"Never underestimate the value of giving things away." I remember as kid hearing these words on a regular basis. In fact this philosophy was re-enforced so much by my parents in my younger years that it has become a part of who I am today. But, I'm also a businessperson who enjoys earning a living, and in business, our primary goal is to maximize profits. So we have what appears to be an obvious conflict here. How does one remain profitable, let alone increase profit levels if they're giving things away?

This really isn't a new concept. In the traditional business world it's been done for years. It usually comes in one of two forms or a combination of both. The first is giveaways that are used to lure customers into making a purchase or as thinly veiled advertisements. We've all seen these tactics. Contests you can win if you purchase a product, free Tupperware for applying for a department store credit card, a pen or a mug for every $20.00 of gasoline from a particular service center. You get the idea. We've also seen large companies and wealthy business owners throw a lot of money and/or resources at "good causes". I'm sure that some genuinely do this for the betterment of society. The skeptic in me though suspects that often this philanthropy is nothing more than an attempt to buy credibility and respect as opposed to earning it.

So how does all of this apply to online business and how is a small online businessperson able to capitalize on it? Actually, when we look at the online world we don't have to look very far to realize the potential value of giving things away. In fact much of the technology we use online was "given" to us by a few brilliant people who were more interested in sharing their inventions and ideas with the world than becoming millionaires. It should be noted that many of these people as a result of their efforts have in time done very well for themselves. They have earned a great deal of respect, a loyal following and incomes to match as a nice little bonus. Indeed on the Internet today there exists an entire culture of people with this mindset. Why do they do it? Why give it away for free? Are they crazy? The individual reasons are as abundant as the number of individuals but they all share one common thing. An understanding that by providing value to people, they will receive value in return. It may be money, fame, additional resources to continue with projects, respect or simply the feeling of accomplishment that comes with a job well done. Not so crazy...and there's a reason why quite a few fortune 500 companies are embracing the philosophies of the open source software movement. The business world can learn a lot from these ideas.

However, there has to be a balance when it comes to business. If you are in a position where you don't need to worry about profits and don't have any expectation of future ROI, fine. Give everything away and someday you may very well be rewarded. Unfortunately there is realty to contend with! The reality is that we are here to make money. So what can you give that won't hurt your profit margin? Lots of things! If you're really smart about you will actually be able to boost your profit margin considerably.

Consider all of the things you have in your