The Myth of the Free Lunch

Something for free always sounds better than something for cost, doesn't it? Well sure, it sounds better, but is it really? Can the free lunch truly exist? I got caught in the trap of the benevolent vendor recently when I offered "free services" to a local community association for as long as I was a member of their board. I made it clear that when I left, I would have to charge a fair fee, albeit a reduced not-for-profits' rate. In spite of that, when the time came to move from volunteer to paid services, the transition didn't go well.

It is compelling to consider the continuation of such philanthropy but the fact is that even if I only offered my time/services for free, there are real costs to be considered. In this case it was primarily the opportunity cost associated with using time that could have be turned to more profitable activities or to work for clients who have a higher priority. I am a keen believer in community involvement and volunteerism, but beginning to understand that offering services for free that you normally charge for comes with its challenges.

The question of "free" services needs a great deal of definition. This is in part because although the offer is given freely, the receiving organization still has an expectation of services being rendered with good quality and attention. However, your paying clients expect to you to show value for the money they are paying, otherwise why should they pay you at all? It is obvious that you need to give your paying clients the priority they deserve, but what does that mean to the expectations of a charity when you have made a commitment?

And so, back to a clear definition of "free services": it is imperative when giving (or receiving) free or deeply discounted services that the conditions of the gift including priority, timeliness of response, effort included (and not), term/ duration of offer, and so on are very clear between the volunteer and the association. Perhaps I failed to prepare them properly for the transition resulting from my departure and as a result, now the provision of two years of free services is being viewed as a plan to create a profitable dependency upon my company. It is in this light that I continue to hear one of my Dad's favorite sayings "you get what you pay for". Mind you, he also used to say, "never look a gift horse in the mouth". :-)

I have reflected on a few valuable lessons; first, I would encourage you to volunteer actively in your community, but be sure to volunteer services and effort that has no conflict with your primary business if possible; second, if there is no distinct term of offer, consider creating at least nominal cash exchange so that the expectations of both the receiving organization and the  donor are covered in such a way as to bind a valid and understandable contract; and finally, there is no free lunch, so be sure that the "real" transaction is clear and transparent and transitional terms are understood. Then the only question is "who's paying the tip?"