How Giving Away Free Stuff Grows Your Business

A lot of business owners wonder why they should give something away for free when they could charge for it. The reality is, free offers are valuable and they work. Freebies are a great way for people to get to know you. They are perfect for allowing potential customers to try before they buy.

While there are many benefits to the potential customers, you, the business owner can reap the benefits too.

Here are 3 ways:

  • Freebies allow you to pre-qualify your potential customers.
  • They allow you to quickly build your mailing list.
  • They give you the ability to continue to contact these people to nurture the relationship so they become paying customers.

Now a fourth:

Even better, they are the perfect way to make sells. That’s right, you can profit from giving stuff away.

Think about it. When you get something for free, you are excited. Doubly so if the person or company giving away the item has a solid reputation that you recognize or trust. So, when you see an offer after receiving the freebie, you’re more likely to buy, right?

The key to making this method work is to know your audience and what they want and need to solve their problem. Your free offer starts them on the journey to resolving their issue, the upsell(s) give them more tools or information so they can complete the process quickly or easily.

The other important part of this is pricing.

Consider the value (or perceived value) of what you are giving away. You don’t want to offer a free 5-page report with a value of $10, then instantly ask them to drop $200 for the next product…unless perhaps you’re following up in person or via phone call.

However, if the free item is of top quality and has a high perceived value, then it may be okay to offer them a higher-ticket item in the backend. For example, if you are a personal coach and you normally charge $100 for a 30-minute consultation, then it would be expected that your upsell offer(s) would come with a higher price tag.

Just some thoughts to help you get into freebie mode. It really is a lucrative model when done right.

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