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Do Freebies really work?Views: 2309
Sep 22, 2005 6:30 pmDo Freebies really work?#

Deepak Morris
I see a lot of the "FREE download" type of marketing, where something is offered free with the hope that it will induce people to then purchase the actual product.

For example, someone may offer a free e-book and then send emails to those who download it, urging them to purchase the product / service that is actually on sale.

I admit I'm a tough prospect and selling me anything is never easy. I usually take the free stuff if it looks promising (most of it turns out to be useless, which is logical) and ignore the appeals to buy, mostly because the appeals (and the free stuff) offer no real "wow" factor. I never get the feeling that I'm missing out on something by not buying the product / service.

Is this a common experience?

Has anyone here bought a product / service as a result of this kind of marketing? If so, what induced you to buy?

Deepak

Private Reply to Deepak Morris

Sep 22, 2005 10:37 pmre: Do Freebies really work?#

John B
I'm usually a very skeptical prospect as well. But I've found value before in freebies. If the quality is there, it can turn me on to an author or expert.

I've enjoyed Seth Godin's free downloads. He always offers quality stuff.

Laura Ries is the daughter of marketer Al Ries, and her blog, "The Origin of Brands" is excellent. I'm more inclined to look at their new books coming out as a result.

Jay Abraham offers nice freebies every now and then, that I find value in.

The "free download" strategy has probably been overused. Just like the "free seminars" you see for real estate, stock trading, or whatever it may be. Usually more hype than substance.

-Jonathan

Private Reply to John B

Sep 23, 2005 12:00 amre: re: Do Freebies really work?#

>> Barry Caplan - Start Your Future Today
I just bought a disk management utility for Windows after trying a free download. The demo was crippled in the sense that it displayed all the features but didn't actually do the work.

I was not thrilled that after I ordered the online full version, I was told that I had to wait up to 24 hours for someone to hand process my order (this is verions 7 of the product, they should have that part automated by now).

Had I known, I would have bought a competitor, as the reason for buying online in the first place was to save a trip to the store and do the work then and there.

I have not yet been able to reschedule time to do the work, so I don't know yet how satisfied I will be in the end.

Best,

Barry

Private Reply to >> Barry Caplan - Start Your Future Today

Sep 23, 2005 10:35 amre: Do Freebies really work?#

Denise O'Berry
Hello Deepak --

Yes, freebies definitely do work. Do they work to sell a product? Sometimes. They work better to begin a relationship with a prospect so you can ultimately turn them into a customer.

I know what you are talking about with the barrage of messages after downloading a free ebook. It does get a little irritating at times, but that's the "cost" of free from those people. I don't agree with that approach.

The way I see it, those marketers are trying to go from "Hi, my name is ..." to "Would you marry me." And that's not successful most of the time. The relationship and trust needs to be built first. Then many of those who downloaded the free ebook turn into customers.

Best regards,

Denise O'Berry

Where do smart entrepreneurs go to learn what they
want to know? The Small Biz Boot Camp of course.
http://www.smallbiz-bootcamp.com

Private Reply to Denise O'Berry

Sep 23, 2005 6:52 pmre: re: Do Freebies really work?#

Deepak Morris
Denise,

Fascinating.

So, if I read what you're saying right, the most effective technique would be to have the "downloaders" join - or be added automatically to - an e-group (or equivalent) that encourages them to interact with the leader and each other, post queries, share triumphs and failures, etc. Along the way they may actually buy the product or service because they see that it does indeed satisfy a need.

I see a lot of merit in this approach. For one thing, the product can be customised "on the fly" based on the interaction of the members. For another, the focus shifts from "selling the product" to "satisfying the need" and, as any good marketer knows, you can't go wrong with that.

Food for a lot of thought.

Thanks,
Deepak

Private Reply to Deepak Morris

Sep 24, 2005 3:45 amre: Do Freebies really work?#

Kurt Schweitzer
Deepak,

Personally, I hate the "free" downloads.

1) They are rarely unique offerings, but rather "filler" material that can be obtained many places on the Web, and don't serve to differentiate the website offering them from their competition.

2) They rarely give me any incentive to download them, except that they are "free". That's not reason enough! Why should I clutter up my disk drive with your report? Why should I spend my time reading it? Just because it doesn't cost me any money doesn't mean you don't have to sell me on it!

To me, marketing is about building a relationship. First you (the seller) have to gain my attention so that I know you exist. Then you need to show me that you're worthy of my spending my time to get to know you at all. Next you need to convince me to introduce myself to you, so that YOU know that I exist and might be interested in your product. ONLY THEN should you start selling me (and recognize that I need to control the sales process.)

All of that is only the first half of the process. Once you convince me to buy from you, the real work begins. Why should I USE your product? How are you going to keep me happy about using it? Do you have anything related to it that I might buy from you? And perhaps most important, is my experience with your product SO GOOD THAT I TELL MY FRIENDS?

If you show me back issues of your newsletter containing information that's useful and important to ME, I'm likely to sign up for it. But trade my email address for a "free" download? Not likely!

Kurt Schweitzer

Sound and Loving Care (http://soundandlovingcare.com) - for keeping loved ones with Alzheimer's disease, stroke and memory loss happy at home.

Private Reply to Kurt Schweitzer

Sep 24, 2005 3:34 pmre: re: Do Freebies really work?#

Kathryn Spencer
I really think most business-type people feel the way Kurt does about free newsletters and the like (if they don't, after the first one... they probably will.)

Private Reply to Kathryn Spencer

Sep 27, 2005 4:10 amre: re: re: Do Freebies really work?#

Craig Kiessling
I completely agree with Kathryn & Kurt.

There is a huge canyon of difference in "business-type" people, and the mlms, the get-rich-quick, etc. types.

It seems obvious to me that if the second group would learn from the first, that they'd do extremely well.

However, most of the websites I've come across of people in that second group are always very amateurish and turn me off in a minute. And I do end up downloading alll of the free stuff, sloshing through it, and then deleting them, because as it's been stated already - they are rarely valuable.
It would seem that if these people in the second group are making decent money, then it is from fellow people within that same group.

I am curious to know if there are any out there who have learned to cross that great divide, and take these non-traditional products and services, and apply big-business methods, etc. to them?

Private Reply to Craig Kiessling

Sep 28, 2005 11:22 pmre: Do Freebies really work?#

Garland Coulson

My two free downloadable e-books, "Promote Your Web Site for Free" and "Questions to Ask Your Web Designer" result in 10-15 signups per day.

I keep in touch with these people via my newsletter. This pool of people are where most of my paid clients come from including clients for coaching, online workshops and purchasers of recommended affiliate products.

The technique works extremely well for me and I get lots of very positive comments about the freebies and the free newsletter.

As far as buying goes, I originally was introduced to a free email course from Perry Marshall. His free course let me to buy his Definitive Guide to Google Adwords e-book and to join his affiliate program and promote it to 1,000s of my readers.  I probably wouldn't have purchased it but for the quality of his free giveaway.

Garland Coulson, "The E-Business Tutor"
Market while you surf!
FREE Traffic and Research Toolbar for FireFox and Internet Explorer
http://www.freetrafficbar.com 
Moderator, Internet Marketing Tools
http://imtools-network.ryze.com

Private Reply to Garland Coulson

Oct 07, 2005 4:20 pmre: Do Freebies really work?#

Jessica Sellers
From my experience, if you are going to offer a freebie it had better be worth something! Otherwise you are just producing clutter.

However, it can be difficult sometimes to decide how much of your knowledge to share to gain credibility but still leave your potential client hungry for more, especially if you are in the education business.

We specialize in teaching real estate agents how to use their license to their advantage to invest in real estate. We have a free seminar about once or twice a month and invite all the real estate agents in the area to come. Those who attend can choose from a list of topics from Mike's program and he will discuss the chosen topics in depth until he runs out of time.

The best part is, I have heard of clients who went and made great investment deals just from the knowledge they gained in the free class. Then they are even more motivated to hear about the rest of our products!

The main drawback of the seminars is the cost of production. However, when people respond to the message, we are more than amply rewarded.

Jessica Sellers
Mike Watson Institute










Private Reply to Jessica Sellers

Oct 11, 2005 3:50 pmre: re: Do Freebies really work?#

Paul Strauss
Wow, Jessica-- you have one of those names like my CPA-- Bill (not making this up) Eftax-- where I read your name and say, "Of course. What the heck else would you do for a living?" :)

Private Reply to Paul Strauss

Oct 11, 2005 8:28 pmre: Do Freebies really work?#

Debbie Fortier-Success Leaves Clues
Hi DeePak..

Yes Freebies do work if they are of value to your customer.

For example, taskplus is a FREE scheduler and online appointment maker with an alarm.

Vista Print has FREE biz cards always, only pay shipping.

(A great place now to get Free Holiday Greeting Cards)

There are others as well like a FREE phone number to your email address. And a low cost $2 a month toll-free number. ($2 activation fee for toll-free number)

We provide these and many more items to our partners.


Glad To Help...

Debbie

http://wecare.onesimplecard.com

Private Reply to Debbie Fortier-Success Leaves Clues

Oct 14, 2005 4:19 amre: re: Do Freebies really work?#

Karri Flatla
A thought provoking question, Deepak.

I myself have been considering adding some kind of incentive to get people to take my online small business survey. A real estate agent I know runs a real estate investors association (REIA) in the U.S. and gave away a free e-book for REIA members who answered one or two quick survey questions at the local REIA website. He was quite successful with this campaign.

But this was also a situation where the person receiving the freebie was already strongly affiliated with the organization offering the download. Quite different than offering a freebie to web traffic in general (for e.g. in the case of trying to incent newsletter signups or survey responses).

Given the responses here as well as my own feelings about freebies (you often get what you "pay" for), I think this marketing method has to be carefully crafted to pull from the desired audience in the first place. If not, you might just get people looking for freebies but not necessarily a product or service worth paying for.

Now, if your free gift or download is unique or under your company's copyright protection (like the gentleman here who offered e-books he authored himself), then it should theoretically convey more value and thus have a better response rate ... That method, of course,also means you must spend time, money, or both generating the "freebie." And many probably don't do this. Perhaps it is worth the dollars to offer something of at least nominal value rather than something that could literally be found anywhere without expending much effort or spending any money.

I tend to avoid free downloads myself, mainly because half the time they don't download properly, or I feel it will simply end up as more junk on my hard drive that I may never have the time or inclination to read/use anyway. (Even freebies can leave you feeling 'ripped off!')

Karri Flatla, B.Mgt.
snap! virtual assistance inc.
Don't just outsource. Outsmart.
Subscribe to Outsmart,
the newsletter for small business with big purpose.

Private Reply to Karri Flatla

Oct 17, 2005 9:06 pmre: re: re: Do Freebies really work?#

Chris Dierkes
Deepak,

Great question.

Just from my own experience, I have found that freebies can work. However these effective ones tend to be the exception rather than the rule.

The effective ones, in my mind, all fall into one category: they sell "generic" or "universally applicable" types of information. Especially for anyone in online business for him/herself. Information that informs the reader on how to do something, for example, the best way to approach forum or article writing, how to get in touch with one's goals, and so on . And by effective I mean either seriously having me consider buying or actually buying the person's product. [e.g. The freebie leads me to buy the individual's book].

If the freebie is an immediate beachhead to someone's main business opportunity--especially as was mentioned in this thread with home-based biz--then I find that off-putting and immediately delete it.

But if the product is truly something that I can use in my own scenario, something that is well priced, without necessarliy pitching me on a different primary business venture, then I'm opening to reading a few emails here and there, checking out a website, etc.

I don't have any experience with concrete-type "freebies", so I have no idea whether those are effective or not.

Hope that helps.

Private Reply to Chris Dierkes

Oct 19, 2005 1:59 amre: Do Freebies really work?#

Jim Yates
Deepak, This freebie sold me on the product.

Jim Yates

http://kc5mzr.com

Private Reply to Jim Yates

Oct 20, 2005 1:21 amre: re: Do Freebies really work?#

Patrick Fultz
The most powerful word in marketing is...

"FREE"

I'm in direct marketing, worked for large agencies (J. Walter Thompson Direct, Grey Direct) and have had my own agency for over 20 years. I've developed and designed over 100 control packages for companies like Columbia House, Disney, American Express, Musical Hertitage Society and Chase. I can say one thing from all this experience.

Everyone of us looks at everything with this thought in our subconscious...

"What's in it for Me"

Now, all the comments about it has to have worth or perceived value are true. But that perceived value only has to apply to the people with interest or to put it correctly, our target audiance. Direct marketers for years have know this. They only look for a 1-2% response rate in most cases (although they'd love more). And, this is not the close rate. They'll close a percentage of those.

Freebies or Freemiums are also a great way to collect prospect names as shown by Connie Nolter above.

So yes Freebies work. They need to be relevant (I'm not getting a vegetarian to buy my steaks) and have a good perceived value (I don't want a person to be let down, they'll feel the same will happen if they buy).

Think long and hard about what the freebie is. Test many freebies, you never know what will spark your prospects. And last but not least, remember we are in the marketing business and not the normal consumer. Test, test, test and test again.

Freemiums can get old and stale and need to be refreshed. But they DO work.

Patrick
www.easyadmaker.com

Private Reply to Patrick Fultz

Nov 21, 2005 4:42 amre: Do Freebies really work?#

Lamar Morgan 954-603-7901

Deepak,

As you have heard from a lot of folks, "freebies do work." You have also heard that some folks are turned off by them as well. However, it needs to be noted that when it comes to freebies you are not just talking about free newsletters or ebooks. There are a wide range of freebies out there on the Internet. For example, a podcast is a freebie.

From a business perspective, what's important about any kind of freebie is whether or not it adds value to your life or business. Was it worth experiencing? Can you benefit from it in any way? If the answer is "Yes," you may want to pursue a business relationship with the party that introduced you. If the answer is "No," then you have learned of one business relationship you do not want to pursue.

Make no mistake, there is a lot you can learn form freebies. In fact, I have one which I think couild postively impact your life. It is called "CDMM's Power Networking Disk." It is actually just a simple little PDF file with links. If you are interested, just ask for it via this link - CDMM.

Lamar Morgan
CDMM
Creating a buzz for business in the boardroom

Private Reply to Lamar Morgan 954-603-7901

Nov 21, 2005 4:19 pmre: Do Freebies really work?#

Jill Hurst-Wahl
I think it depends on how it is done. What I do, which may not be what you're thinking of, is that I will post my presentations on my web site for those who at the presentation and other interested parties. That gives them somethng free from me and also hopefully encourages them to peruse my web site. What I do is tell people the URL when I give the presentation. I also will announce it in my blog. I used to put links on my site's homepage, but stopped doing that when I did a major redesign (and put more emphasis in announcing things in my blog).

Jill

http://www.HurstAssociates.com
http://hurstassociates.blogspot.com

Private Reply to Jill Hurst-Wahl

Nov 21, 2005 4:35 pmre: Do Freebies really work?#

Jill Hurst-Wahl
I posted a reply that didn't seem to "take."

What I give away are copies of presentations, especially when the host organization doesn't want a lot of handouts. I'll tell people the URL for the presentation and encourage them to go to my web site. That gets them TO my web site!

I also will post info about presentations in my blog and give people the link there. Again, that gets people TO my web site.

Jill

Private Reply to Jill Hurst-Wahl

Nov 21, 2005 6:20 pmre: re: Do Freebies really work?#

Deepak Morris
Thank you, all, for your input and ideas.

Based on things I've picked up from your posts, here's what I've done:

My "product" is an online voice development course. The freebie I'm offering is the entire courseware in PDF format, which is delivered through a Yahoo e-group as soon as someone joins up. I've made joining very easy. The person simply clicks the button on my website, whereupon they are taken to the Yahoo Group homepage and may read more about how I shall not be selling their email address, how they may unsubscribe immediately upon receiving the e-book, etc.

I make sure they know I haven't hidden a single thing about my course from them. All the exercises, all the input, everything is in the e-book.

I charge only if they desire email interaction and perhaps a chat on Yahoo IM or by phone with me.

The e-book was developed "live", with the help of online testers who gave me feedback through the course, all of who agree that it has value.

I'm not actively promoting the course yet, because I still have to work out some kinks in payment protocols, etc. (People seem to prefer to pay through PayPal and I can't offer that because of India's tight control on Rupee convertibility).

I have about seven people who have joined the e-group, though none have taken the next step. I'm not worried about that. I'm in no hurry.

If I read your suggestions correctly, what I need to do now is establish a rapport with the ones who've joined. Since I promoted the course in a writers' group, those who've joined are primarily writers and poets.

So I've begun to post messages about how one may link one's writing with one's voice. Creating an audio book, for example, or recording small pieces and taking a micro-payment approach to distributing them.

Am I on the right track?

I'd also really appreciate it if some of you took the time to evaluate the way I've set up the joining procedure. It all starts from the "Golden Voice" page on my website:

http://www.freewebs.com/deepakmorris/getagoldenvoice.htm

I stress, I'm still experimenting with the setup. I know that if I want to project a professional image, the Yahoo group isn't going to work, nor is the freewebs tag. I'll be moving to a paid model of newsletters and website once I know I've set things up correctly and then I'll start actively promoting the course.

Thank you all for your generosity,
Deepak

Private Reply to Deepak Morris

Dec 24, 2005 2:44 amre: re: re: Do Freebies really work?#

John Williams
Deepak, I'm a bit late coming to this topic but 2 parts of it are relevant to where I am right now.
I'm a magician as well as a writer, and I'm looking to do some on-line presentations in 2006. I'll look at your course as soon as time permits. Anything which helps me improve my voice would be good - I realise not even the best course coule ever get me to where I could sing.
Regarding the freebies question, I know that they have worked very well for some people - I've spent money with them and recommended them to other potential customers.
And, this Christmas season, I've signed up to provide some freebies through one of the most well-known promotions.
My focus is to rebuild my list and, of course, to find people who want to buy my products.
I'll let you know how it works out, with due regard to the Network's rules.
At this early stage (my offer went live about 11 hours ago) there have been a lot of people registering with my site and downloading the goodies.
I did not just pick this promotion with the proverbial pin. I've been as thoroughly as possible through the back area of this promotion and looked closely at the others too. I am very happy with the support, rules and follow-ups with this one.
I also thought a lot about what to offer. It wasn't just whatever was at the top of the freebie pile. I would have liked to write something new for the promotion but, due to health issues - since almost completely resolved - and the computer problems, that was out of the question this year.

Private Reply to John Williams

Jan 07, 2006 10:12 amre: Do Freebies really work?#

John Williams
This is the promised follow-up to my earlier comment about freebies after being in a major "give-away" promotion on the Net for the first time.
I've been a consumer in some of these promotions before - part of the reason has been to check if anyone's trying to give away my ebooks, but I've also got some useful stuff and I'm still signed up with several of the providers' newsletters.
I feel I chose the right promotion - everything organised really well and vetted before acceptance. Great hand-holding which I needed though I've been on the Net for years.
I thought about what to provide and feel that it was very well received. Can't see the point to offering 'slum' but have seen people try that way.
This promotion finishes midnight on the eighth of January, so I won't know how well it went for me until, say, late February when I see how many sign-ups are still getting and, hopefully, responding to the newsletter.
But, I'm confident that the effort and expense will be worthwhile. Certainly, I've learnt some new stuff about Net marketing and people's expectations as well as re-learning some stuff I thought I knew but didn't take into account when setting up for this promotion.

Private Reply to John Williams

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