Know-How Exchange : Strategy

By focusing on the extra value you can offer the clients beyond the product itself. For example, Linux is a free operating system for computers, but RedHat.com sells support/training for it.

If your company has made the decisiion to no longer offer the product for free, and it has value worth paying for, they will buy. So you aren't selling freebies, take the word out of your vocabulary. Its not free anymore and isn't an option.

There are many examples of free or almost free items and changes in strategy. Once, copiers were practically given away to sell the toner. Cameras were almost free to get the sale of film. Razers were given away to sell the blades. Our free version of Adobe allows us to read those PDF files those buying the pro version have created.

Look at all the free calendars we get in the mail end of year from suppliers. Yet, we still go out and buy one that appeals to something we identify with month to month. The free promo tshirts have the same purpose (clothing that covers our body) as the ones we plunk $25+ for. I get marketing keychains free -- yet my keys are on a $65 one from Tiffany's. Why don't we go for the freebies? Those are the kind of questions you have to ask so you can find why your customers will pay for something that can be had "free"

Does the solution you're selling deliver an important benefit for your target audience? If so, why was it free (before)? I don't understand why someone would give something away free if it has value for the target audience (unless it was bundled with something that had enough value to generate total revenue and profit to cover everything)?

Clearly you need to sell the value. If you can establish true and legitimate value, then your target audience will pay. If they don't have value for it, even free may be too much to pay.

By offering HUGE amounts of long term value—value that people are willing ... nay, eager ... to tell other people about.

Is the solution an annual renewable solution? If so, give your existing clients personal notification that the service will now have an annual fee, and extend them for some time period (3 months, 6 months) for the past support prior to invoicing them the annual fee. In your marketing, focus on the value and benefits of your solution to your different end user segments. Be specific. If there are any new features -- emphasize the benefits and value of them.