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The Value of Free, Giveaway Marketing

By Michael Stelzner

Free DiskWant to attract folks en mass? Give it away. Why are people attracted to free stuff?

As a young child, I remember my dad telling me, “Michael nothing is free in this world.” I made it a point of trying to stump him with things I thought were free. He always came back with, “If it costs somebody, then it’s not free.”

He had a good point. Whether it is time, resources, supplies, etc., some person or company has to pay for that free t-shirt you got at the recent trade show.

So what exactly is the marketing value of free stuff?

Let me rant and throw out some ideas:

  • Some of the most successful marketing campaigns started with free samples (think Sunday newspaper shampoo or AOL disks).
  • Free products and information are very effective mass targeting vehicles—you will get a lot of folks coming for the free stuff.
  • Free is horrible for targeted marketing efforts. Because free products tend to attract many people, you will need to filter results to find your ideal prospects.
  • Free is excellent for building a list that you can market to over time. Most people feel obligated to provide some basic information about themselves in exchange for something free.

Let’s hear some other effective uses of free samples and product? What are your thoughts on giving away the farm to gain many more farms?

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This entry was posted on Monday, August 21st, 2006 at 4:02 pm and is filed under Lead Generation, Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

  • David and Bob - What is really funny is that a FREE something is often rather inexpensive when the consumer sits down and really thinks about it. For example, those 50 downloads at eMusic might have only a value of $50 to the consumer. Can we really be bought for so cheap? Persuasion theory says YES, absolutely. Back in my grad school days I studied theories of persuasion. Ever been to a car dealership and they offer to BUY you a soda from the vending machine. That simple 50 cents to a $1 spent by the salesperson creates the feeling of obligation on behalf of the consumer. The result is they will give the salesperson more of their time and feel obligated to return a favor (i.e.; make a purchase, tell a friend, etc.). There is something powerful in free. - Mike
  • When eMusic started, they gave away 50 free downloads for trying their subscription service. Their niche is music on independent labels, but a niche isn't good enough. They needed an outstanding offer to compete in the big leagues. Me, I took the bait. Since then, they've expanded their indie catalog to include better-known acts. Trial subscribers now get only 25 downloads. But members get 50 for referring their friends -- people who are much more likely to stick around after the honeymoon. I love it!
  • On the contrary, free offers can work wonderfully for targeted marketing efforts, provided the free offer is appropriate and relevant. White papers are a great example of a free offer that works for niche markets like network administrators. But if you offered those same network administrators a free iPod in exchange for inquiry, you'd get poor lead quality: people who just want a free iPod, but don't necessarily have the problem your white paper and product address.
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