In these days of economic down turn and credit crunch it can be very tempting to padlock the wallet and just feast on all the freebies around. There is, however, a big cost associated with this behaviour. Not a direct cost that can be easily measured. Its an opportunity cost and even though it may be hidden it is still real none the less.
There is no shortage of free information on sales and marketing about. TheAccidentalSalesman.com if full of it. I am proud of the quality of information and its all free – no strings attached. Yet the thing that really counts is not the knowledge itself but how the knowledge is applied. Knowing about sales and marketing is one thing. Its only when it is applied that it really makes a difference. If you are good at putting knowledge into practice then you are laughing. Lots of people, however, do not take action. If they paid for it then perhaps they would take it more seriously. What difference would it make to the bottom line if action was taken?
Another opportunity cost is especially important if you are in the business of providing consulting or coaching. It seems that the more one is prepared to invest in others’ skills and input, the more people are prepared to invest in your skills and input.
I am not suggesting that one throws caution to the wind and goes on a spending spree. Times are hard and all that. I am suggesting that we should remember that investing in ourselves is probably the best investment we can make. Make sure you get a clear return on investment but remember that it is an investment, not a cost!
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on Jan 19th, 2010 at 11:47 am
Your subject title caught my attention.
We [ahem] “sell” Free Software, and we have to constantly explain that Free is never really Free in the sense that there will always be a cost. It might not be overtly financial, but there is always time, implementing and or learning-curves to be considered. So I completely agree.
Our customers pay for us to make Free Software work for them in the most efficient way possible. Sure, most could download it themselves, but then may spend hours/days/weeks learning to install and deploy it? That’s not free!
We articulate (politely) to our customers that they need to concentrate on “what they do” as a business and let us concentrate on what we do. Time spent by them trying to do “our job” is almost always much longer and mostly a waste. They could be selling their own products/services which is a far better use of their time.
Cheers
Alan
on Jan 19th, 2010 at 12:41 pm
Richard,
I entirely agree with your comments. There is a different level of commitment and application when you pay for something, it is a concious act to invest in yourself and your business and so you actively seek a return. That means you are focused on getting a positive outcome – and you’ve actually thought what that outcome needs to be, and whether the product or service is the right one to deliver it.
It’s too easy to go for something because it’s free without really thinking about what you really want out of it, and whether it can deliver it. Your whole attitude is wrong and it’s not surprising that you don’t get a satisfactory outcome in many cases. It’s like trying to move a wardrobe using a bike, because you can borrow it free from a friend. It is transport but…
If it’s important enough for you to take action, then it’s important enough to do it properly and make a real investment, in time and money, in it.
Regards,
Colin
on May 21st, 2010 at 11:47 am
This is an important point, and a great post. Lots of people (I’ve been one of them!) will collect oodles of free information and never even look at it.
This stuff will not miraculously transfer itself to the knowledge centre of your brain unless you read, absorb, and action: “to know and not to do, is not really to know”.
However, paying for something doesn’t guarrantee that you will use it either. The un-used gym membership is a perfect example!
@tamtam10000