The Cost of Free
After checking into our hotel in Nashville for the NYWC (National Youth Workers Convention), I hopped in the elevator to cruise up to my room. The elevator hit floor #2, and as the doors opened I was engulfed in a sea of youth pastors. Apparently they were heading from floor 2 to floor 4 (which I thought was rather odd), and my floor was 5… Which gave me about 9 seconds to have a meaningful conversation with them.
One of the youth guys asked me if I was there for the YS conference… I told him I was, and that I was one of the exhibitors down in the exhibit hall. He asked who I was with, and I (proudly) mentioned Clover.
His next comment is what got to me a little bit. He asked, “What are you guys giving away?”
Although caught off guard by his annoying comment, I answered back, “We’re handing out inspiration.”
I was pretty pleased with my answer, but I was still a little frustrated with the interaction. Maybe it’s the nature of these conferences that have the tendency to make me question if it’s the best way to spread the word about Clover.
There’s something that happens at these places that’s kind of reminiscent of a carnival… at least the portion of the carnival that your walk through super fast so that the carnies don’t make you feel ridiculous for not playing their “toss a nickel on a plate and win an over-sized doll” game that you will never actually win.
If you replace the “over-sized doll” with “free stuff exhibitors give away”, you have a typical exhibition. Unfortunately, a lot of times the product is the same as it is at the carnival- pretty much good for nothing.
In preparing for attending our first round of conferences a few months ago, we had a bunch of conversations about whether or not we were going to give away anything in order to get people to our booth. Conferences really made us think through our marketing approach. After hours of conversations, here’s what we determined:
“Free” always costs something. Always. Whether it’s handing out a crappy pen at a conference, or a 10% discount for every person named “Jerry”. The cost for the company is not necessarily the amount of money they lose giving the discount or buying the product they are giving away- what they really lose is the respect of their product.
Right out of high school, I went on a missions trip for 3 months on the Logos 2, a ship that sailed around distributing Christian books, Bibles, and educational curriculum to 3rd world countries (among other things). What was really interesting was that even though we could have easily given these books and Bibles away to the very poor men and women touring the book exhibition, there was a distinct choice that was made to have everyone pay something for the pieces of literature they wanted.
I remember asking one time why they made people pay money – that they had very little of – for Bibles. The answer was very simple: “People value what they pay for.”
At Clover, we have created a product that is easily worth $20,000. We understand that most ministries cannot afford a $20K website, so we chose to offer a product at a price point any ministry can afford.
Part of the reason why we offer websites for $1000 rather than $999 is this idea of this concept of respect. We might be able to sell more with a price point of $999, but we firmly believe that people will respect the product much more if they have committed thousands of dollars rather than hundreds.
Maybe sometimes it’s worth selling your information for a chance of a free T-shirt or an iPod Shuffle. We can’t determine that for you. But for us, we probably won’t sucker you in with a month of free hosting or a chance for a month of back-rubs from Ben. We believe that if you have looked for 5 minutes on the web for any sort of solution for your ministry’s web problem, Clover will emerge as the best, strongest, and most price-effective solution for you.
For those that need the free T-shirt or pen to entice you to purchase our product, I’m not sure that Clover is the right fit for you. We just make great websites. Nothing more, nothing less.
Thanks for reading all the way through this post… I think it’s the longest to date. In the midst of the craziness at all these conferences, I thought it would be good to nail down some thoughts. All of us at Clover really believe that our product is revolutionary. We are not trying to just add another voice to the web market, we are trying to re-shape the industry. Your website should be beautiful, easy, and affordable. It’s time for the web to change– starting with the church.
Posted on December 2nd, 2008 under Our Opinions by Jim with 7 comments.
7 Comments
I’ve been in the NYWC exhibit hall the last two years as a vendor. Let me share what you seem to already know… having a freebie or not having a freebie makes zero difference. Even though we gave away something this year, it was more a branding thing than anything else. We actually generated more leads when we didn’t give something away! But then again… that could have been because we were brand new as well.
Yeah- I feel you.
I wonder what made it normal to hand out freebies at trade shows? I do get the branding concept, but unfortunately unless it’s something of value and worth holding on to, it’s going to do nothing for your brand. It will end up just wasting your company’s money as well as adding to the local landfill. That’s cool that you got more leads without handing stuff out.
What company are you with?
You’re right on with this. I think swag is mostly pointless and a waste of resources. Though, some of it is pretty slick.
But out of all the swag I’ve received, I can’t ever recall thinking that I’m going to purchase something from Company Whatever because I got an awesome pen/coaster/pontoon boat.
Instead, why not spend that money so that it benefits your clients more?
Really great post… that being said, can I get a hat?
Or at least some of that inspiration you mentioned?
As a visitor of your booth at LEAD, I think it was one of the coolest booths ever because of the interaction that you guys offered. Anyone could get on one of your two giant iMacs and interact with your interface as if they were building their own site.
So, what you guys may not offer in free stuff (which is cheesy, as you made clear in your post), you do hand out inspiration with your highly interactive booth.
Keep up the good work guys,
Mike
Maybe we should start advertising the whole inspiration thing!
Mike, if you dug the 2 iMacs at Lead, you should check out our 4 iMac setup when we have the room. I’m fairly certain the glow can be seen from space.
Thanks for the encouragement…
Great post. Great facts. These are the kinds of feelings that are hidden deep with in exhibitors and the “vultures” that lurk around looking for something to devour (I’m one).
I was at a conference in October and saw you guys for the second time. Loved the look and web design, but never acted on it outside of the conference. Months later, I get an email from a friend who wasn’t at the conference but ran across the Clover site. He shared it with me and I quickly ran over to the site and check out the demos. I’m sold on it and now getting ready to launch a request that we switch direction with our church website. Thanks!