In the world of marketing and advertising, the word “free” is used frequently. In some cases, even overused. Honestly, we’re all guilty of it. What exactly does the word free mean to your customer and what does it mean for your company?
There are many factors to keep in mind when promoting “free” to your consumers. Here are a few points to keep in mind:
Eliminate the barrier of entry
Using the word “free” in marketing or advertising for a product or service lowers the barrier of entry for the consumer to your brand. You often see companies offer free trials with the same goal in mind. The trial periods is a way to grab the attention of those consumers who want to try your product or service and give them a reason to choose you over your competitors. There’s no shame in offering a free trial or free sample to kick start your goals.
Provide value for a price
Understand the value of your product and service before you start marketing to your customers. Whether it’s your brand, a new product, or a service you are providing, communicate the value and benefit from the very beginning. Educate consumers and customers about how your business can help individuals make their life easier. Why does the customer need your product or service? For example, if you’re providing a technology to another small businesses that will boost efficiency and increase sales, you should focus on educating those business owners on the time and money you’ll save them.
Focus on what makes you different
In the long-run, your competitive advantage is what will make you stand out among all the “free” offers in your industry. Understand your competitive advantage, communicate your value, and educate your community on how you can help business owners reach their goal. Do your research. Understand what your competitors are offering, how they are marketing the offer, and the intricate details. Sell on the difference and don’t be afraid to test new tactics to get potential customers using and ultimately paying for your product or service.
There is a fine line to avoid when using “free” in product development and advertising. Make sure you find the happy medium of disintegrating your brand and growing your business.
“You get a car, she gets a car, everybody gets a car!” — Oprah Winfrey
Oprah once gifted 300 audience members of her show a new Pontiac G-6 Sedan.
You might wonder why and how any business would give away such an expensive free gift to so many people.
You also might wonder what the financials looked like, to pay for something like this?
And, what kind of a return did this marketing campaign bring Oprah, if any.
Free is often used in marketing in order to gain a new customer. Giving away a free product or service provides a competitive advantage in a crowded marketplace.
The purpose of this tutorial is to explore how and when to use “freebies” in your advertising and marketing activities.
Of course, the use of giveaways can be tricky for many reasons. Oftentimes the budget is the top concern, but frequently the biggest question to ask first is, “Why should I give something free in my marketing campaign?”
Can You Use the Word Free in Advertising?
Yes, you can!
And if you are not, you could be leaving truckloads of sales and profits on the table. You need to figure out a way to use the word free in your marketing because it can do wonders for your conversion rates.
In fact, one company that has perfected freebies in advertising is Ben & Jerry’s, the famous ice cream company that holds “free cone day” where consumers get free ice cream.
But why do you think this campaign has been such a success?
The word free is one of the most powerful words in business primarily because of the emotional reaction it activates. People love free gifts because:
- Free offers a perception of zero to low risks
- Free implies a great bargain
- Free removes the barrier to entry, e.g., trial
- It creates an added value to a product/service
Four ways companies often include the word free in their advertising include:
- Free Gifts
- Free shipping
- Free trial
- Buy one get one free
What Is the Meaning of “Free” in Business?
In business, free means giving products and/or services to consumers without expecting payment in return.
For example, if you are offering a facial treatment service, you could opt to give clients free at-home sheet masks. Or, if you just started a local sandwich shop, you could blanket the surrounding area of people in your target market with a free coupon valid for a free sandwich.
In both of these cases, the businesses are using “free” in their marketing strategies. The goal, of course, is to compel a new customer who enjoyed their free product(s) so much that they are now inclined to come back and purchase.
This strategy is a function of the psychological principle called the Law of Reciprocity, which says that when people receive something they feel compelled to return the favor. This is another huge reason why every company should find a way to use free in their marketing strategies.
Freebies in business are not always as direct. For instance, in some cases, a customer must pay for a service to get a free product. In this case, the free product or service acts as an incentive to make a purchase.
Both strategies can work very well.
5 Innovative Ways to Use Freebies as a Marketing Strategy
1. In-app purchases
This commonly used strategy involves providing free basic features for service and requiring users to pay for a premium version to access add-on features.
This is a fantastic method to quickly build a list of potential paying customers at the free level, and showing the value of becoming a paying customer. This tactic’s success is because it attracts a broad customer base. And if your product is high-quality and meets users’ desires, many will likely become paying customers. Companies that use this strategy include iPhone, Skype, and Adobe.
If your direct competitors use this strategy, consider matching the same offer to your customers. It is crucial to undertake market research to ensure that this move will increase profits in the long term. Alternatively, you could employ a Merger and Acquisition. For instance, when Intuit, a software company, realized they couldn’t match Mint.com’s services, they bought the company.
2. Complementary marketing
If you decide to offer free products, presenting different items that complement your company’s offerings would be a smart move.
For instance, if you run an exclusive farmer’s market event, you could choose to offer free tickets and then sell complimentary products and services. Once customers are in the venue, you could have stands that sell food items from spices to meal prep, sanitation products and related travel packages. The opportunities are virtually limitless with this method.
3. Seek payment from third parties
Another tried-and-true tactic that includes freebies involves working with third parties.
Let’s say you run a successful blog, meaning you have a large audience who take action based on your recommendations. In this case, you can decide to make your posts accessible but charge third parties who wish to advertise using your blog.
4. Buy One Get One Free (BOGO)
BOGO is perhaps the oldest trick in the marketing book.
It involves offering a free product only after a customer purchases one. You probably have seen this in grocery stores and your favorite beauty shops.
For instance, in 2021, Bath & Body Works ran a thanksgiving BOGO of buy 3 get 3 free, allowing users to mix and match products rather than get a replica of the purchased item.
This tactic can help boost sales by offering customers a chance to try out new products for free but only after they’ve bought from you.
5. Decoy
Another way to use free in marketing is by using decoy pricing.
Let’s say you run a bakery and offer juices in different sizes. The small size (250ml) could be $6, while the larger one (450ml) is $6.50. A customer getting the larger size for only fifty cents more seems like they are getting an additional 150ml practically for free.
The decoy tactic nudges users to buy items by using asymmetry.
Test — Test — Test Using Free in your marketing and advertising
Using freebies in marketing can be a massive success or a marketing miss.
While this tactic attracts a wider user base to your business, it may not always result in purchases. Therefore, you must evaluate this approach making sure you aren’t using it as a crutch.
Your products and services must appear valuable to consumers to nudge them into getting your free products.
Remember, brand reputation matters, and if your business is relatively new, giving freebies may end up hurting your company image. Ultimately your goal is to increase your bottom line. So, employ free in your marketing after you crunch the numbers and it makes sense.
References
- https://www.oprah.com/oprahshow/oprahs-entire-audience-are-surprised-with-new-cars-video
- https://www.benjerry.com/scoop-shops/free-cone-day
- https://hbr.org/2011/06/competing-against-free
- https://www.10news.com/bath-body-works-thanksgiving-week-sale-buy-3-get-3-free-entire-store/
It’s been called the most powerful word in the history of marketing, as powerful today as it has ever been.
It’s been called the most overused and overrated word in the history of marketing, nothing more than a gimmick used to seduce and often deceive the consumer.
Many will say “free” works because it triggers a strong emotional response. It immediately creates the perception that no risk is involved. If the product or service sucks, at least you didn’t pay for it.
Others will say “free” doesn’t work because the emotional response it triggers isn’t always positive. People may think there’s a catch. A hidden risk. Sure, you say it’s free, but there must be some fine print somewhere. People may also think something offered for free has little or no value. It cheapens the product.
In the specific case of email marketing, MailChimp recommends avoiding the word “free” in subject lines because it triggers spam filters. However, HubSpot has published the results of A/B tests that showed the word “free” had no effect on email deliverability.
Even the spam filters can’t agree about whether “free” is a good or bad thing.
What Does “Free” Really Mean?
By definition, in the context of marketing, something is free if it doesn’t require a payment. But for many of us, the definition isn’t black and white.
If you’re offering a free set of earbuds with the purchase of a new smartphone, one could reasonably say they’re not really free. They have to make a purchase, and they’re paying for the smartphone and the earbuds.
If you’re offering a free trial of a service, does it automatically roll into a paid subscription? If you sign up to view a free demo or receive a free quote, will you be added to mailing lists and receive an endless barrage of sales pitches?
In other words, the ensuing inconvenience and aggravation aren’t free in the eyes of many. Time is money, right?
A Lindt Truffle or a Hershey Kiss?
In his book Predictably Irrational, Dan Ariely tested the power of the word “free” when offering people a choice between a Lindt truffle and a Hershey Kiss.
When the Lindt truffle was priced at 15 cents and the Hershey Kiss was priced at 1 cent, 73 percent of study participants chose the truffle.
When a different group was offered these products for a penny less – the Lindt truffle for 14 cents and the Hershey Kiss for free – 69 percent chose the Hershey Kiss.
This study tells us that the word “free” can motivate people to buy differently, even when the value and quality of the product hasn’t changed.
Ariely also points out that people hate to lose out on things and instinctively reach for low-hanging fruit when it presents no risk and requires no effort.
While this exercise does speak to the power of the word “free,” it doesn’t mean everyone should run out and use it in their marketing.
Will “free” attract the kind of customers you want?
The same general rule that applies to most widely used marketing tactics applies to the use of the word “free.” It can be helpful when used intelligently and in the right context.
Think about not only how the word will be perceived, but also the kinds of customers it will attract.
“Free” might make sense as an incentive in a direct response advertising campaign when the goal is to sell as much stuff as possible as quickly as possible.
“Free” probably won’t make sense if you’re offering a professional service. For example, lawyers don’t want to be viewed as a commodity. They don’t want to attract discount shoppers. They want to build long-term, profitable relationships and gain referrals.
In some heavily regulated industries, the Federal Trade Commission offers long, complicated guidelines for use of the word “free” in marketing. Ignore these guidelines at your own risk.
“Free” Works Best When Surrounded by Good Content
Too many marketers use “free” as a crutch. Either they can’t come up with something compelling to say about their product or service, or they don’t want to put any effort into their marketing.
It kind of reminds me of the old days of search. The message didn’t matter much as long as you stuffed your content with keywords.
“Free” can add value to your message and your offer, but it can’t manufacture value out of thin air.
In many cases, “free” is a throw away word, almost like a marketing cliché that business owners and marketers feel must be included in their marketing.
For example, they offer free estimates or a free consultation even though no other business in their category charges for an estimate or consultation. In that case, “free” has no value and isn’t a selling point.
Even if you use “free” intelligently, you still need to understand your audience. You still need a strong headline that resonates with your audience. You still need to show how your product or service solves a problem, fills a need or makes their lives better. You still need a call-to-action that tells them exactly what you want them to do next.
In other words, you still need to do the work.
My Take on the Word “Free”
I’m in the red flag camp.
Maybe I’m a cynic, but unless “free” is coming from a person or company I know and trust, I’ve been conditioned to believe that there’s always a catch. A hidden charge or obligation. A flood of solicitations in my future.
I also don’t use “free” in my marketing. My proposals, consultations, and subscriptions to the my blog are free, but I don’t describe them that way. In this case, “free” doesn’t add value for some of the reasons mentioned previously.
As a provider of a professional service, I don’t do free. Outside of the occasional pro bono project, my business is for-profit.
I’ll offer high-level feedback on a potential client’s existing content for free, but in-depth analysis is something I charge for.
I’ve kicked around the idea of offering free stuff, but I always come back to the same line of thinking.
There’s value to that. So I should charge for that.
But that’s the nature of my business, and my reasoning may not be valid for your business.
Do you use the word “free” in your marketing? In what context? Is it working?
What’s your reaction when you see “free” in marketing directed at you?
Marketers use the word “free” so often that it has nearly lost its power.
Free is a word that has enormous psychological appeal. But when it’s overused or used incorrectly, it can ruin your marketing efforts.
Here’s how to use the word free for conversion power, marketing advantage, and increased revenue.
And not look like an idiot doing it.
When “Free” Is Dangerous.
Many of us grew up hearing the message, “There’s no such thing as a free lunch.”
On the one hand, free is a word with enormous psychological potency.
Gregory Ciotti listed free as one of his “5 Most Persuasive Words in the English Language.”
As I’ll explain below, you may attract people simply based on free, but those people might not have value as customers.
The marketing success of free products is built on the psychological instinct of reciprocity.
Dan Ariely, author of Predictably Irrational, explains reciprocity:
Reciprocity is a very, very strong instinct. If somebody does something for you, you really feel a rather surprisingly strong obligation to do something back for them.
How strong is this reciprocity? Just ask Costco. They hand out free samples to thousands of customers and see their sales skyrocket. While there may be some causation/correlation questions here, many observers view Costco’s marketing success as reciprocity in action.
Research suggests that there is a subconscious norm at play here that urges samplers to purchase, a kind of social pressure.
Average Percentage Increase in Sales After Product Samples in the Past Year, by Product Type (Source)
The relationship between Costco and its customers is so compelling that people actually go to Costco to eat lunch for free.
Image Source
This reciprocity can easily backfire, however. As Ariely points out, the reciprocity instinct is so strong that it sometimes crosses the line into sensations of guilt.
Guilt is a negative emotion, and people strongly attempt to avoid guilt. They do so by rejecting anything that may subject them to this feeling.
You have no way of knowing if an individual is going to respond this way, but it is important to realize how powerful free is, and how it can hinder your marketing rather than advance it.
So, let’s talk about how to use free in the right way.
Explain Why It’s Free.
If something is free, it must be free for a good reason.
People aren’t stupid.
Researchers estimate that we communicate around 5,000 marketing messages per day. People have pretty good BS meters, and they can sniff out the artificiality in most marketing messages.
Free is one of the words that sounds the internal ad radar alert. People ask, Why? What’s the catch? What are you trying to sell me? There’s no such thing as a free lunch. You can’t get something for nothing!
It’s a natural human reaction.
Thus, if you are offering something for free, explain why it’s free.
It can’t hurt to explain.
- You will lose nothing if a customer isn’t ready to convert on your free offer anyway. The explanation won’t help them either way.
- You will gain the customer if he or she is skeptical, reads your explanation, and then decides to convert.
- The explanation is a strong persuasive technique that amplifies the word free.
- Your explanation of free adds value.
- Your explanation of free lends credibility to your brand.
- Your explanation of free can help relieve the customer’s concern.
- Your explanation of free can disarm the user’s skepticism.
- Your explanation of free can show the customer that you care.
- Your explanation of free demonstrates your transparency as a business/brand.
Sometimes, the reason you’re offering something for free is so obvious that you don’t even need to mention it.
Example? Subscriptions to newsletters. Most people realize why your newsletter or ebook is free. It’s because they are opening themselves up to your marketing messages. That’s the quid pro quo.
Other times, you may need to explain yourself.
Here are some examples of businesses that offer free services while also providing a helpful explanation.
StatCounter uses a whole page and 590 words to explain why the service is free.
Notice that their explanation is clear and persuasive.
We offer a truly exceptional free service, because we want to help you grow. And as you grow, and as your needs grow, we hope you’ll upgrade. We don’t impose an upgrade on you. You can use it for free for as long as you like. The only catch is if you start to get over 9,000 page loads each day you are outside what we can sustain as a free business model and we will then ask you to either remove the code or upgrade. It’s as simple as that!
They explain the “catch” behind the “free,” because they know people are wondering.
WordPress is a free CMS.
This may baffle some customers, so WordPress works to explain why it’s free.
The lengthy explanation by WPBeginner.com can dispel the skepticism that some users may have towards such a high-value free service.
Spiceworks is another business that provides a free service. Their explanation asks, “What’s the catch?” and explains in clear terms how they can afford to be and remain free.
Quartzy’s business model operates on a free basis, and they provide a clear explanation of the reason.
Here’s the bottom line. If it’s free, you need to explain why.
If you don’t, skeptical users will wonder, question, and remain suspicious of your product or service.
It’s best to put their concerns to rest.
Provide “Free” As An Option Alongside Paid Services.
In the SaaS world, free is a big deal. Freemium models and free trials are part of the marketing strategy for many SaaS businesses.
It’s risky to provide “free” software unless you validate it by providing a paid version as well.
When you offer a free solution alongside a paid solution, you are making a transparent distinction between the two. Users who are paying attention will understand that they are choosing a free version that will provide limited functionality and capability. They understand and accept this.
Instead of using free as a gimmicky come-on, you are using free as a legitimate method of using the SaaS.
The goal of free is to convert free users into paying customers.
Notice how Buffer implements this strategy. They don’t shy away from using the word free. It’s there — big and beautiful.
Many users will convert on the free account simply because of its zero-cost price point.
These users know, however, that they are receiving a product that contains quality and functionality, but it’s limited.
In fact, Buffer clearly shows all the different features that free accounts vs. paid accounts will get.
Asana is a project management software, and you can start with a free account.
This landing page is simple, and they use the word free twice.
Their pricing page also trumpets the free version of their product.
Users assume that they are receiving a high-quality product even though it’s free. The reason they feel this way is because Asana clearly explains what they receive and the limits that are set upon free accounts (“Free for teams up to 15”).
MailChimp’s approach is similar. They provide free accounts as long as the limit is 2,000 subscribers and 12,000 emails per month.
Users who want to increase their usage pay $10/month.
The clear explanation of free, alongside an offer for upgrades, shows users that they are receiving a commensurate level of value with a free account.
Free trials and free accounts are a great way to offer your SaaS to users. It’s important for users to understand, however, that they can receive more value with a paid account.
The point of informing users is, of course, to convert them into paying customers. But that’s not all. You want to assert your viability as a worthy, valuable, and high-quality product.
“Free” Is A High-Competition SEO Keyword.
Using the word “free” in your content has some SEO risks and benefits.
First, “free” has a lot of competition as a keyword.
Tens of millions of people search for longtail keywords with the word free, making it very difficult to rank.
Here’s an example of a “free” keyword. Obviously, I’m using a high-traffic head term, but this gives an example of the types of content that rank for the word.
The websites above are mostly .org directories. Google has made efforts not to reward sites that are simply looking for a bit of marketing power. Instead, they are ranking the sites that have proven value.
Trying to optimize your page for free simply to gain some marketing power is unwise, due to the intense competition you’re up against and the negligible value that you actually gain in ranking for the keyword.
On the other hand, free may be a legitimate word for users. In other words, when users see the word free in your content, title, or heading, they may be attracted to it and want to find out more.
The important thing to keep in mind about “free” and SEO is that ranking will be extremely difficult.
I do not recommend that you pour a lot of time and effort into trying to rank “free” related keywords.
Use “Free” For The Right Customers.
There are plenty of potential users who are attracted by the word free, but who will not be good customers.
You must determine whether you’re willing to deal with this kind of customer or not.
Here’s how Gregory Ciotti explains the issue:
The danger of free: As we’ve seen here, there is a certain inherent danger in trumpeting free things. Having something for free will attract more people. But that will most certainly include a fair share of “bargain hunters” who aren’t likely to turn into the superstar customers that really grow your business.
If you are overusing free as your primary marketing strategy, it could backfire.
You might pick up some customers who simply want a free lunch, but who will never turn into paying customers.
Source
Before you homogeneously sprinkle your content, CTAs, marketing messages, and emails with the word free, do one thing.
Create a marketing persona.
During the persona creation process, ask yourself, how might a person like this respond to the word “free”?
Once you wrap your head around the psychological impact of the word on a customer’s mind, you’re in a much stronger position. Now, you can create content that resonates with customers and attracts them in the right way.
Free does not automatically improve your marketing power. It only improves your marketing power when you use it in the right way with the right customers.
Use The Word “Free”, But Focus On The Free Product’s Value.
Offering your product for free does not change the actual value of the product.
To say this another way, your product is the same product whether you charge a hundred bucks for it or give it away for free. People want something for free, but they don’t want crap.
Let me provide an example.
Imagine I spent a lot of time and money creating a powerful SEO software, and then I turned around and gave it away for free.
Even though it was free, it wasn’t cheap. I continued to invest tens of thousands of dollars to make the product as powerful and useful as possible.
My goal was to create value for users, not simply to hook users with the “free” word.
I know that when I provide value for others, it benefits my business and improves my marketing. Instead of relying on the word free alone, I focus on the value behind that free acquisition.
If you use the word free, you must obsessively focus on the quality and value of the product being offered.
The minute you let your free product decline in quality is the minute you lose your credibility.
Conclusion
Free is awesome.
Use it. Say it. Do it. Offer it. Love it.
However, don’t let things get out of control. When free spirals into a free-for-all of cheesy marketing messages, unvalidated value, and unproven claims, you begin to lose credibility.
Use free the right way.
How do you use the word free in your marketing efforts?
The advertising market becomes larger every year, and it attracts more customers and companies from around the world. But, when it comes to Adwords optimization, we all see the same mistakes from big companies sometimes, and they still apply the same technique that will never work at all, or that will lose money with not targeted clicks.
In this post, we will talk about using the word “Free” in Google search page advertising results, and when you should avoid using it. Please keep in mind that I’m only talking about products and services that are not free.
So, the user should pay in order to get benefits, however, the company still plays with keywords and add the Google search about free stuff to their ad campaigns.
When you have a valued product, you need to show its real feature, and what makes it better than the competitors. That’s the real strategy that will make more sales if you have the right product in the right place.
If you want to avoid losing money with Google Adwords, you should never follow Google in their optimizations. Google is the biggest search engine and it owns 80% of the search market, and even more in the next years.
So, if Google tries to use the word “free” for some popular searches that people should pay in order to get the product or the service, Google still advertises in its own network and for free, of course. No matter if the user is interested in buying or not, the cost is the same for them and it’s nothing.
On the other side, you’re a company that runs a business and you pay Google for every click generated through the search engine page result (SEPP). that means you need to save every dollar and make your ad campaigns targeted, as possible.
If you are selling laptops, for example, you should promote your ads in technology and high-tech related keywords. Most importantly, you have to advertise your product with “buying keywords”, such as buy a laptop and similar things.
If you try to copy Google and use the term “free laptops”, for example, you will get lots of clicks and nothing as sales. So, you are just buying not targeted traffic from Google, and the most dangerous thing is that no one of these people will buy from you. It’s simple because they’re looking for free stuff and not buying them. So, why waste your hard-earned money there?
Let’s take an easy example, when you search for “Free Domain” which is a popular searched keywords combinations, you will see something like the following search result that will be different from one region to another, but just take it as an example.
As you can see, Google itself tries to attract people who search for free domains. But, Google offers paid services in its App Engine platform. That’s not our problem, they own the advertising network, and even, if a few people will pay them, later, they still pay nothing for their own services.
At the same time, you can see that companies like GoDaddy, Register, and “1and1”, are claiming that they offer a free domain, but for paid services that are web hosting.
The problem here is that people are looking for free domains, If they need hosting with a free domain, they will search for that phrase. So, they will probably visit their sites, but they will leave them and try another search.
In this case, the 3 companies are buying not targeted traffic for people who search for free domain names, and they will visit companies that offer paid services only. Do you see the wrong optimization? It’s like putting business ads on health-related websites. The conversation will be near to nothing and the company is losing money.
Instead of buying that expensive cost per click for the wrong keywords, the company can explore more “buying keywords” and invest in them. For example, use “purchase a domain name” and start finding more keywords that a few companies or no one, is using actually.
That way, the company build strong optimized Google Adwords campaigns, based on the right keywords. Best of all, they get targeted visitors who are interested in buying the service and not want it for free.
This seems a simple topic if you’re not familiar with AdWords, and the thousands of dollars that companies pay every day for similar examples like the above one. 10 clicks for high competitive keywords will cost something like $500 to $1000 per day at least.
That’s an investment that will bring more sales if the campaign manager uses it in the right place. So, never use the Google examples when it comes to keyword optimization, and find new ways to get more sales, based on the right keywords that bring sales and not visits.
The bottom line here is that you should use the word “Free” only for free stuff and not just trying to drive some traffic from Google. Google is the best advertising network, but not for losing money on advertising with mistakes that you can avoid.