Monday (the concept of free) edition: Wha’ Happened?

Posted on July 13th, 2009 – 8:50 AM
By Michael Rand

free.gifWe’ve been thinking lately about the concept of “free.” Malcolm Gladwell wrote recently in the New Yorker about Chris Anderson’s book “Free: The Future of a Radical Price.” The book and the review deal with the notion of “free” information in the digital age — be it in the form of media content, music or something else. Anderson — and we’re both simplifying and paraphrasing here — seems to argue that giving things away allows you to sell products around those giveaways and creates demand for other things you don’t give away, which should create a new business model for entities struggling to make money off of things they once made money off of (like, say, newspapers and compact discs). Gladwell says, essentially, “not so fast,” though not in a swift takedown fashion.

On Sunday, we saw the practical application of “free” in the sporting world, heading to two local events that promoted themselves as available to consumers at no cost: the Minnesota Wild prospect scrimmage at Xcel Energy Center and the 3m Champions Tour event at the TPC in Blaine. Truth be told, we probably wouldn’t have attended either one of these events had there been even a nominal charge to get in (sure, a media pass probably could have gotten us into either one in that case, but we don’t feel right about busting that out unless we are there specifically in a news-gathering capacity). Seduced by the word “free,” though, we headed to both along with MC Creme Fraiche.

We expected to see a couple hundred people at the Wild scrimmage. Instead, there were easily more than 1,000 (1,650 according to beat man Michael Russo, whom we should note received nice cheers from the crowd after being interviewed on the big screen). And indeed, it was free: just walk right in and sit down. There were moderate concessions being sold, but it was easy not to pay a discernible cent (which we didn’t). The real currency for the Wild, though, came in the ability to give a positive experience to die-hards and maybe some folks who had never come down to see the team. They had a team representative talk about available season ticket packages over the P.A. system. That was the exchange — though nothing had to be bought or sold, per se, there was a captive audience for a marketing message. Sure, it was a willing audience, making it mostly a win-win proposition. But still, it perhaps was a reminder of the selling power of “free.”

The Champions Tour event offered a similar lesson. Using a different business model this year, the event decided to make general admission free for all days, while trying to make up for lost revenue with additional sponsorship. We can’t say for sure what a difference it made in the crowd, but we do know it accounted for at least two more patrons on Sunday to watch Bernhard Langer chip in for eagle on 18 to earn an exciting one-shot victory. We spent a total of $2 in Blaine — a charitable donation in exchange for a delicious ice cream treat — while watching about two hours of golf on a beautiful day. We wandered over to the family fun zone and played, of all things, Ms. Pac-man while waiting for the leaders to come in. That, too, was free — as was parking and the efficient shuttle ride to and from the parking lot. Again, though, there is a trade-off: the idea is that more people through the gates appeals to sponsors, of which there were plenty. Would you rather pay $20 and see less of that, or would you rather go someplace for “free,” and be subtly but consistently reminded of the corporate tie-ins? (That’s not to say you can’t go many places where you have to both pay the money and ingest the constant messages).

We have to say, we kind of like the free model — even if we’re aware that there is always a price attached, no matter what. Maybe that’s the deal-seeker in us talking. Maybe it’s the idea of things being available to the masses that’s appealing. We’re certainly no economist, but we wonder if the model could ever extend to major pro sports — particularly in these (cliche alert) tough economic times.

Our questions, to you, then:

1) Would a struggling pro team — like, say, the Timberwolves — be better off giving away a certain number of tickets rather than sharply reducing prices to $5 or less? And are you more likely to attend something that’s inexpensive or free?

2) At what point does giving something away diminish the value of the product/service itself?

3) When you attend something that’s free, do you consider why it’s free and/or assume you are being sold something on the sly?

4) Langer’s chip was really exceptional and made the whole afternoon. Describe one free event you have attended where something unexpectedly amazing happened.

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