The Economics of Free

I recently picked up a book by Chris Anderson called, Free: The Future of a Radical Price. I was hoping to get some examples of how companies gave away stuff for free, and reaped more benefit than their cost. While there were some very positive stories and I did get some ideas for my own business, this book delved much deeper into economic theory than I had anticipated. It got me thinking about some of the issues that we have with "Free" in our own industry. 

Nothing is more disappointing than showing up at a pay-per-design event (particularly where you've paid a booth fee to participate) and finding that you have to compete with a "Free" face painter. Even when I've shown up to do henna tattoos or glitter tattoos, I've had trouble selling them when free face painting was available as an alternative.

I've known many face painters who have chosen to donate their time and talent to an organization in order to hopefully gain some exposure in their community. Most of these artists find that they continue to receive calls from this organization and others asking if they will come and work for free at their next event....not exactly the exposure they were hoping for. Not to mention, it doesn't help to create positive relationships with other artists in the area. 

So what are you to do when you are asked to work at an event that you know does not have an entertainment budget, such as a fundraising organization? I've had these organizations ask me to work for free and I've had to try to make them see a different point of view. If I go to their event and work for free, they gain nothing. If I go to the event and charge attendees per design, and then split my income with the organization, I can actually help them to earn money. The only reason to not charge attendees would be if they were counting on "Free Face Painting" or "Free Temporary Tattoos" to be a draw to their event. In that case, it would be a good idea to ask event organizers if they know of a local company that might be interested in sponsoring a face painter in exchange for advertising.

And on the other side of the fence, how do you successfully charge for your work when someone else is giving it away? Instead of selling "face painting" or "temporary tattoos," create an interactive experience. Become a performer. Turn your workspace into a stage. Most people realize that you get what you pay for, and will see the value of what you provide. When comparing your work with that of someone giving it away for free, who do you think they'll turn to when they want to book a party?