I recently attended a gathering where a fellow consultant mentioned a free webinar. She verbalized what many of us think: “Love a free webinar. Free is always good.”
Last week I delivered a free webinar with 98 registrants. Only 45 attendees attended the webinar, a roughly 50% participation rate. Sure, some might watch the recording later. If my own inbox of unwatched webinars is any indication, I shouldn’t hold my breath.
This led me to question: Is free always good? Maybe. Sometimes. There are definitely some pros to free, and there are ways to frame free to offset the cons.
Pros: Free is good.
1. Access: Free offerings remove financial barriers, making content accessible to a wider audience. The only requirements are time and an internet connection.
2. Reduced Administrative Work: With no financial transactions involved, the administrative burden is lighter, making the process smoother for organizers and participants alike.
Cons: Free is not always good.
1. Lack of Commitment: We feel the pain of losing something more than the joy of gaining something (loss aversion). When people pay even a small amount, they are more likely to attend because they don’t want to experience the pain of losing that money.
2. Perceived Value: In our capitalistic system, value is measured by price. Free is often perceived as having little to no value. A client who advises philanthropic clients on science investments, for example, struggles to be seen as an authority on her science knowledge because her advice is underwritten and therefore free. There are so many free educational offerings available that it is hard to determine which of them have value.
Solutions
When access matters more than recovering full costs—or a program is underwritten—there are some solutions to increase how participants value the offering:
1. Charge a Nominal Fee: In one program I’m running, we plan to charge $10 for a four-hour training session that includes lunch. Costs are covered by a contract, but this small fee can create a sense of commitment without being a financial burden.
2. Provide Equal or Greater Value: We’ve also talked about charging slightly more, say $20 for a day-long training session, and ensuring participants receive at least $20 in tangible value, such as learning tools and swag. This reinforces the idea that the fee is an investment worth making.
3. Tiered Pricing System: Another idea: implement a multi-tiered pricing model with the top price reflecting market value. Clearly communicate the market value and the subsidized cost available to participants because of underwriting. The subsidized cost could be as low as $0 if adequately explained.
4. Strategic Free Offerings: Sometimes free is the best way to go. In this case, offer free sessions occasionally to reach a broader audience, but be prepared for high no-show rates and lower perceived value. This can be an effective strategy if used sparingly and with clear communication about the value being provided.
Having said all that, I’ll gladly take a free ice cream any day.