Jim's Marketing Blog

Yes, free offers can massively increase your sales. But you need to use them correctly in order to get the best possible results.

Let’s go.

There’s a famous saying that tells us, when it comes to business, “There’s no such thing as a free lunch”. We’ve been trained to believe that a freebie is seldom really free.

Why should this matter to you?

Allow me to explain.

Is it a free offer or just a mutual exchange?

I remember visiting a new cafe in my local town. They had signs everywhere offering free WiFi. The guy next to me called one of the staff over. He explained that he wasn’t able to access their free WiFi. He was told that in order to access it, he would need to set up a free account, giving his name, his email address and his postal address. The customer replied, “No way! I thought you said it was free? I already get more than enough spam”.

An awkward conversation followed, with the owner trying to defend their position and the customer saying the free WiFi offer was deliberately misleading. And of course, all this happened in front of the other customers. That negative exchange will have totally changed the customer’s experience.

The impact of a fake free offer will vary from person to person and from situation to situation. But it will be there. And you need to be aware of it, if you refer to mutual exchanges as free offers.

Full disclosure is a must

There is a way to largely mitigate the negative impact of the kind of free offer used by that cafe. It’s all about providing full disclosure. If you want people to take some kind of action in return for the offer, make it clear. If you ask for contact details, let people know why, right there, in the same space where you make the free offer.

People respond a lot better, when you’re being open and honest with them. For example, if you ask for their details, tell them what you intend to do with that information. If you don’t plan to sell their information, or send them ads from 3rd parties, tell them. Tell them that you respect their privacy.

Note: This also applies to online lead generation (or lead gen), where people are asked for their personal details in return for some kind of freebie. And remember that there are regulations governing the way you request, capture and store data, etc. These vary from country to country.

A genuinely free offer

If you make a genuinely free offer, (like the example below) with no strings attached, nothing concealed, it creates a much better impression than the previous examples. It also sets you apart from the masses. People will look for the usual disclaimer, but it won’t be there, because there isn’t anything for you to disclaim. They’ll quickly see that you’re being totally honest with them.

It will instantly improve how they feel about you, your business and the services you provide. It will help you earn their trust. And it will directly, dramatically improve the story they tell their friends.

The deli counter: A great free offer template

If you want a template for the best kind of commercial free offer, look no further than the free samples on a deli counter. It’s simple. And as long as the food is delicious, it’s highly effective. The prospective customer tastes the food ahead of buying it. If they like it enough, they’ll buy it.

Another reason why I chose the deli counter example, is that the profit margins on food are typically hundreds of percent. So the free offer costs the business very, very little. The prospect, however, attaches value based on the retail price.

Your free offers should strive for the same type of balance: A low cost for you to provide it, but a higher perceived value to the prospect.

In short, I recommend you take a structured approach to your use of free offers. Do the research first, based on what your goals are for the offer. Remember that full disclosure is extremely important on many levels. And whenever possible, use that deli counter example as a template.

What I am about to share with you is gold dust. And if you take a moment to read it, it can radically improve the success of your business.

It starts with this very simple idea.

You cannot develop greater value for your customer or deliver higher levels of service to your customer, without benefiting from it equally. That’s because your customer, and your business, are one.

Now I’ll explain why.

There’s only us and us

In business, when it comes to the vendor and the customer, there’s no us and them. There’s only us and us. You already know that customers are an essential part of your business. Logically, when you make things better for them, you make them better for your business, too. Your customer, and your business, are one.

A common objection I get when explaining this to business owners, is a version of the following.

But Jim, if I go to that extra effort and expense for my customers, it will cost me in time and money. The customer will benefit, but I’ll lose out.

Here’s where the confusion occurs.

Business owners will look at their current numbers, subtract any extra time or financial investment, and it doesn’t add up. What they’re missing is that their current numbers are a fraction as high, and a fraction as profitable, as they would be with the improved model.

Invest in delighting your customers

How do you switch to the improved model? You do it by developing your business, so that it’s transparently designed to be of massive value to your customers and prospects. I provide lots of useful information in that link, which you’ll find useful.

Here’s what we see from those rare business owners, already embracing this customer-focused attitude.

• They attract the best customers.
• They thrive in every economy.
• They retain existing customers for massively longer.
• They generate a buzz around their products or services, simply by doing what they do.
• They never need to sell based on price.
• They enjoy a hugely valuable profile in their marketplace.
• They attract high-value opportunities, from brands who want to collaborate with them.
• They are far more productive.
• They attract endless word-of-mouth referrals.
• They truly enjoy every working day, because all of the above things are happening.

All that, and more, can be yours, when you fully embrace the idea that your customer, and your business, are one. You’re then free to grow a high-profit business, doing your best work, for the best customers.

Do this correctly and you’ll be amazed at how quickly, and how dramatically, things improve for you.

When a business owner is failing to get the sales they need, increased awareness is almost never the issue.

Think about it.

If all they needed was increased awareness, they could just advertise their product or service correctly. Depending on their advertising budget, they could reach thousands, hundreds of thousands or millions of prospects. And fast.

It’s far, far more likely they have a different problem.

Most commonly, it’s one or both of the following.

1. It could be that too few people who are aware of (whatever they sell), are motivated enough to buy it. In this case, the business owner needs to figure out how to inspire prospective clients or customers to take action.
2. It could also be that too few people who do buy it, are impressed enough to tell their friends or become a repeat customer. In this case, the business owner needs to improve their product or service. They need to make it highly referable. Something worth talking about.

Now what?

The first challenge is to identify and accept the actual problem. Acceptance is by far the hardest part. In my experience, once the problem has been accepted by the business owner, they’re 90% of the way to resolving the whole issue. 

The second challenge is correcting the problem. And that’s massively easier. There are lots of proven ways to quickly and inexpensively put things right.

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