Give Free Offers And Generate Revenue For Your Business
This article is posted under Business, Sales and Marketing.Everyone loves free offers. And most people will not hesitate accepting something that’s being given away for free, right?
That’s why giving free offers is something that businesses can leverage on to generate revenue.
But the question now is, how exactly can a business earn more income by giving away free stuff? How do you use this marketing strategy for long term business profit?
At the most basic level, free offers tend to generate positive buzz. It grabs the attention of your target market and rallies them to your business.
However, aside from the obvious marketing advantage, how else can a business utilize this “Free Offer Strategy”?
Depending on the business model that you have, you can generate revenue by doing the following:
Free items only if a purchase is made
This is the shopkeeper business model’s most used technique. And they come in many forms:
- Price discounts for volume orders – “Pay one year subscription of our service and you get two additional months for free.”
- Free items packaged with the product – “Buy Product A and we’ll give you a complimentary pack of Product B”
Free basic with a premium offer
This is commonly used for subscription type business models. Here are some free offers you might have already encountered:
- “The basic version of our software is free to download and use. Our professional version which is more powerful and has more features is also available for a fee.”
- “You are now logged in as a basic user. Upgrade to a premium account now and you’ll enjoy more benefits.”
Free trials
This strategy is also known as the bait and hook – the business gives free products and services only for a limited time and hopes that it will later on convert to a sale. Some examples are:
- A software that runs with full features for a limited period. You will then have to buy a license if you want to continue using it.
- Free taste test booths at the supermarket. Income is generated by purchases from those who liked the product.
Free offers that will generate revenue in other means
This is one of the best ways to leverage on free offers because you’re not hard selling your product or service. However, this also requires good market research to ensure profitability. Proven examples are:
- Coffee shops that offer free WiFi. Revenue is generated through beverage and food sales.
- Giving away free printers. Income will come from repeat purchases of ink cartridges.
If you want to utilize the “Free Offer Strategy” to generate revenue for your business, then you have to remember two key points:
- Offer something that has good value to your market. The best things to give away for free are those that people normally pay for.
- Give away something that will make your market reciprocate, usually through a purchase or a positive recommendation
I hope I was able to give you something valuable today. If you want to receive more articles about business sales and marketing strategies, then please subscribe to Ready To Be Rich. It’s free! 
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Photo courtesy of .ehmi.
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Hi, my name is Fitz and this is my blog on personal finance.
Like google adwords, they gave free 1000 credits
now after you used up the credits and found that it works, then they have converted you into a customer.
And in the comic book business, there is this “FREE COMIC BOOK DAY”. http://www.freecomicbookday.com/
Free Comic Book Day is a single day – the first Saturday in May (On this year is May 2) – when participating comic book shops all over the world give away comic books absolutely FREE* to anyone who comes into their stores. There is one here in Metro Manila at “Comic Odyssey” in Robinsons Galleria Ortigas. http://comic-odyssey.com/
The whole idea of this is to attract new customer in reading comics. And keep the existing ones more active and hooked up. And also hopefully create more buzz to keep the business alive.
Parang dreamhost, namigay ng free hosting at after 2 years ka pa mag babayad… Wooot!
In the business that I lead I offer one free 30 min music lesson to people who are interested in learning. This way …
- I can show them that they have the potential to learn something amazing and even shock themselves with a 30 min free session.
- They can meet me (or any other tutors I employ) and find out if the service and style is for them.
- They get a truly valuable service. If they like it, they will become paying customers. If they don’t they wont. The power is in the hands of the customers, and my business is there to please. We got where we are through exemplary customer service, and we will stay through the same!
So that’s my thoughts!
the free offer is at the business website, so click on the link and look for the “free lesson” tab!
Maraming Salamat,
Tom.