One of my friends was working with an organization, where he created software, that seemed to be of real use for the clients. It was so useful that the organization was getting really good profits over several months.

As time passed by, my friend asked for a raise, which was refused by the organization, stating several reasons. They even asked him to search for better opportunities as he was determined to get his fair share of the revenue generation. But obviously, as an employee, you have nothing in hand and the employer can actually give you whatever they feel like. This changed his way of thinking.

So, one fine day, he decided to tell his boss that he wants to leave as he is getting a good opportunity with some IT firm. Boss tried to persuade him by saying that he will get a raise in some months but didn't actually want to pay any raise as his face showed it. 

As he left the organization, he handed over every useful information to the concerned persons. Some months down the line, he got a job with some organization, and one fine day, he received a call from his boss, "Hey Scott, can you please renew the plan of the software that you had created! We are not able to figure out how to do it, and I was a bit busy with some project, so can you do it?"

When you are Scott and you hear that your old friends or old organization needs help, you immediately say, "Sure, no issues, I will do the payment and share the invoice".

Scott feels, he is creating his goodwill and that he is helping an organization when he doesn't realize that he is just a means to get work done and because of his goodwill mentality, he is again into this vicious circle. So, he completes the payment and sends the invoice. 

After a month, when again there was a need for payment of the software, Scott's manager calls him and tells him, "how had you told to do that payment? Can you please help me with that?"

This time Scott is not able to ask for old money and again says, "No issues boss, I will do it right away". He does it again and the payment is done. The organization is happy and Scott thinks, he has done a great job by helping his old boss and organization, while his old boss thinks, he has again got work done and on time. He is least bothered about Scott's payment, as Scott himself never cries over those monetary matters, as he thinks life is more than crying on a bunch of money. "I have earned goodwill".

Moral of the story:
Don't let others take advantage of your passion for a thing - you will sell yourself short.

If you are good at something that people want to be done, and willing to do it for free, then you are going to do it for free.

This may not be bad in terms of you getting to do the thing you love, but is selling yourself short - and you never know how much that opportunity cost was until you reach some opportunity you can't afford.

The herd mentality of freebies
Let's see what is happening on social media, and especially LinkedIn or Facebook.

It seems that every second person is now offering free stuff: webinars, courses, one-hour consulting sessions, or pay-later offerings. Social washing by offering services for free to be seen as kind and compassionate has become the new marketing tool for many SMEs and consultants. Most are blanket offerings to everyone and anyone. No qualifier, just spill and promote.

And here is the rub: generosity and commercial discernment are not mutually exclusive. 

Businesses who are dropping their commercial pants and suddenly going all philanthropic in golden-halo style are the ones often least able to afford it and shouldn't. Unless you are a charity, a benefactor, or a volunteer, then don't. You are a business owner first. The belief that 'free now' will create 'paid later' is not always the case.

Don't get me wrong, I am a great supporter of being compassionate and caring, but it is not what is at play here. Fear is driving many decisions without critical market analysis of the who, what, when, and why of freebies.

Not everyone is in the same boat and people will and do take advantage of others. Human nature doesn't do a 360 in a crisis, instead, true characters and intentions are amplified, negatively or positively. Boundaries and qualifications are more important now than ever.

Unless you already are in the field of social enterprise or charities, why the change of lane?

Further, free services are aligned with a lack of quality. Value is not based on actuality but perception and then the experience.

Do your research first
There is evidence that the use of free services and webinars is often low, and can indeed be counter-productive, let alone translate to paid clients.

Big tech brands are offering free tools and services to help businesses mitigate and navigate several economic issues that everyone is facing these days, which is great. But these companies have enough skin already in their customer game and financial cycle to do so and their brands are solid.

A better way to promote your products and services
Here are a few tips, about how you can actually promote your products and services without giving out everything for free;

1. Give extra bonus products or services to every full-priced service.
2. Only discount your service if someone desperately needs it but cannot afford the full price. 
3. Offer a buy-one-get-one-free deal for a colleague or friend. 
4. Donate money directly to crowdfunding campaigns, charities, health lines, and social enterprises, or spare some for your monthly expenses.

It is important to understand, giving away your skills for free actually makes you more vulnerable with regards to people coming to you for help. They will eat up your time and even money. So, it's better to set a price for your product and service and then provide value even greater than the investment of your client.