Know How Much Your “Free” Giveaway Costs
Giving away “freebies” is one of the popular ways for many businesses to encourage future sales. Whether your company is big or small, hosting a website or blog that offers giveaways is a powerful and effective marketing strategy to increase traffic, create awareness and attract more customers.
No matter how worn out the concept is, getting something free usually excites most people, except perhaps the marketers who need to deal with the cost. Knowing the real costs, involving time and money, to create and ship the free products can help the marketer obtain an accurate picture of how much time and money will be needed once free marketing promotion has been launched.
Costs to Calculate for Your “Free” Giveaway Content
Marketers usually employ three types of promotions for free giveaways: sweepstakes, free contest, and lottery. The biggest places where freebies can work their way into people’s consciousness is by gathering email addresses. In most cases, customers are offered free eBook, video series, webinar or email series, report, or e-course in exchange for their email address and other contact information.
These marketing strategies can provide great results, but they’re not free for your company. Unless you’re an expert in multi-tasking, you have to hire people to help create and set up an efficient freebie mechanism. At the minimum, here’s what you need to spend for to deliver the free stuff to your audience.
- Web Content – Your product or service must be presented in a well-written content to make it highly interesting to the target audience. Unless you’re a professional writer, you need to pay someone to write or document the content you’re producing.
- Squeeze Page or Landing Page – Although you can find free software to download, you may need to acquire a costly one or hire designers to create more professional lead page that will captivate viewers.
- Production and Shipping Costs – While you’re offering something free, you’re paying for its production and spending money to deliver the hard product to certain destinations.
- Marketing Funnel Hard Costs – Setting up webinars or email auto responders are accompanied by at least a minimum monthly cost. Although you can opt for lower-priced services, you audience is limited based on your selected plan.
- Advertising – The surest way to put your website on top of search engine list is to through advertising. Are you financially prepared to pay for ads to broaden your audience?
The word “free” always entices customers and prospects successfully. Many marketers use freebies to build their business because freebies offer a two-fold advantage. First, customers may find the value of your product or service and continue to purchase it. Second, the freebie may psychologically convince your prospects to purchase from you.
However, the word “freebie” rarely applies to marketers, due to some hidden costs that marketers neglect to factor in when they offer products and services free. Make sure to do your math and count the cost of “free” to avoid being on the losing end after the campaign.