8.4.2011

Giving as a Business Strategy.

We’re pretty good at giving.

Especially when it’s convenient or socially popular.

We give when it’s easy to give.

And that’s not blaming anyone or pointing the finger at somewhat irrelevant Christmas Cards.

That’s just how we’re wired.

Our brains are massive “Risk/Reward Calculators”.

We carefully assess each giving opportunity (sometimes without even “thinking” about it) and decide how to behave based on how big the prize is for us.

We each do it differently too.

How we look at giving depends on how we usually look at anything.

  • For those who are especially intellectual, we give when we can logically justify that giving is a better decision than not giving.  We look at the rewards we get or the prize that we give up and then adjust our behavior accordingly.
  • For those who are more emotionally aware, you give when we feel like it’s the best course of action.  Adrenaline and empathy play a big part in how we come to the decision to give to others.

Regardless of how you make the decision, you decide how and when to give.

We need to give as a business strategy.

There are a lot of strategies and tactics that we employ in our attempts at business growth.

We use “link bait” to get people to read our content.  We offer free trials to get people to use our services.  We send out marketing newsletters, write blog posts, and share content on dozens of social media platforms.

Maybe we should start giving…

And not just the ways you are giving right now.

You can call “giving away whitepapers” as giving, but it’s probably more about the leads you get than the quality of the material that you are sharing.  The same thing applies to almost every business development strategy that we tend to employ.

We categorize them under the category of lead generation.

But in reality we pretend to give.

We are giving expecting to get something greater in return.

  • More money.
  • More attention.
  • More publicity

It’s really all about us.

And that just doesn’t work.

  • It’s why you aren’t getting leads to turn into buyers.
  • It’s why more people aren’t signing up for your free trials.
  • It’s why your industry isn’t taking you more seriously.

Buyers know the difference.

Buyers know when you really care and when you try to put a friendly smile on your selfish behavior.

You might think you’re being witty.

Buyers just think you’re being a jerk.

Maybe it’s time for a change.  Maybe it’s time for fewer business shenanigans.  Maybe it’s time to care more.

Giving is a better business strategy.


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  • http://www.partnersinexcellenceblog.com Dave Brock

    Fantastic post Dan–a great reminder and, personally, very timely!  Thanks for writing.

    • http://www.DanWaldschmidt.com/ Dan Waldschmidt

      Thanks, Dave.

      I wrote that earlier this week (I promise).  It’s something that I have been thinking about recently.  

      There seems to be a logical balance between raw sales tactics and altruistic selflessness.  I’m trying to figure out what that is.  

      Dan

  • http://www.partnersinexcellenceblog.com Dave Brock

    Fantastic post Dan–a great reminder and, personally, very timely!  Thanks for writing.

  • http://www.DanWaldschmidt.com/ Dan Waldschmidt

    Thanks, Dave.

    I wrote that earlier this week (I promise).  It’s something that I have been thinking about recently.  

    There seems to be a logical balance between raw sales tactics and altruistic selflessness.  I’m trying to figure out what that is.  

    Dan

  • http://twitter.com/careercreatrix Emma Stangl

    This is not a simple easy question to answer….on the one hand, we are taught to value ourselves and what we have to offer and not give it away.  I do know that if you give too much away people WILL take advantage of you. 

    On the other hand, I completely agree with you that being stingy harms you in the long run. It is destructive to relationship building….not to mention that sharing just feels better.

    I do note, though, that “giving as a business strategy” is still conditional, (i.e. expecting something in return), the only difference that you have proposed here is that you are not expecting something (money, attention and publicity) back for that individual transaction…..you are still expecting or hoping that your generosity will reward you in the long run though. Again this is why I say it is not a simple question, reconciling altruism with business.

    So what do you do when you run into a person who you can tell is just trying to get as much free advice from you as he/she can?

    • http://www.DanWaldschmidt.com/ Dan Waldschmidt

      Emma,

      Great points.

      Giving away your services doesn’t need to equate to devaluing yourself.

      That’s a separate mental and emotional problem.

      As I mentioned in a separate comment, giving (by definition) is an investment without an expected return — not short term, not long term.

      Giving means that you invest your time and energyin others.

      The reality is that you can’t invest in everything. You can’t help everything. You can’t do every good deed. You have to pick and chose how and when you do pro bono work.

      When you give (help, time, advice, free products, etc…), you are making a choice. When you give, it’s impossible to be taken advantage of. It’s impossible.

      It’s your decision in the first place. When you are tired of giving, you simply need to stop — and let people know that more help requires money. That’s a logical and reasonable explanation.

      What is a little harder to explain is all “the strings” we try to attach to our help.

      Dan

      p.s. Thanks for stopping by and sharing some smart observations

  • http://twitter.com/careercreatrix Emma Stangl

    This is not a simple easy question to answer….on the one hand, we are taught to value ourselves and what we have to offer and not give it away.  I do know that if you give too much away people WILL take advantage of you. 

    On the other hand, I completely agree with you that being stingy harms you in the long run. It is destructive to relationship building….not to mention that sharing just feels better.

    I do note, though, that “giving as a business strategy” is still conditional, (i.e. expecting something in return), the only difference that you have proposed here is that you are not expecting something (money, attention and publicity) back for that individual transaction…..you are still expecting or hoping that your generosity will reward you in the long run though. Again this is why I say it is not a simple question, reconciling altruism with business.

    So what do you do when you run into a person who you can tell is just trying to get as much free advice from you as he/she can?

  • http://www.revenue-iq.com Chris Arlen

    Give-to-get is an integral part of generating new business. But the strategy is not flawed, only the execution. After the 5th, or 10th free ebook or whitepaper, its easy to see which are tricked out SEO titles with little value. That said, giving insight and info can educate readers, helping them make better decisions, such as hiring a consultant, supplier or product.

    • http://www.DanWaldschmidt.com/ Dan Waldschmidt

      Chris,

      Trading value for money is why we are in business.

      However “give-to-give” has a greater long term ROI.

      Look at companies like Zappos, May Kay, or State Farm. All of them has seen substantial revenue growth by giving away (no strings attached) services or products to potential buyers.

      Maybe instead of “giving” we need to call it investing or trading, because means that you anticipate NO RETURN. That’s the definition. Which is probably why most of our business tactics around “giving” fail.

      Dan

  • http://www.revenue-iq.com Chris Arlen

    Give-to-get is an integral part of generating new business. But the strategy is not flawed, only the execution. After the 5th, or 10th free ebook or whitepaper, its easy to see which are tricked out SEO titles with little value. That said, giving insight and info can educate readers, helping them make better decisions, such as hiring a consultant, supplier or product.

  • http://www.DanWaldschmidt.com/ Dan Waldschmidt

    Chris,

    Trading value for money is why we are in business.

    However “give-to-give” has a greater long term ROI.

    Look at companies like Zappos, May Kay, or State Farm. All of them has seen substantial revenue growth by giving away (no strings attached) services or products to potential buyers.

    Maybe instead of “giving” we need to call it investing or trading, because means that you anticipate NO RETURN. That’s the definition. Which is probably why most of our business tactics around “giving” fail.

    Dan

  • http://www.DanWaldschmidt.com/ Dan Waldschmidt

    Emma,

    Great points.

    Giving away your services doesn’t need to equate to devaluing yourself.

    That’s a separate mental and emotional problem.

    As I mentioned in a separate comment, giving (by definition) is an investment without an expected return — not short term, not long term.

    Giving means that you invest your time and energyin others.

    The reality is that you can’t invest in everything. You can’t help everything. You can’t do every good deed. You have to pick and chose how and when you do pro bono work.

    When you give (help, time, advice, free products, etc…), you are making a choice. When you give, it’s impossible to be taken advantage of. It’s impossible.

    It’s your decision in the first place. When you are tired of giving, you simply need to stop — and let people know that more help requires money. That’s a logical and reasonable explanation.

    What is a little harder to explain is all “the strings” we try to attach to our help.

    Dan

    p.s. Thanks for stopping by and sharing some smart observations

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