Offering a service or product for FREE as a promotion for a shortwhile?

We all know it's a tough old competitive world out there...

What is your opinion on offering a product or service for free for a short while in the hope to get noticed and for brand awareness?

My personal opinion is that it comes across a bit desperate but it certainly would increase attention to get noticed, who doesn't like FREE after all?

Of course it does come down to what the product/ service, the industry and the competition but I'm talking generally here.
 
B

british steve

We run a wifi hotspot company, in the past we have run promotions offering a 90 day money back guarantee and only bill the customer for the equipment once the 90 days are up. We have probably pulled in over 1,000 hotspot venues offering this service - for us it has worked wonders! If things are ever quiet we run another free trial period offer as a way of bringing in new custom. Most genuine customers (over 95%) keep the service once the free trial period is up although to be honest we have lost a few wifi access points with customers not returning them. We have very strict terms and conditions to stop potential customers taking the P
 
Upvote 0
You need to be careful not to devalue your product. For some products it's a good way to increase awareness/get noticed but you need to take care that people don't simply see the product as being of no (or low) worth either.
 
Upvote 0

Alan

Free Member
  • Aug 16, 2011
    7,089
    1,974
    promotions offering a 90 day money back guarantee and only bill the customer for the equipment once the 90 days are up.
    That is subtly different, as it isn't really free if I understand what you are saying. It is reducing the risk for the purchaser in choosing you, it says you are confident in your products and services.

    In that case, you are attracting customer who know they will have to pay, eventually (or go through the pain of finding another supplier, which they will only do if they find out you are much more expensive, or your support isn't good).

    Offering services totally for free, without a potential hook of a longer term commercial relationship is done, but mainly for portfolio building and work experience, in my opinion. Of course if you did a good job, there might be a chance of getting follow on work, but depending in what field you are in it can work, or just attract 'freeloaders'.

    Offering services that have a potential hook makes more sense, like doing a free mini-review of something that you offer as a full service.
     
    Last edited:
    Upvote 0
    B

    british steve

    What is your opinion on offering a product or service for free for a short while in the hope to get noticed and for brand awareness?

    That is subtly different, as it isn't really free if I understand what you are saying. It is reducing the risk for the purchaser in choosing you, it says you are confident in your products and services

    The original OP asked about short term offers to get noticed and for brand awareness. I thought my answer was spot on? :)
     
    Upvote 0

    Saltt

    Free Member
    Sep 23, 2012
    5
    1
    'Free' is only one form of offer in the marketer's handbook.

    In a competitive environment, the prospect will ask 'why should I choose you?'. So if you really see value and believe in your own product or service, it's never a bad idea to let people have a try it out first. By doing that, it's not about you telling them how great you are compared to everybody else, they can experience it themselves. Remember in many cases, the prospect would never have even heard of you or your product.

    Offers do generally work because it appeals to a person greed. 'Free' may not necessarily be to right offer for all businesses concerned but there are many others too, like - price offer, gift for purchase, discount, money back guarantee etc etc.

    There's no denying it works - so I don't see anything wrong with 'Free' offers at all. In fact a client of mine was also worried about the word 'Free' cheapening the brand, so we decided to use the word 'Complimentary' instead. It still worked!
     
    Upvote 0
    B

    Billmccallum

    I'm in favour of FREE TO TRY offers for services, lets a potential customer have some experience of the service without obligation, or a free sample of a product where the product is a consumable.
     
    Upvote 0

    Scott-Copywriter

    Free Member
    May 11, 2006
    9,605
    2,673
    It can work, but you have to factor in two important points:

    1). The potential to devalue your product/service
    2). The return on investment (ROI)

    If you give anything aware for free, you must remain conscious of what is left for the prospect to buy. Give away too much for free and they may get everything they need from that freebie, so they no longer have a reason to buy any paid services/products.

    As for the ROI, Platform showcases a good example! Like any form of marketing, giving away freebies often cuts into your profit, so the resulting increase in sales due to the free offers must return that expense plus more for a positive ROI.
     
    Upvote 0
    It's certainly not suitable with what we do really.

    We invite friends & families to create Tributes in memory and these are displayed at the funeral like funeral flowers. Then afterwards the family keeps the Tributes in our Commemorative Book if they wish.

    It would de-value our service if it was free for a while so not really relevant.

    I started the thread if regard to offering the Commemorative Book for free for a while or with a heavy promotion to get families more interested. Again probably not suitable.
     
    Upvote 0
    M

    mattleescott

    You could give it away for free foreever.

    Free offers low the barrier to entry and will get more people in faster, but you'll also get price shoppers who arent the best customers/clients to have.

    The question is...

    Are there repeat purchases?

    If yes then make sure you service is 'unbelieveable'
    You have a referral system in place
    You collect the contact details of anyone that comes wthin a mile of your business
    You provide free valuable information to them on a regular basis

    If you dont have repeat purchases...the what else could I offer that would help my customer further?

    How can I get them to buy more regularly?

    Matt
     
    Upvote 0

    Ashley_Price

    Free Member
    Business Listing
    As others have said, it does depend on the business, but generally, I would say don't do it. Having said that, we did offer a free one-week trial when we were doing call answering, but as that was a service, people were more likely to pay once they saw the benefits of it.

    As APA Secretarial, I did offer to do a couple of typing jobs for free near the beginning, but what usually happens is the person uses you for the free bit and then you never see them again.

    There is a story (I don't know how true it is) of a lady who wanted her book typed. To check the firm's quality of work, she insisted on them typing a chapter for free. They did this and then never heard from her again. It was supposedly the case that she got a different chapter typed by a different firm, so she got the booked typed for free.

    Nowadays, I wouldn't offer things for free, unless there is a very good chance of the ROI (as in the free trial with call answering). As APA we won't do free typing, and I wouldn't coach someone for free either.

    Look at it this way, would you really offer to replace someone's doors for free, in the hope they'll then get you to do the windows, fascias and soffits? Probably not, because of the overheads involved. Well, no matter what your costs (whether it's pennies or hundreds of pounds) the principle is the same.

    Another thing to be careful of is never purchase any sort of hardware or machinery, specific to one client unless they pay for it up front!

    We had a client that we used to send out several thousand letters every few months. To keep the costs down he used to provide the labels, however, these were on tractor-feed paper and didn't go through a laser printer very easily and the labels would get screwed up in the printer, sometimes occasionally even leading to having to purchase a new drum unit. After the third time he hired us, I mentioned that it would be much easier and quicker if we purchased a tractor-feed printer (there was an old dot matrix one that was only about £150, would have fitted the bill perfectly). Much to my surprise, there was no argument or discussion from the client, he simply said to go ahead. I added that obviously, as we were purchasing it especially for his job and would have no other need for it, we would have to pass the costs onto him. Again, he said no problem. I was a little taken aback and so, a few days later, I sent him an invoice for the cost of the printer. We never heard from him again!

    Thankfully, I hadn't actually purchased it, something in the way he was too happy to accept the cost struck me as odd, especially as he was trying to keep the costs down elsewhere - like supplying the labels. So I was waiting for him to pay us BEFORE I got the printer (I hadn't told him this).
     
    Last edited:
    Upvote 0

    HFE Signs

    Business Member
  • Business Listing
    It very much depends what you want to give away, but one thing for sure if you give it away once, no one will want to pay for it afterwards.. so my advice would be only give away a specific promotional item / service or something that you don't wish to sell in the future.. or give away something that is highly likely to lead to higher sales.. good luck
     
    Last edited:
    Upvote 0

    KHawey

    Free Member
    Jan 31, 2013
    3
    0
    Simple examples, but gives you something to think about:

    Free - now if you are going to give away something free you need to be 100% sure that your product is worth paying for beyond the allocated 'free' time, this is where as a company you have to prove yourself. For example, I recently had a LoveFilm free 3 month trial, it was terrible, am I going to pay? No, I cancelled it straight away. There's the issue with giving something away.

    Free up to a point - this is the most interesting one. I think this is the real business driver, it gives an insight into your product but then leaves the customer wanting more. For example, I downloaded a running app which is on the basis of a 10 week programme, I didn't realise but it takes you to 3 weeks and then you can 'upgrade' to get the full package. Because I have an invested interest in the product and like how it works I will be upgrading.
     
    Upvote 0
    You need to be careful not to devalue your product. For some products it's a good way to increase awareness/get noticed but you need to take care that people don't simply see the product as being of no (or low) worth either.

    Lee is right.

    And there are some other things I'd keep in mind too.

    Free attracts a certain type of customer. Are you sure they are the ones who will generate most profit long term for your business?

    Smart businesses use promotions to add value not discount (and risk devaluing).

    And think about cash flow. Smart promotions get money up front and add value later on.

    e.g. pay for three months up front and receive <another product or service?> free.

    Better still make people earn the right to claim the promotion. e.g. we have a limited offer for members of UKBF. Or, because you have spent over £100 on <something> you qualify for <something else>

    Why not link in with another business and offer an added value promotion to their customers? You need to find the right fit, but, if you do, you'll get endorsement value too.

    And always have a cut off date to communicate scarcity.

    Good luck!
     
    Upvote 0

    Latest Articles

    Join UK Business Forums for free business advice