FREEBIES: How does it benefit your business?

Everyone loves the word “free.” There’s something about getting free stuff that gets most people’s blood pumping.

From a business perspective, giving away something for free often supplies value on the back end. Sure, the upfront costs can be substantial, but the investment can easily pay off in some monetary form a little farther down the road.

The reason free giveaways work so well is two-fold. First, prospects who test your product or service risk-free might recognize its value and continue purchasing what you offer. Or even better, your prospect will get “hooked” on your product or service and won’t be able to live without it.

Take a closer look at a handful of the benefits — along with some real-world examples — to get a better idea of how “free” can benefit a business.

1). Free stuff creates a buzz. In today’s day and age, it doesn’t take long for news to travel. People like free stuff, plain and simple. And they’re more willing to pay more attention if they hear something from a friend. The power of social media.]

2). Encourages people to try your products/service/experience risk free. This is a benefit if you want to prove that you have something different or better to offer. People are more likely to try something they normally wouldn’t if it is free and without commitment. The idea is that if customers try something and like it, or have a positive experience, they’ll buy and then come back for more.

3) It’s the hook that gets customers in –  so they’ll stick around and spend more. Sure, there’s always a few that will order the bare minimum and leave. But most will stay for awhile and order more. Why do so many restaurants offer “Kids Eat Free” days? Because kids don’t dine alone. Their parents have to bring them and eat, too. The cost of a child’s plate is minimal in comparison. It gets the entire family in the door, so they spend money at your place instead of a competitor down the street.  I’ve seen a number of local restaurants promoting free appetizers for Tax Day – another way to get people in the door.

4) Customers are more forgiving when something is free. That’s not to say you should use it as an excuse to give poor service, but it can be an advantage for a new business trying to work out the kinks. While the employees struggle to learn the ropes, figure out the new computer system and adjust to the learning curve, you have a set of customers who are a little more willing to go with the flow. Just don’t take advantage of them.  If they leave with a negative perception, they may never come back. And of course will tell all their friends. Ah, the power of social media again.

5) Positive Brand Association. People love to get something for free, no strings attached. It makes them happy and brightens their day. Buy doing this, you can create a positive association with your brand.  Customers remember how special they felt and think highly of you. It’s also about positioning. Sometimes offering a completely FREE appetizer is more appealing to a guest than 15% off their meal, even though the percentage discount might be an actual greater dollar amount. People perceive that they’re getting something for nothing, which makes them giddy.

6). Creates a buying habit. By offering something free, people are more likely to give your business a try. And once they’ve been – assuming the experience was positive – they’re more likely to come back. We all know it’s harder to gain a new customer than keep a current one, and that buyers are creatures of habit. They go with what they know and feel comfortable with. Part of the challenge of a new business – or even an established business – is driving traffic (foot traffic to a retail location or traffic to your website). So now that your location is part of their consideration set, you’re much more likely to gain their repeat business in the future.


Be imaginative with your offer and make sure you hit the high value/relatively low cost end of the spectrum.

Remember, a free product/service sample is like a preview to the main show. When you target your product well it could just get you a swag of customers you never could have reached.

So now it’s over to you. Have you given away a sample of some description and did it work for you?

Grab your FREEBIE below!



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