Free vs. Paid: Pricing strategy that converts

Hey there!

Ah, the age-old pricing question: When to give away your stuff for free, and when to slap a price tag on it?

It’s a decision as delicate as choosing whether or not to put pants on before your Zoom call — tricky, but the stakes are pretty high.

If you’re a consultant, coach, fractional exec, or agency owner trying to grow your business, pricing isn’t something to whiff at. It’s the difference between building a profitable pipeline of primed leads, and spending your days offering free advice to prospects who never EVER buy.

In today’s deep dive, I’m breaking down when to make your offers free versus paid — specifically for Scoped and Productized wedge offers.

You’ll learn which approach is best depending on your business goals, time spent, and value delivered.

Let’s get into it.

When should a scoped offer be free?

You wouldn’t give away the entire bakery, but maybe you let people taste the cookies?..

Scoped offers — small, well-defined slices of your expertise — can sometimes be free, but only when it serves a strategic purpose.

If you’re new to Profit Ladder, there are two types of Scoped Offers: 1:1 and 1:many (aka “1:n”). Let’s break each one down.

1:1 offers

One-to-one scoped offers are your audits, sprints, and discovery workshops. These are high-touch and high-value. They bring direct access to you, which should always be positioned and priced as premium.

There are two scenarios where you can consider making your 1:1 scoped offers free:

1/ When initially launching the offer
When you first launch your offer, you’ll need to refine till it’s ready for prime time. Those first few instances can be $0 to gather testimonials, improve your delivery, and build your confidence.

Just make sure you take on clients who are not only willing to provide you a testimonial, but are people and brands that you want a testimonial from. For example, if your ideal client is a food retail executive, you probably shouldn’t agree to do free work for the guy selling tacos out of the back of his car.

2/ When it’s tightly packaged
If your 1:1 offer is something you can deliver in a short burst (e.g. 1 hour) you can make it free. However, like with all wedge offers — but in particular this instance — it’s important there’s a clear and natural progression to your paid signature offer. Otherwise, you’ll fill your calendar with 1-hour sessions that go nowhere.

1:n offers

One-to-many (1:n) scoped offers include webinars, training workshops, masterclasses, masterminds, and retreats.

Free makes sense if your goal of the offers is audience growth, building domain authority, and/or becoming known as the go-to expert. For example, my Offer Development Masterclass is free for these exact reasons. And since I have another (1:1) scoped offer that’s paid, I choose to keep my masterclass free — at least for now.

Otherwise, charge.

When it comes to scoped offers, paid is better for:

• Generating direct revenue

• Using price as a filter to attract clients at the right size / stage

• Masterminds & retreats — these are way too resource-intensive to make free

• Helping your clients spend a modest amount on your wedge offer and therefore less resistant to pay for your signature offer

Scoped offers, like your signature offer, require your time and energy which should always be positioned as VIP access. And so, aside from the free cases laid out above, be sure to charge.

When should a productized offer be free?

Productized offers — toolkits, courses, templates — can also be free, but only when it makes clear, strategic sense to the business.

If you’re new to Profit Ladder, productized offers come in different forms, ranging from quick-win resources to comprehensive, high-value assets.

When it comes to free productized offers, here’s where they make sense:

1/ When they function as “lead magnets”
Free productized offers are great for list-building and audience growth. Things like ebooks, guides, email courses, checklists, and swipe files work well as entry points because they provide value while positioning you as the expert.

2/ When they introduce your systems
If your business relies on a unique methodology or system, a free productized offer can be a great way to introduce it.

A good example is a free checklist outlining the exact steps of your framework. It provides an overview of the process and builds trust but leaves the deep transformational work for a paid offer that features your hands-on expertise — AKA your signature or scoped offers.

3/ When they help qualify your audience
Sometimes, free productized offers act as a filter. If someone isn’t willing to download a free resource and engage with it, they’re likely not a great fit for your paid offers either.

However, if you find your inbox filling with messages from people who got results from your free offer and now want more, you’ve created an effective stepping stone into your paid services.

Otherwise, charge.

If your productized offer is comprehensive, valuable, or directly solves a meaningful problem for your ICP (ideal client persona), it should be paid. Period.

• Toolkits, online courses, and comprehensive frameworks require time and effort to build — so they come with a cost.

• Paid productized offers can also act as a qualifier, filtering out people who aren’t willing to invest in solutions.

• If it saves your clients considerable time, helps them make money, or teaches a hard-to-learn skill they need, they should pay for it.

Final thoughts

Deciding whether to make your offers free isn’t about gut instinct or guilt — it’s about strategy.

Free offers should build authority, generate leads, and/or serve as proof of value. Paid offers should then deliver deep, transformational results and filter out those who aren’t serious.

If you find yourself giving away too much, too often, take a step back and ask: Is this a strategic freebie, or am I just undervaluing my work?

Resources to help you grow your biz. Add yours by earning a shoutout or paying.

🪜 How to create a thriving mastermind that grows your business

🪜 Cold outreach is broken… unless you have a playbook that leads with value and fosters genuine relationships

📌 2 ways I’ll help you scale your business:

1. Develop wedge offers that attract & convert ideal clients — learn more

2. Develop your automated sales engine (without selling) — learn more

🤘🏼