A lot of hype surrounded the recent release of Chris Anderson’s new book, “Free: The Future of a Radical Price.” Anderson is the editor of Wired Magazine, and he argues that savvy businesses are embracing the concept of “free” to widen customer bases and provide more value.

Why “Free” Hurts Women In Business

The idea has become popular in recent months, so I wasn’t surprised when a marketing colleague of mine said, “Why are you planning to charge for that new e-book of yours? Why not just give it away, and have a call to action for your services at the end?”

Thinking about it, I realized that the concept of “free” is a slippery slope for women in business. We’re generous by nature, and chances are good we’re already giving away some of our time and expertise.

Women are also notoriously bad at negotiating higher prices and charging what they’re truly worth. (Want proof? Check out “Women Don’t Ask: The High Cost of Avoiding Negotiation.”)

“Free” May Not Always Benefit Your Brand

The concept of “free” also ignores the fact that the more people pay for something, the more they value it. Psychological studies have shown this to be true: in a 2005 Stanford study, people who paid more for a beverage not only thought it tasted better, they believed it made them perform better on tests.

I’m not against giving things away. In fact, I agree with Anderson: I think it’s a great business strategy. I just think it can be taken too far … and women, especially, should be wary of how much they’re giving for nothing in return.

What do you think? Do you have any experiences with giving things away? Let us hear your side of the story!