Selling your system not your knowledge
February 9th, 2010 by Ingrid Cliff
Recently I have been having a great discussion with a colleague about the difference between selling your knowledge (doing the work for other people) and selling “how to” apply your knowledge.
If you take a look around the self help section of most book stores, you will notice that “How to” books have been taking over shelf space at a great rate of knots. People love to learn how to do things and are willing to give a lot of things a go provided they have the right information and support. But is this trend good or bad for business?
Most businesses take the “this will take away my business” approach, so horde their knowledge as effectively as squirrels store nuts for the winter. They only share information if money crosses their palms and jealously guard their hard won knowledge.
Yet other businesses take the total opposite approach. In the internet marketing world “moving the free line” is gaining massive momentum. What people used to pay for is now given away as free, with other paid items being offered to the free list later. These “back end sales” come as a result of the business having demonstrated their expertise and giving people a taste of what it would be like working with them. And people take up the paid offers in droves as a result of their experience.
But where did this approach come from? Well, free tastes have been part of history, but one of my favourite stories relates to a simple US shirtmaker in the mid 1800’s. He worked out that there were more customers out there who may be interested in learning how to make one of his shirts than would be interested in buying his shirts. So in 1863 he designed the first paper pattern in a variety of sizes, coupled with instructions on how to make his shirts. This was the first time that paper patterns had been made commercially available.
The idea was a massive success and before long he designed patterns for ladies clothes, mens trousers and childrens clothes. In fact the idea took off with such success that it became a million dollar international business. The guys name was Ebenezer Butterick and home sewers everywhere still buy Butterick patterns today. (Thanks R. Brasch “A Bee in your bonnet?” for this story).
The point here is most businesses have something that they can teach people to do at home and this information can generate revenue either from purchase of the information product or from “back end” sales. Taking an abundance approach in terms of sharing your information can be good for your business.
Until next time
Ingrid Cliff
We put your business into words
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