Offering products or services for free tends to go against the grain for most business owners. After all, how much can we give away for free and still make a profit? We’ve each determined what kind of profit margin we need on every item we sell and are very accustomed to making sure we get it. Sure, there are probably some items we can get a higher profit margin on and some lower but the average hopefully is the number that each of us has determined is necessary to be successful.
So, how does offering something for free benefit us?
Offering something for free can benefit your business in a number of ways. First of all, there isn’t a person alive that doesn’t like getting something for free. Regular customers will see it as a show of appreciation for their business. It shows that you care about them and will make them want to spread the word about you and your business. Word of mouth advertising is the best there is. Regular customers that feel they are treated well trust you and your business and as a result want to tell others about you. If a customer recommends your business to a friend, your business is where that friend is going to go. People appreciate and trust the recommendations of their friends.
Offering something for free also has the ability of attracting new customers in the door that might not otherwise visit your shop. Again, there isn’t a person alive that doesn’t like free stuff. If all goes well, they could end up becoming a regular customer. And, as we discussed before, regular customers do our advertising for us.
As discussed in a previous post, “The Power of the List – Email Marketing”, offering something for free in exchange for email addresses is a great way of developing a list of subscribers that want to hear from you. Advertising in this way is extremely focused not to mention affordable.
What you offer to your customer is largely dependent on what your goals are for the campaign. It also helps to know and understand your customer. Understanding what they need or want will be very beneficial in determining what your offer should be.
Share your experiences with free offers—good or bad. Everyone could benefit from your thoughts, ideas and experiences.
