Making Money With GiveAways
The guy who thought of giving away free rolls of film every time
you have your films developed at his photo center - is a genius!
You know the rest of the story, and so do thousands other photo
centers around the world who copy this excellent promotion.
STRETCHING DOLLARS
A budget conscious market is always out looking for a free lunch.
For this reason, you can build a marketing system that self-
liquidates its associated cost, distributing gift certificates that
offer free this or free that - all the customer has to do is pay a
minimal shipping and handling charge.
FREE SOFTWARE
In Las Vegas, I met a poker player who sells software he put
together for $29 and higher.
To double the volume and reach other markets, he decided to
repackage his software. He gave it a new name, made a new floppy
disk label, and offered it at a ridiculous price: FREE
To receive the software, all you have to do is fill out the gift
certificate and send it back to him with $8.69.
THEY WENT APE!
He was giving the certificates to schools, businesses, and stores
who give away the certificates as their own promotional gifts to
their customers.
Because the cost to produce and mail this disk is cents, he was
making $8 with every certificate that was redeemed for the free
software.
$800,000 IN 27 WEEKS
Take a snapshot of this picture: Say, a total of 1 Million
certificates were circulated. Let's say you paid half a penny to
print and distribute these million certificates. Your cost is
$5,000.
If you generate a 7% conversion, you'll earn $560,000.00
NUMBERS GAME
If you give other people permission to make copies of and give away
your certificates, your cost to circulate 1 Million certificates
will go down. But your opportunity to make money remains the same.
1% response = $80,000
2% response = $160,000
3% response = $240,000
5% response = $400,000
10% = $800,000
4% response = $
