Do you remember Dire Straits and their song ‘Money For Nothing ‘ – this sums up information marketing because all the information that people are looking for is out there on the internet for free.
So why do people buy info-products if they can get the information for free?
It mainly has to do with convenience and speed – if we can aggregate, sort and organise information for other people, who have busy lives, and provide a short-cut to the information they are seeking, this is valuable and well-worth paying for.
However, a lot of the work that we do online is essentially free in order to position ourselves as someone who our readers can ‘know, like and trust’ BEFORE they invest in a paid product.
However, the importance of charging for information cannot be under-estimated and I have therefore copied an extract from a very good article by Michael Hyatt that explains why it is important to charge for our products and services:
This forced me to get very clear about why charging for my work is not only acceptable but essential. Rather than feel guilty, I’m convinced it’s important for at least three reasons.
- Because of how it changes your mindset When you start charging for your services, you go from being an amateur to being a pro. You are suddenly more accountable.
- It matters if you show up. You don’t get paid if you don’t.
- It matters if you do quality work. People won’t buy if you don’t.
- It matters if you are consistent. You won’t get repeat customers or grow your business if you don’t.
In short, when you charge, you respect yourself and your own work more. It creates value in your own mind.
- Because of how it improves your customers’ experience. People don’t respect what they get for free. There are exceptions, I’m sure, but not many. I have seen this time and time again.For example, I occasionally give away free tickets to one of my conferences. Often, the people who get them don’t come to half the sessions—or don’t pay attention when they do. Worse, they sometimes cancel at the last minute, not realizing I still incur costs.The truth is that until people make an investment, they are not invested in the outcome. This is why I now always make sure they pay something and have “skin in the game.”But charging also improves the user-experience. Recently, I bought a very high-end marketing course. It cost me almost $2,000.You can bet I just didn’t stick it on the shelf and forget about it. Instead, I rearranged my entire schedule, so I could get up an hour earlier and work through the material.Because I paid so much, I was more focused, more committed to working through every exercise, and more determined to apply the principles to my business.The author of the course promised that it would be life-changing. But it’s only true if the students follow-through on his teaching. The fact that he charged so much for the course improved the chances of that happening.
- Because of how it impacts the world. This is the most compelling reason of all to me. Charging for your services is a necessity if you are going to support your family. If you don’t charge, you won’t be doing what you do for long.But even more importantly, making money provides you with the opportunity to share with those in need. The more you make, the bigger impact you can have.In fact, within the bounds of my calling and ethical practice, I believe I have the moral obligation to make as much money as I can. Why? Because there are people in need, and I have the opportunity to help them.
You can read the full article here: http://michaelhyatt.com/do-it-for-the-money.html[/content_box_light_green]
When I was in consulting, I was told that people will not value that which they get for free.
It is totally true.
If you’ve ever paid for information then you will know that you are much more motivated to take action on it and get a return on your investment.
I also think that many of us under-estimate just how much value we each have to offer – we are all unique with enormous potential for creativity. It’s just a question of honouring that potential by taking some action.
Whilst your first product might be slightly horrible, if you keep working on the skill of product creation you will quickly improve.
If you haven’t yet got a product or service that you can offer then you might like to take a quick peak at this video of Marlon Sanders about the need to complete your product – if you’ve got a lot of half-finished projects sitting on your hard-disc, then this could be the kick up the backside that you need:
If you can complete you half-done projects then perhaps you too can start earning money for nothing from the ‘digital dust’ on your computer! On the other hand, you might like to invest in my product – Product Creation Renegade – if you don’t yet know where to start with this ‘Money For Nothing’ info-marketing model!