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January 4, 2008

A Personal Model for Business Life: Who Gets How Much for Free?

ME Liz Strauss wrote this at 7:25 am

What I Already Do

Personal Identity logo

Sometimes I’m fast, and sometimes I’m so slow. Sometimes the answer is sitting right next to me.

I got to wondering why I could negotiate contracts for companies and clients, but didn’t seem to be doing the same for me. It was just the kind of problem my head doesn’t let go of. I knew it had to do with my way of looking at things.

I had too many friends and not enough customers.

Fairly soon, I saw that I needed a set of rules defining who got my work for free. I walked around trying to find where to draw the line. Then it hit me like a brick on my head!

I set limits naturally in my personal life. they’re the ones I need.

I tested the theory.

The Model to Decide Whether I’ll Do Work for Free

If I’m making a rule or model for my work life. It needs to be something that reflects me. What I realized is that in my personal life I already draw lines around circles of who I can do things for. Bet you do something like it too.

So here’s how I extended my personal groups into business groups. Now I know who gets how much for free.

  1. Some people are casual friends and acquaintances. When they come to town or when I go to theirs, I make an effort to meet with them. I’ll point these folks to where they can find the information they need.

  2. Some people are friends. When they come to town or I go to theirs I do my best to meet with them. I’ll help these folks when I can, especially when it’s something I can do easily.

  3. Some people are close friends. When they come to town or I go to theirs, I make time for them. These people will get my help and my time unless pressing projects must be a priority.

  4. Some people are lifelong friends and family. When they have a need I’ll fly to them anywhere on the planet. They’re most likely to get my help and my time for free. We value each other deeply.

Now that I see I already have a working system, it’s easy to decide who gets how much for free. When people I hardly know asks me to do their homework now, I simply say, “I can tell you where you’ll find what you need. If they push for me to help them, I say, “If you’d like me to do that for you, we’ll need a more formal arrangement to cover my time. I charge $XXX/hour for that sort of work.”

I can’t believe the difference it’s made. How silly of me that I didn’t make this connection before. I wouldn’t fly around the world for just anyone. So what made me think I should give everyone my work for free?

–Me “Liz” Strauss

Related
How Too Much Thinking Used to Screw Me Up
Self Promotion: Telling Stories for the Painfully Shy
Self-Promotion: How I Learned to Stop Shooting Myself in the Foot
Self Promotion: A Winning Answer Every Time — Why is That?
Shameless Self-Promotion: What Makes It Shameless?

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32 Comments to “A Personal Model for Business Life: Who Gets How Much for Free?”

  1. January 4th, 2008 at 7:55 am
    Karin H. said

    Hi Liz

    You know what’s going to be the funniest (and most rewarding) bit with this?
    It’ll grow and grow and grow, because everybody gets their ‘perceived’ value from you.

    And because of that and the ’system’ you put in place the amount of correct referrals (and expectations of those referred to you) will start to get momentum.

    Karin H. (Keep It Simple Sweetheart, specially in business)

  2. January 4th, 2008 at 8:06 am
    Lara said

    Liz, as always, when you speak from your heart, you speak to mine.

    I’ve got some goals for 2008 - big ones, attached to big plans. Re-evaluating how I’ve gone about things in the past and taking my whole life (personal and professional) to a totally new level.

    It’s time to step it up in Lara Land! ;)

  3. January 4th, 2008 at 8:21 am
    ME Liz Strauss said

    Hi Karin!
    Thanks for your faith in me.The momentum you talk would be a fabulous thing for all of us. Imagine us all growing at full speed.

  4. January 4th, 2008 at 8:28 am
    Mike said

    Liz,

    A masterpiece of thought art, as you always do! I’m very happy things are coming into focus for you.

    Mike

  5. January 4th, 2008 at 8:29 am
    Karin H. said

    Hi Liz

    As long as we all speed in the same direction! (I imagined bumping into growers in a different way ;-))

    Karin H.

  6. January 4th, 2008 at 8:30 am
    Mark Harrison said

    “1: I’ll point these folks to where they can find the information they need.”

    How about “I’ll point these folks to where I’VE CREATED a bunch of standard information with my branding all over it”?

    Suppose you have written something useful, say a photo selection of pre-Raphelite murals in the smaller churches of Southern France, the question is how you price THAT.

    Pre-Internet, chances are you’d give your talk about the Churches for a small fee to local art societies and the like, or just keep the 35mm slides for when the family came round at Christmas. Now we have a bunch of other options, from making them free (Flickr on whatever), or charging for them (Making them into a book somewhere like Lulu.)

    Now, the question is how do you make money as an expert?

    Do you make the photos available for free at low quality, but produce the book and give the talks anyway? Or do you try to charge for everything?

    The “free mentality” has underpinning it the idea that the MORE you can make available for free, then HIGHER your income will be giving the talks, because suddenly rather than getting £50 “expenses” from the local Art society, you run your own event (or get an extra hundred people to theirs), each paying £5 on the door… because those extra hundred people are more willing to pitch out to hear you talk if they’re impressed by the quality of your “free stuff”.

  7. January 4th, 2008 at 8:31 am
    ME Liz Strauss said

    Hi Mike!
    The focus is brilliant and beautiful. I’ve only been working on it for years. :)

  8. January 4th, 2008 at 8:31 am
    ME Liz Strauss said

    Hi Karin!
    I so love your imagination!

  9. January 4th, 2008 at 8:53 am
    Karin H. said

    Mark ;-)

    Are you a TS student by any chance? Becoming an expert or authority does start with giving out free material: building of trust.

    Not just for knowledge and sell your talks, but for knowledge and sell your wooden flooring (in our case)

    Funnel principle: catch them and ‘drive’ them down to the even more interesting/valuable stuff. Also filters out those ‘looking for just a freebie’ - time-wasters by lack of any other word.

    Karin H. (TS-student)

  10. January 4th, 2008 at 9:04 am
    ME Liz Strauss said

    Hi Mark!
    That’s, in some ways, a different subject. Choosing to give away something for free. Is not the same as being unable to ask to be paid a living wage for work done.

    I give plenty away on my blog and always will. However, the expectation has been that my time is also free . . . ironically that expectation comes most strongly from people who show early on that they’ve not read my blog, but are asking for huge blind favors.

    I’m a generous person. This is a post about learning where that generosity belongs.

    I do agree that offering free examples of your work, a free ebook perhaps, is a great way to give people a “taste” of your expertise. :)

    I bet your business is thriving. . . . .
    You’re not a stranger anymore. :)

  11. January 4th, 2008 at 9:09 am
    pelf said

    Aww, Liz, you made it sound so simple! :(

    I am only a student and trust me when I say that the line cannot be drawn sometimes. I help my Supervisor with a lot of her office (admin) work but I don’t get paid all the time.

    And, seriously, who am I to say, “Prof, if you’d like me to design that poster for you, I charge RM XXX per poster”??

    So I didn’t say it, and ended up spending 3 days of my time designing a poster from scratch and making adjustments to accommodate the changes she wanted.

    So I need your advice, Liz, where do I draw the line?

  12. January 4th, 2008 at 10:01 am
    Lisa Merritt said

    I’m in the non-profit arena in my non-blogging world (www.pegasuswriter.com), and so many organizations are so deserving of funding, buy you are right. You can’t give yourself or your business away for free all the time. As in all things, balance.

  13. January 4th, 2008 at 12:49 pm
    Mother Earth said

    man oh man are you living in my computer and in my head ??

    perfect timing, for this subject and speculation

    have missed you and these amazing what I need prompts of thoughty-ness

    have also allowed myself wonderful time off to indulge in time with my family

    more of that through monday and then I can get my full time work hat(s) on

    in the meantime thank you for being ahead and leading the way not only for me, but for so many

    Mother Earth aka Karen Hanrahan
    http://www.bestwellnessconsultant.com

  14. January 4th, 2008 at 1:08 pm
    LaurenMarie - Creative Curio said

    So simple, yet so brilliant is your solution, Liz! What a great way to think about it. And I really admire your tact. Instead of being indignant that people would think they can ask you to work for free, you kindly point them towards something that might suit their needs, without taking away your valuable time. You really have a huge heart!

    Another point I think of when reading the comments is: If you give away too much of yourself (free or otherwise) you have nothing left for you! I used to work for a non-profit and I saw so much giving of self that the people became bitter and angry about it :(

  15. January 4th, 2008 at 1:16 pm
    Mark Harrison said

    Karin,

    I’m a student in the sense of “life-long learning”, but it’s been many years since I last went to university.

    I’m a UK entrepreneur, and run a training company. Increasingly we’re giving away more and more of stuff that previously we’d have charged for - yet despite (because of?) this, business is booming :-)

    Mark

  16. January 4th, 2008 at 1:17 pm
    Barbara Rozgonyi said

    What a sound and decisive system!

    Being able to freely give is one of my major blogging motives. It’s so easy to either reference an article or write a new one!

    As a professional speaker, I reserve time for one free speech every month. And I choose one organization or cause to serve every year with free-flowing creative contributions.

    Budgeting time to give away is rewarding to the giver and the receiver.

  17. January 4th, 2008 at 3:06 pm
    ME Liz Strauss said

    Aww, Pelf,
    Don’t think that I think it’s simple. I sure know that it’s not. It took me over a year to get to where I’ve gotten. With a teacher that’s a tough one, it’s the same way with a boss . . . anyone who controls your income or your future in that way. Still, know that you are choosing to give for free.

    You may make that choice because the other options are less rewarding to your future than putting in the extra time now will be. You may choose to say something in hopes of finding a better “contract.”

    You know the person. If you want we can talk about this offline. :)

  18. January 4th, 2008 at 3:13 pm
    ME Liz Strauss said

    Hi Lisa Merritt!
    I’ve worked for a nonprofit. The giving spirit can take over grandly. It can also do damage. I’m with you. It’s about balance.

  19. January 4th, 2008 at 3:14 pm
    ME Liz Strauss said

    Hi MotherEaarth!
    I told you when we met that I live inside your computer. I’m glad to see you again! :)

  20. January 4th, 2008 at 3:16 pm
    ME Liz Strauss said

    Hey LaurenMarie!
    I know about getting stretched wire thin. I’ve seen people who feel into it, and I’ve let it happen to me too. It’s sure not pretty.

    We need to hold onto who we are and I’m finding this reinforce who I am. I feel more like now that I’ve discovered this way to look at things. :)

  21. January 4th, 2008 at 3:20 pm
    ME Liz Strauss said

    Hi Mark!
    TS is an online program for entrepreneurs who want to grow their business. You reflect some of the same thinking. Sounds like your business is more than fabulous. When I was in direct mail publishing, we build a whole part of the business on well chosen samples. The free gift is a powerful incentive — you must know your customer well. :)

  22. January 4th, 2008 at 3:21 pm
    ME Liz Strauss said

    Hi Barbara!
    You’re such a great giver. I hold you up as an example of one who’s already figured out how to balance this issue. Thank you for describing how you do it. :)

  23. January 4th, 2008 at 3:52 pm
    LaurenMarie - Creative Curio said

    What is this “TS” online training for entrepreneurs? I tried to find it via Google, but it didn’t come up with anything. Is there a website? It sounds interesting!

  24. January 4th, 2008 at 4:19 pm
    ME Liz Strauss said

    Hi lauren,
    TS is an endearment for “Teaching Sells.” The program developed by Brian Clark and Tony D. Clark.

    Here’s some information on it.

    Teaching Sells

  25. January 5th, 2008 at 3:12 am
    Karin H. said

    Hi Mark

    Greetings from another UK entrepreneur! (Wooden flooring mainly - but with a friend of mine also involved in blog-workshops)

    And as an eternal student myself I’m very impressed with what Teaching Sells has to offer on sound ideas regarding free versus perceived value. Hence IMHO your success.

    LaurenMarie - TS is very interesting indeed!

    Karin H.

  26. January 5th, 2008 at 5:35 am
    ME Liz Strauss said

    Karin, I agree.

  27. January 5th, 2008 at 2:46 pm
    LaurenMarie - Creative Curio said

    Oh yes, of course! I’ve heard of TS, I’ve just never seen in abbreviated like that. Thank you!

  28. January 5th, 2008 at 5:05 pm
    isabella mori said

    oh, liz, it’s been so great to see you walk through this whole thought process online. beautiful! thank you for sharing so freely of yourself, in so many ways.

  29. January 6th, 2008 at 5:31 am
    ME Liz Strauss said

    Hi Isabella,
    They say a writer’s job is to show, not tell. I hadn’t planned to go this wrote when the challnege was put there. But I’m certainly glad that I did. :)

    Thank you for your encouragement and wisdom. It’s something special having you there.

  30. January 7th, 2008 at 9:33 am
    4 Sure Signs It’s Time to Change Your Mind and How to Do It Completely and Powerfully - Liz Strauss at Successful Blog - Thinking, writing, business ideas . . . You are only a stranger once. said

    […] the old thinking. I found a successful model in my personal life for deciding who gets how much for free. I slid that in the place of the old […]

  31. January 7th, 2008 at 9:53 am
    Free Without Exploitation @ chrisg.com said

    […] you as a free source of information that they get odd about having tp pay. Thankfully my friend Liz Strauss has rescued me from this with a simple model to follow (check out the full article): Now that I […]

  32. January 7th, 2008 at 10:10 am
    Dr.Mani said

    Though similar, my ’system’ has a few distinctions.

    The ‘casual friends/acquaintances’ get my ‘automated’ system-delivered content - for free.

    The ’serious friends’ get my paid-for products, which comes with some hand-holding and access to private/protected resources.

    The ‘best friends’ get my TIME.

    The valuable ‘commodity’ I ration out is the same one you do… time, and personal access.

    Nice post, thanks for sharing :)

    All success
    Dr.Mani

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