Making Money with Give-Aways

12/2/2013

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 60 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% response = $800,000

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