So many people wonder how companies can afford to give away freebies. I received 250
business cards for free the other day and my friends couldn't understand how I got so much free stuff. I said, "You just fill out a survey and they send you something." But there's much more to it than that. One of the main reasons companies give out free samples is to give customers an incentive to go to their site. Often times, users will buy additional items if they're on sale. Giving out freebies is not only a cost effective way of promotion but also can be a viral marketing strategy since most people who request the freebie tell their friends about it, who tell their friends about it, etc.
Still, giving away free offers can create a major dent in the company's budget. Some
businesses offset the price of the freebie by having sponsors. There are many ways to go about this. Many have co-registration checkmarks on the form, or request the person's e-mail address to keep them updated on new products.
It's important to keep the cost of the freebies down even if there are sponsors.
Generally, freebies are .50 cents to a dollar, but it depends on the kind of arrangement each company has with the post service. Another big reason companies offer free samples is to get return customers. Giving away freebies is a great way to generate trial and awareness. Obviously, if a user receives a product in the mail, tries it, and likes it, they're going to probably buy it next time they see it in the grocery store or online.
Normally companies expect 10 percent of consumers to redeem a coupon. For freebies,
the request or return rate is often higher. When asked about the kind of feedback
they get, some companies said they generally see an increase in the response rate from 5 to 50 percent. Some days there are lots of requests, and other days it's steady. It all depends on who finds out bout the freebie.
If the publisher of a large newsletter hears about an offer, a company can expect more requests than usual if they publish the offer in their newsletter. There are also other reasons or ways of offering freebies. One company, Girl Power! (health.org/gpower) is a national education campaign that was developed and supported by the U.S. Department of Health and Human Services. They are able to give free materials because the government recognizes that those items are good for the health of the people in America. There are a lot of other U.S. Government organizations that provide free materials.
Lastly, most companies that give away freebies don't anticipate the high response
rate that they receive; therefore a lot of times they can't afford to give away all of their freebies. Freebie hunters can help this by only requesting freebies they are really interested in. Also, freebie hunters use unethical practices such as giving out wrong e-mail addresses, or other information which is what helps the marketer afford to give out freebies. If you don't want to be added to someone's mailing list, then don't request the freebie.
About the Author
Nicole Seekely is the publisher of The Panda Pages weekly e-zine. You can contact her at gymaholic7@pandapages.f2s.com Also, visit her website at http://www.pandapages.f2s.com for freebies, cool sites, and more. To
subscribe to her e-zine send an e-mail to gymaholic7@pandapages.f2s.co
