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Profit Boosting Tip - Offer something for free

In most businesses there is something that costs the customer a fair amount of money, but costs you very little to produce. This can be a great start for a free offer. There are countless examples of this in business – free samples in coffee shops, taster days for training companies, free “lite” versions of game apps and free software and music downloads. There’s even a new buzz term for it – “freeconomics”. Why is it so popular? Because free offers have several advantages:

  • They allow customers to build a level of trust with you;
  • They encourage them to sample products and services they may not otherwise buy;
  • They give you customer information that you can use in the future and give you longer to build a relationship;
  • They make customers feel that they are getting something extra, especially if bundled as an extra bonus, which builds loyalty;
  • They allow you to engage with customers in unusual ways to create hype, launch products and get customer quotes.

Try these ideas to start with:

  • Find something in your business that costs little for you to generate but will have a high perceived value. This might be a high margin product or some information or expertise.
  • Use the free offer as an extra reward for loyal customers, especially at the points when you know customers are more likely to leave you.
  • Use a free offer to launch a new product or service and get some positive PR going.
  • Offer something free that you have too much of, when people purchase another product. The added extra bonus costs you little but will increase customer satisfaction.
  • Offer some initial analysis for free if you provide services, to demonstrate your skills and build the relationship. 
  • Offer free products and services in return for “testimonials” for the first 100 users.
  • Release a member of staff to help your customer’s business out, and also get the inside story on them at the same time.
  • Offer free items as part of a competition – just make sure that people think there is a reasonable chance of winning.

Thinking about what you can offer for free is a great way of getting customers and prospects through the door. Never think about what you could have made if you had sold all those things for full price – it never would have happened. And if you put out a free offer and leads come and you still don't sell?  In that case you know you have another issue to work on in your business - but at least you won't be short of leads.

Take action now – test a free offer in your business and click on the link below for more profit boosting tips.

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