I get an email out of the blue from someone I hadn’t had contact with in the last several years (other than asking to be removed from the blog as it didn’t interest him anymore), looking for some information on what to do with his property as he is getting transferred out of the province. He is inquiring about whether doing a rent to own is worth it or whether he should sell it, or whether I wish to purchase it as an investment property.
But I have a couple of problems, last time I helped him out with some Real Estate information, roughly three years ago, I recall him taking my info using it and then the feeling I get was of being tossed aside once he had the info. The second problem is prior to that he had become very interested in potentially investing with us in some property. After providing him with plenty of info on our projects then, spending time explaining how it worked etcetera, he bailed on that as well.
So after putting in several hours I’m left feeling a tad unappreciated, as if I have wasted my time and I’m generally not happy with the guy. So, even as we start emailing I am coming into this with a bit of a tainted mindset! So the question is, am I going into this with clouded judgment from the get go?
Hey, I love helping people out and I have been informed by several of my entrepreneurial friends that I may be giving to much information away that I have spent years learning. My last reply to the fellow was rather short, some quick answers on whether the property would work as a rental and an offer to help set up the rent to own paperwork in a way that protects him and creates the best possible setup of the deal for him. I also explained I have spent thousands of dollars in training and many hours of real life experience learning this, so I would need to be compensated if that was the route he wished to pursue.
Part of his reply; I was looking for some friendly advice and support not a service. He has decided he will do his own research on the rent to own. This brings about my question, was I being fair, or was I being a jerk?
At what point does the free information I provide cross the border and move into a chargeable service territory? Did my previous experiences with this individual push me to the dark side in an effort just to get rid of him, or was I entirely valid charging someone looking for specific information that I just happen to have considerable experience with? What would any of you done?
Hey Bill,
I have been having the same struggle, determining what information I can give up for free and what information/sources/secrets I should hold back until given proper consideration.
The information is out there and free to share (if you can find it) but for someone to separate the good information from the bad and package and present it in a way that gives the quick answers and through personal experiences helps save somebody else the time, cost and hassle of making mistakes is a consulting service and you should be charging for it.
It is difficult to determine how to put a price on what the information might be worth to somebody so perhaps determining an hourly charge (like lawyers and accountants charge for their services) would be appropriate.
People cannot truly appreciate or understand the sacrifices you have made to date: the TIME (evenings, weekends, lunches and suppers), daily, monthly and annual EXPENSEs for education/consulting/expertise and the PERSONAL EXPERIENCE you have so separate the “Suspects” from the “Prospects” and retain a service charge refundable upon entering in to a deal together so you are no longer wasting your time and putting yourself in the position of feeling used, which is what these people are truly doing to you.
People take FREE for granted and because it doesn’t cost them anything, they believe it’s worthless. Put a value on it and make people pay for it and they will much more likely take and use the information appropriately.
Personally, I can’t stand when people use the information I provide, intentially teasing they plan on doing business with me to get the information, then go behind my back and do the deal on their own (without having me do the financing at least I might add) … but my lesson has been learned: don’t give everything away until you have the expectation and consideration set up front.
Fortunately for me, I know these people know what they are doing and that they are users (not sure how some can feel good about themselves with it) but that Karma doesn’t forget and they will some day have similar challenges dealing with somebody else, that’s how it works.
My belief is when somebody helps you or gives you something and you have gained, don’t bite the hand that feeds you and if you can’t make it up to that person personally, remember to always Pay It Forward!
Trevor Adams
Send this guy and others like him to his Real Estate Lawyer, see if he gets info and advice for free??? We, as Real Estate agents, first and foremost are service providers ( at least my group is) have investors seeking information every day, but when we ask them to sign Buyer’s Brokerage contract, so that we get paid by either investor or the seller, the standard answer is ” I though this information is free”!!! When was the last time anyobe got anything for free?? Please le t me know, I want in on it??
Bill, you were to nice with this guy and you know hwat happens to nice guys?? Your Friend, Stef
Hey Trevor,
It really is Karma, and I guess my big problem is with people who expect free information. There are numerous folks I help because they need help, does it put money in my pocket, no, does it make me feel good, yes. These folks are not trying to get free information, I’m just a trusted/experienced source of help.
I just spent fifteen minutes this morning already putting together information to help someone else with an eviction, but they appreciate it and it shows. They didn’t expect me to help they asked if I had any advice. The other fellow I refer to in the post, comes across as just expecting me to help, yet I feel he has used me twice already, maybe I am just a slow learner!
Thanks for the great comments as always,
Great point, as Trevor says in the earlier comment, everyone takes free for granted, but free advice is typically worth what it cost you. That’s why so many people looking continually for free advice never get anywhere.
As for being a nice guy, this last year has taken a huge bite out of my nice guy status it feels like at times, sow I am only semi-nice!
Hi Bill,
You are a nice guy and you are successful. If there is such thing as Karma then it definately should be helping you. I think you have to go with your gut feeling. If you want to help someone and it makes you feel good then do it. If someone seems to be using you and expecting help ungratefully from you then hold back.
I personally like helping people and the appreciation is the reward. If the appreciation isn’t there then the helping will stop.
Thanks for the feedback Tyrone, you are a perfect example of someone I have been able to help and who is appreciative of it!!
I totally agree with Tyrone. I think you already know where the line is Bill and you shouldn’t question yourself when you have to draw it. sometimes it stings when people react the way they do. Being in a sales position myself I know sometimes it can feel like you did something wrong but really it’s just unappreciation from the other person. The advice and time you spend putting together these newsletters, I think, is more than what most people should expect. Anything beyond that is your choice to where you feel its time to draw the line. Anybody that doesn’t understand that kind of tells you enough already.
Bill,
Selling a service is 10x more difficult than selling a tangible product, and selling knowledge is even less tangible and 10x more difficult than selling a service. Especially in this age of easy access to free information everywhere.
Carnegie’s famous story about the consultant getting accused of over charging for invoicing the client $1000 for visiting a manufacturing facility and drawing an X on a pipe where the problem was, is a great example I use often to sell consulting services. His reply was that he only charged $1 to draw the X, but he also charged $999 for the 20 years it took him to learn exactly where to draw that X.
My experience in consulting is that your free information, if it is very good, better than most of the free information out there, is your “fishnet” that builds your reputation and your brand. The more valuable your “fishnet” is the more people will use it and refer their friends to it. This will in turn funnel more qualified paying customers your way. Even if some people will undoubtedly be there only for the free stuff, you’ve at least got a chance with them, and their friends, compared to no opportunity at all if they are looking elsewhere for their free information.
You’ve got to look at these freeloaders as a cost of doing business, the cost of building a very large and viral fishnet that will pull in more paying customers too.
My strategy is to make my free information better quality and more user friendly than anywhere else they can go, and get thousands of people using it and referring people to it. If only 1% need something more and are willing to pay, I would rather have 1% of 150,000 than 1% of 15,000.
There’s many other benefits to having lots of users of your free stuff. If you’ve successfully developed a large fishnet, it can be leveraged many different ways to generate income, aside from just your consulting business.
That’s my advice.
Chris
PS – by the way Bill, I think you are already doing a very good job on your free fishnet, and I have referred a number of people to your site and your newsletter. Good on ya!
Hello Bill
I THINK YOu’ll LOVE THis…Not what you’re Probably EXPECTING
If the person is not a close friend and you do not have a sharing relationship….then with this person the info distribution is ready for an
upgrade to a professional/client relationship. Its now not a chat its a complicated
consulting question.
Good for you, attracting people who are Allowing U to look at what is
free info and what is Valued time Tested Work info….that you’d like to be acknowledged for and paid for.
Hey Guy…that’s a great question and if it was a simple yes or NO I’d give you the Pat Answer…however…the answer 2 that question opens up to a multitude or questions specific to your needs and goals… and for that I need to spend at least _______to look at the overall picture to properly present scenarios for the answer to your Question. Basically the answers to your question I more like a Min-course.
So I know you’ll understand when I say I’d be happy to answer your QuestionS. ( it isn’t a simple yes/no answer)
as this goes beyond a simple Yes or No…I do charge a
Therefore
I charge a consulting fee of $$$$ I find this keeps it a Clean energy exchange ….an good exchange of my time info and yours time and shortcut to your final decisions.
Let me know when you’d like to set up some time for a consult and I’ll check My Calender. I’d love to help you
and am Glad you contacted me.
With my expertise I can provide you with information I’m sure will helpful in you making the best decision.
or you could barter, holiday vacation for 1-2hours or your time etc
By saying something like that you can feel you are being
Time is Money…… But you can’t really buy Time, but good information can save it. so Value it “Time/Energy”…and ON That Note
I was Happy To Share and Now to Refocus my energy…on the matters before me.
Have a Great Day
Keep those posts Coming
Deb Spring in Vancouver
Thanks for the feedback James, what I found interesting was this individual asked to be removed from the blog info a year ago, so he wasn’t interested in the free information for the last year!
Thanks Chris, I love that Carnegie story and have heard it as the plumber as well. The great point being knowledge has value. I have been a great advocate of the “fishnet” and I do enjoy helping people out and I understand some people will take advantage of it, I just have to be more cognizant of the repeat offenders!
Thanks for the referrals! I know you have been following my info for a while, I just checked back and see our first correspondence was back in June of 2005 and I appreciate you sticking with me over the years!
Hey Deb,
Very interesting way of putting it! I can see how being prepared with a plan like this could make it easier, my challenge will still be helping out people initially. I don;t mind helping out people to get them off the ground, if it just becomes extended help where my knowledge move to the exploited level, then I seem to be antsy. I think there is a middle ground and after all the great feedback from everyone I’m sure I am on the right path, now I just have to clear some of the underbrush and make it clearer!
Bill