When to Give Free Advice and When to Charge For It

There is an audio version below. 

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I’ve had a roller-coaster ride when it comes to free and paid advice. I’ve coached 127 hours for free, I have answered thousands of emails, I have written hundred’s of articles, and I have been a guest on over 100 podcasts. I have also charged for advice and now operate a $15,000-a-month business.

Figuring out when to charge and whether or not giving free advice will lead to business, is a delicate balance. There is a lot of information online about what to do and how it might lead to business. There’s some good stuff, but a lot of it is confusing and will have you working for free without the possibility of business later.

My business was growing pretty steadily from 2012 until January of this year (2015). At the end of January, I was a guest on Pat Flynn’s Smart Passive Income podcast. The growth went from steady to crazy out of control. February was my highest income month, my email list grew by 2,000 people, and I started getting 60 more emails a day. It was a blessing, but also overwhelming.

I’d like to say I was ready or that I handled everything properly, but I didn’t, and I may have been a little bit of a jerk. The last five months I’ve learned first hand when you should give free advice and when you should charge. During the last five months, I have done both, and I can say I feel good about my decisions.

How to Know

I can’t take credit for what I’m about to tell you. My mentor, Dixie Gillaspie, taught me this principle. The idea is you give free advice when you choose to—it’s a gift you give. This means that you don’t give away advice in hopes that it leads to business or as a part of some other strategy.

You give free advice through your blog, podcast, videos, and on social media to grow your dream. When you add value to people and help them through your free content, some people will decide to spend money with you. When that email comes into your inbox asking for help, it’s up to you to look at it and decide whether you can or will help. You don’t look at the email as an opportunity to make money.

Practicing Gratitude

I want to make it clear that I’m grateful for the blessings that have happened this year. Yes, it was overwhelming for a while, but I’ll take it. This is what I worked hard for, so I don’t want you to think that I’m complaining. This has been a good problem, which I smile at, as I work through it.

In the end, what led to my income and what grows my business has nothing to do with all the bad advice I got. Once I learned this idea that I have a gift, and I should decide when to give it, everything changed. I have clarity now and try to give my gift to as many people I can.

I do say NO. It’s important to say no when appropriate. You can’t say YES to everything or you’ll never have time for the things you want to do—especially if you’re building your dream on the side. You should not feel ashamed or let anyone make you feel guilty if you say no. You have to do what’s right for your life and dream. It’s your choice to give your gift or say no. It’s not a strategy.

Audio version: 

How do you decide whether or not to give free advice? Has someone given you free advice?

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Photo: Flickr/ Daniel Foster