Entrepeneur Magazine 10/2009

“Free” devalues brand equity and permanently damages perception.

Chris Anderson’s “Free” has made Malcolm Galdwell balk and the creative geniuses of 37 Signals publicly state that the model of “FREE” is the greatest shame of the digital age. Apparently, publicists and public relations agencies are embracing the model by discounting service rates and adding in uncompensated hours to retain or win new client accounts.

“When you give away your expertise (other than pro-bono work), you devalue it in your customer’s eyes. Despite the economic uncertainty many of us are facing, you cannot lose sight of the value you offer a client. Once you do, it’s an uphill climb to prove your worth when times rebound.” - Ann Subervi

In my opinion, the model of giving it away for “free” isn’t a long term business strategy. As marketers and public relations professionals, our knowledge and expertise are what we have to offer to our clients. By being competitive with our services, providing unparalleled service and devising creative, innovative strategies for our clients; our businesses can outlast free.

Any one in the retail industry can learn from this as well. If we start competing on price, constantly discounting products, we devalue our brands. By the time the economy recovers, the damage will be done and moving price points back to previous levels will be huge challenge, as will restoring brand perception.

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