What is one of the biggest reasons marketers resist giving something away for free? You're probably not going to like the answer: It's because they think like an hourly wage earner or in getting paid by the piece.
This has always been the struggle with people that look at making a living as getting something by only one means; that's why they struggle so much.
It's no different with online marketing. I'm not just talking about those free add-ons at the end of your ad copy that don't cost a thing to put up. I'm talking about something of tremendous value to you, that is even of more value to your customers. In other words, they know that is costs you something to give it away to them.
Now here's why you've got to break away from the hourly wage mentality as it applies to products or services: you can't overestimate how good you're going to do. That's the problem with a lot of marketers who don't offer a lot of their stuff for free. They think they're going to sell a million of what they're offering, so they can't afford to give it away, because they believe they would lose too much revenue as a result.
It sounds logical, but it's wrong thinking. What would you rather do, make $2 each off of something that sells a thousand, or make nothing off of something that you give away to 200,000 people? The answer depends upon what value you put upon 200,000 people, that upfront, you make no money on.
Giving away something free, has to be looked upon as a down payment for something in the future. It's planting seeds in the ground that the results of can't be seen in the short-term.
Do you want to know the real secret in all of this? Get a group of fans that you've given away some free product to, and you're set for life.
When you develop a base, at that time you can market stuff to them that they will be glad to purchase from you. Having a base is the most important part of online marketing. Free is the best way to optain it.
I couldn't agree more. In a recent marketing campaign we offered our customers a $500 gift card from top retailers (Louis Vuitton, Coach, Apple, etc) for the next airline ticket they purchased. My inital thinking.. these people are buying the tickets regardless of the $500 GC but it turned out to be so much more beneficial in the end. Not only did we beat out our competitors in price, incentives and customer service; but when they received that $500 GC after they traveled (even a month or two later) they remembered our company and we can only speculate that next time they book a trip, they will call Spotnana.
Posted by: Lyndsey | December 11, 2006 11:40 AM | Permalink to Comment