Jan 24, 2010

5 reasons why only free information makes your profit

This is not a secret: due to my work as well as a part of free-time spending I read lots of sites and / or blogs devoted to social media trainings, online education and earning money in new media. There are tons of articles and blogs, declaring that only payed information and only payed seminars, barcamps, trainings are worth organizing and participating in because of the reason that "pre-paid info is of the high professional origin, represented by experts, is a source of real-working opportunities etc. etc. bla bla bla". But watching, reading or observing all the events of such a kind, I must admit that 90% of it is simple try to "make money of nothing". In both Ukraine & Russia this is a rather popular thing: making payed events for making profit as a coach, trainer or whoever else, guru, teacher - it doesn't matter; only bills payed for the participating are the thing which matters. Yet there are 5 main reasons why only free informational spread & communication can make a profit (not a quick money). Lets look.

Free information gathers more people
Blogs, sites, newspapers, barcamps, blogger-meetings, online magazines - whatever - they attract more eyes, ears and minds while they are opened for as many people as possible. If you make a niche project, a niche magazine, a professionally-aimed source - then there is an ability to make a payed content option. But if you declare yourself "a communicator and creator for society", still continuing making money for the bloggers, Tweeple, separate individual contributors or just amateurs - you can gather lot of people only once. Next time this will be twice as smaller audience, then it will go down, until they will be a few "fans" in the end. More people means more ads, more contacts, more co-projects and... more money from the background projects (not from continuous re-selling the same book "How you can be blablabla"; MLM is a different sort of business, which can't work for B2B aims, for example; besides, MLM is not a business at all if talking about traditional model - it's kind of parasitism on contributors who have less while you stay on top of the pyramid with better profit).

Free information makes communication wider, giving feedback for a long time
Not all you clients, possible partners or contributors - possible future members of your team - have money for attending a payed seminar. Practice of free webinars, free fests, barcamps, meetings, podcasts or Skype-sessions makes communication wider, involving those who's got no money (or not only money), but got ideas. Wider communication with wider ideas' circulation can provide you more money than several payed classes for a limited community including 10-20 persons with money in the pocket.

Free information attracts those who've got ideas, not issues
People are always ready to pay for the solving of their problems. If you want new ideas and new opinions about your work, about possible improvements and re-organizing, you must follow the crowd with ideas, not only with troubles and cases to solve. Those who have ideas can be practicists and investigators with head full of ideas and practical tools & howtos with pockets empty; those who have money can be source of unsolved issues with no idea at all what to do, because their own business is collapsed.

Free information means wider outlook and different solutions which can be adopted
In free discussion during barcamps or events like this a creative co-working and workshops' building are possible; while payed info is aimed at the niche goal - to tell / show exclusive info with a point of view of "teacher" to the "students". In fact, the opinion of the participant during the pre-paid seminar is not so valuable, because "those who teach" knows "better" what to do and what not to do.

Free information gives community a signal you are ready to co-operate
And last - if you want to be a partner for the clients, for the members of your community, for the key contacts & colleagues, you should be ready for an opened co-operation with no money as a prize, but a co-project or the same idea as a goal & prize combined in one. Those who are opened can attract those who want niche solutions. Money isn't a goal, but communications and informational support of your business abilities are.

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