Craig,

I agree with you. Whether or not you offer something for free or not does reflect on your image. There are indeed a lot of factors that enter in here.

My business mixer can away with offering "free" door prizes that area actually quite nice. Why? Because someone has already paid for the item and is willing to give it away for free due to the exposure to the physically assembled crowd. But, when you give something nice away for free online, there is I believe a different perspective involved. It is more one-to-one than one-to-a-crowd. There is just not the same sense to promotion or exposure. However, you might very well be exposing your product to more people online that you would in a physically assembled crowd.

Keep in mind that free or cheap often has a negative connotation. I used to work for Bear Stearns - one of the most high-profile investment banking firms in the world. We actually had an in-house saying that went like this, "You can find cheaper, but you cannot pay more." When I first heard that slogan I thought it was terrible. Who would appreciate such a jingle? Answer: people who willingly pay a high price for what they perceive is the best investment advice on Wall Street. I soon discovered that rich people actually like that slogan. Why? Because thety relish doing business with what they perceive is "the best of the best." And no, they do not mind paying a premium price for that kind of investment advice.

Therefore, while I do believe that free offers have their place in the marketing mix of some businesses, I also realize that establishing one's position as exclusive and costly has its benefits as well.

Lamar Morgan
CDMM
Power Networking
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