Free goes viral and brings in money...

A free version can make it far easier for others to spread your product. That doesn’t mean everything should be free. But if people can share something good without also asking their friends to get out a credit card, you have a chance to reach many more people and sell them something more afterwards.

Here in September 2010, I’ve received an email that shows the problem very clearly. A production company has made a series of interviews with various personalities, and I’m one of them.

A good interview with an unhelpful barrier

They contacted me and asked whether I’d take part in an interview to be put online. As far as I remember, Politiken was involved as a partner or something like that. When I was later in Denmark, we sat down and recorded it.

It actually turned out really well. The interview lasts around an hour and a half, and the people who’ve seen it have praised it a lot. I think around 30 different personalities are involved in the project, talking about their childhoods, their motivation and all sorts of other things.

I didn’t realise it would cost money to watch. If I’d known, I’m not sure I’d have agreed. But let’s leave that. It isn’t the main point.

Now we’ve all received an email saying the product is finished and ready to launch. Thanks for taking part, it turned out really well, there’s a launch party and the whole lot. Then comes the request: Please spread it through your network.

That’s where it falls apart for me.

Do I want to ask my friends to pay to watch me?

It costs 69 kroner to watch one profile. So 69 kroner for an hour-and-a-half interview with me.

We can debate whether that’s a lot or a little. It isn’t much compared with a cinema film, but there’s not much cinematic about me either. Perhaps you get some good tips and other things out of it. Whether it’s worth the money is for people to judge.

The primary problem isn’t the price. It’s whether I want to send it to my network.

It’s self-promotional to write: Hey, come and watch an hour and a half of me. I could perhaps live with that. I’m a little narcissistic, and my friends know it. Other participants might already draw the line there.

But writing: Come and watch me, and pay 69 kroner for it? No fucking way. That isn’t going to happen.

I think it would be excruciatingly embarrassing to send it to friends and acquaintances and expect them to pay to watch me. So even though the quality is good, the producer won’t get the distribution from me they’re hoping for.

A free version could have got people sharing

For example, they could have split the interview in two. First, an hour of the more personal stories, available for free. Then half an hour with my business perspectives and advice, which cost money.

I’d happily distribute the free hour. I could send it to my target audience, put it on Amino and boast a little about it. People could watch without paying to find out whether they were even interested.

When the free part ended, it could say: If you want another half-hour with Martin at the same quality, sharing his business tips, it costs 69 kroner.

You could also promise people they’d become happy, rich and slim. They probably won’t, but that’s the sort of sales talk I’m poking fun at. The point is to offer something extra people actually want to buy.

I think conversion from the free part to the paid part could have been really good. The audience would already have experienced the quality. And I’d have helped bring them in to watch the first part.

That’s the thinking we use in E-pusher and SPAMfighter

That’s also why E-pusher is growing so strongly in Denmark: There’s a light version. That’s how I’ve worked with E-pusher, and we use the same thinking in SPAMfighter.

I think it’s called a freemium model, but I’m not sure whether that term fits this example precisely. In any case, the interesting thing is the combination of something free and something paid.

When you make a product, ask yourself: Can I make a free version people will want to refer others to?

People can actively dislike recommending something where the recipient immediately has to pay. Especially when it’s a type of product they already consider free.

Expectations about the product make a difference

If I recommend Falsled Kro, people know it costs money. I throw out some large amounts for dinner and an overnight stay, but it isn’t a price list. It’s simply an example of something we all expect to pay for.

Online video, internet services and many other products are different. Here, people often consider the product category free. And at this point, more and more products are entering that category.

You can charge for a product even if free alternatives exist. If the quality is there and you’re good at marketing it, that’s absolutely fine. But at least consider having something free people can refer others to. Otherwise, you risk missing out on the entire viral effect.

I’m afraid the interview project will fail if they don’t adjust the model a little. That’s my assessment before launch, not something I know about the result. The quality is excellent, so I really hope it succeeds.

See you at the entrepreneur fair

I’m heading to Denmark and have no time for more meetings. That’s certain, so don’t email me about it. But we can meet on the 10th and 11th at Forum, where there’s an entrepreneur fair.

If you want free admission, there’s information under one of my video episodes from four or five episodes earlier. I think it still works at this point. Look for it yourself, because I simply don’t have time to answer more emails about it.

If you have a product you want to get out into the world, think carefully about giving a little away… Best wishes, Martin