Cost of free
Bri Williams
Something strange happened when the Victorian Government made camping in national and state parks free this summer. Campgrounds were booked out but sat largely empty.
Actually, it’s not strange at all. It’s predictable.
When something is free, it’s often taken for granted. Money is a form of commitment that raises the stakes, so when there’s no payment, there’s also no pressure.
To engage prospective customers, many businesses offer free access to product trials or learning sessions. While this approach can work, it’s not as simple as it seems.
Before offering your services for free, consider:
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Will this attract the right kind of customer who is prepared to pay?
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What do we withhold so they are encouraged to upgrade?
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How many people do we need to actually participate in order for this to make sense?
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