Free Stuff = Solid Profits

A lot of people think that free stuff is a good way to boost your sales. But, unfortunately, they are wrong. The only true way to increase sales is spending time and resources on your product and efforts

Why does this work? It turns out the key to collecting leads for any type of business has less to do with marketing and more to do with making it easy for people who need what you have. In order for your potential clientele know you exist, they need easy access to learn about what you have going on, where you are located, how many other customers there are like them - things like that. Then maybe you can convince them that what you have is what they're looking for.

The problem with free stuff is that it's usually designed to look like "something for nothing". So the people who are drawn to it believe they're getting something good without putting in the time, effort, or other resources required to benefit from it. That makes them feel like they've gotten away with something, not gotten a deal on something useful. They are not likely to transfer that feeling of satisfaction and 'getting away' to your business, either present or future.

They may be interested in your freebie but not interested enough in your product or service to become a customer.

In case you're curious, here's a very simple thing you can do to increase customers, sales and profits using just-free-enough free stuff.

1. Give away a low-value item - like a penknife with instructions on how to sharpen it (though sharpeners are more popular) or a book that has some inside information on your area of expertise.

2. Set your cost at about 1/3 of what it would cost to buy the item when supplied by itself.

3. Give an ad-free, unsubscribed low-volume newsletter to everyone who takes advantage of the free item.

4. Lure a small part of your client base into becoming customers by mentioning special deals and information available only to buyers - just enough to get them to try using your product or service after becoming familiar with it from the newsletter.

5. Since you've already made a sale, increase the amount of free stuff you offer while holding prices steady or lowering them a little more than necessary until you find that additional buyers are not generated by the increased exposure (note: it is NOT necessary or advisable to give away too much stuff; continue raising the price of what is given away until that point is hit).

6. Repeat.

The key to success is to make your freebie low-cost, low-value and ad-free, while still having a bit more value in it than the price you're charging for it. This keeps the people who take advantage of it from feeling like they've gotten something good for nothing and helps them build a good opinion of your service/product without being cheap about it.

You can also use this tactic with higher-value items, though the results may be dependent on what those items are - like people don't mind paying more for an expensive item if the price seems appropriate for the product due to its high quality or usefulness.

Of course, follow the steps above closely and make sure that all of the things you give away are also exactly what the customer needs to do something with your product. That's how you'll boost sales and profits while keeping costs down.

Stay tuned for my next article on what to do with customers who don't become customers.

This article was written by Alex Caswell, President of Dallas Essentials

What I am doing is easy - get a bunch of freebies I'm giving away to people in my area who don't have them. Then start sending ad-free, low-volume newsletters to those people.

The newsletters will have special offers and information about my products and services in them - just enough to make people interested in what I'm doing and maybe try it out.

I'm hoping that eventually, some of these people will become customers!

What are you doing? How's it going? Let me know! I'd love to hear from you!

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