Companies grow by charging customers for their products or services. The thought of giving free stuff away is counter-productive for businesses. When done correctly, giving away free stuff can increase revenue and business growth. Here are some reasons why freebies are a great idea:
- Attention: customers know you because of the free item
- Wide audience: many people are going to get the free item and share that information to their friends. In turn, the friends will share it to their friends and so on.
- Target audience: businesses will know who and where to share information with based on who stayed after the freebie
- Trust: customers know whether to use the company in the future, based on how good the free item is
- Revenue: free stuff encourages customers to come back with the intention of spending
- Business growth: Businesses cannot grow without revenue and good revenue will create opportunities for businesses to expand
It’s hard for companies to give away something free. The truth is, however, customers are wary of testing out new products. A sample will provide a platform for customers to take a risk. However, not every kind of “free” will work for your business. Therefore, here are two ways you can incorporate free into your business.
- Provide samples of free items. This will lure customers in to buy more of the same. A small sample of a larger product, a free trial, a temporary membership, a free consultation, or a free coupon will encourage people to try it before they buy it.
- Give away something free for signing up. Online users are usually encouraged to sign up to web seminars, newsletters, training programs, paid software and more. Giving away a freebie (free software version, coupons, e-books, web templates, etc) for signing up is a great motivator for users to choose your subscription over others. Showing them that the freebie and the product/service they are signing up for are both free shows no risk involved. They will sign up and keep the freebie because they aren’t losing sleep over it.
The freebie has to be something you’re willing to give away free without hurting your bottom line. Also, your business must be able to deliver on its promise, based on the freebie, in order to create revenue. Give prospective customers a taste of what your business offers and buyers will be tempted to try!
Remember, running a business successfully does not need to be complicated. Keep it simple!
For more ideas on how to grow your business, please check out our website.
Sign up for our weekly blog email update to stay tuned for details on our upcoming teleseminar for small business success.
Manny Skevofilax is a consultant and speaker that helps his clients successfully navigate the challenges of growing their businesses profitably. Since 2003, Manny helps businesses enhance their results by using his experience in strategic planning, financial statement analysis, operations, organizational development, and team-building. His consulting firm, PORTAL CFO Consulting, Inc., has attracted clients from diverse industries in the United States and abroad.
Manny can be reached at 410-808-3441 or via email at manny@portalcfo.com.