Tuesday, March 2, 2010

Small Business Tip : Fee vs Free

small business free services
Many Small Business owners think it's reasonable to offer their services for free in order to advance their business. This method of marketing has both it's pros and cons. Some business experts have said that before you charge a fee, do it for free, advising that the experience you gain is monumental and this will allow you to quickly get clients in the door. Many have also advised that you continue to give out free services or products along the line as this will help you to get constant feedback from clients.

However, giving away your service or product for free can diminish it's value, sometimes clients may think that if your giving it to me free, then it's not worth anything. But it all depends on the industry you are in, it is definitely important for a Bakery or Cosmetic shop to give free samples. If you have something else to sell along with the freebie or if the freebie prompts the seller to buy your product, this type of marketing is essential to your business. But if your business is a service where trust is backbone of your company, giving away freebies is not a good idea.

Before giving away free samples or services, do your homework, is this good for my type of business, can I afford to do this, are my competitors doing the same thing, how will this affect my product or service. It's better to do a trial or limited access to your service or product, where the client will be prompted to pay for the service to unlock full access. There is nothing written in stone for this type of marketing but the key is to know your market and how they respond to free services and products.

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