> "don't do work unless you're getting paid for it."
That was in the context of the product they were selling. A choice not to work on the product when there is not a customer paying you to do so. I can imagine they chose to operate like this because it is very easy to sink many hours into perfecting a product that does not have paying customers. I believe they will step away from this rule later when they have so many customers that they want to develop ahead of payments.
I'd like to hear more specific experiences on switching from working for free to $CONSULTING_RATE for the same client
I helped a local business group with their website, their previous host shut down and all they had was an archive on CD, they had some quotes for 10-20 hours to get it back up and running (and then everyone wanted to charge them hosting/domain registration).
I did the work for free. A couple hours importing databases and site files, configuring WP/Joomla (I forgot which), some testing... My hope was that I'd get a few leads from the 50-60 companies in the business group.
I was contacted by a few but once they found out I wouldn't do the work for free...
This is an example of a more general problem with undercharging (or doing spec work) in any creative industry. If you don't charge what you're worth, perhaps because you're trying to be helpful or offering "mate's rates", then you may get one happy client but you'll also get underpaid. Then that client will happily recommend your (excellent value!) services to their friends and colleagues who are also looking for (excellent value!) services and will be happy to similarly underpay you. And so it goes on.
In my experience, there are really only two levels of pricing that work. You can work literally for free, or for some token payment so someone is an official client of your business. This is sometimes helpful very early in a business to start some sort of portfolio and establish a bit of credibility, but otherwise I think it should be reserved for genuine charity work where it's clear that it's a gift and not your normal working practice. Everything else should be charged at decent professional rates immediately, both so you don't undersell yourself and to dissuade potential clients who can't or won't pay decent professional rates and all the other similar potential clients in their network.
I phrase it as "Standing problems I solve for free, sitting problems are my usual hourly rate."
Which is to say, if I can solve your problem for you before I get tired of standing up, I'm not going to bother to charge you. In my case that's usually a half hour or so.
People seem to respond well to that, in general. I think it's in line with how most people view the value of their own time.
It's also a one off, as well. Just because it only takes me 15 minutes a week doesn't mean it's free.
>>> dissuade potential clients who can't or won't pay decent professional rates and all the other similar potential clients in their network.
Agree. Keeping cheap and non paying clients AWAY should be a top priority for any business. In consulting, that's achieved by ALWAYS charging and being clear about your rate.
I discover many years ago that if you give the client a discount rate in the beginning [1], when you switch to a normal rate, they feel ripped off instead of greatful that they got the previous discount.
[1] Like charging a startup $50 instead of $150 an hour "just until they get their funding".
Never do commercial work for free. You won't be able to turn them into paying clients. If you're under-utilized, make an impressive portfolio piece on your own time. That will be better marketing than free work.
> I'd like to hear more specific experiences on switching from working for free to $CONSULTING_RATE for the same client
You probably can't. If you perform some regular work for someone for free, then they will think that that is your rate, and they come to you because your rate is so low.
The help the OP is talking about, is things like:
"Our most successful publicity attempts always sprung out of helping others-- we did several community workshops, mentored lots of people, helped people find jobs, etc. As time went on, we also got more invitations to speak about the product at events and conferences."
If you get free advice to someone, that is the giving part. It also is an area you know so you can speak with authority on the subject. The minute you are actively helping them (you are touching a computer or phone) that's when you should be getting paid.
I would also cut off the advice giving at a certain point and bring up money.
