actually be just $xxxxx.”
And of course, getting a donation letter for the deduction is a Very Good Thing, too.
Sorry, but I have no suggestions about deducting your large ass, though. Best talk to your accountant. Or your trainer.
Thanks for checking in -
Doc/Steve