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 of
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 re-package his software. He gave it a new name, made a
new floppy disk label, and offered it at a ridiculous
price: free.
To receive this 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 69
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
before taxes.
That's 70,000 certificates redeemed with
an $8 profit
tagged to it - $560,000.00
NUMBER 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