Whether you are a small business or a global brand, giving away free stuff can make you loads of money. So don’t be miserly or mean spirited when dealing with your customers. Here’s why.

1. Free stuff creates a buzz

In today’s day and age, thanks to social media, news travels fast. If you give away something free people will tell their friends who will tell their friends, and so on. You can create a lot of excitement and noise in this way. People will want to check out what’s going on.

2. Free stuff encourages people to try your products or service risk free

This is important if you want to prove that you have something different or better to offer. People are more likely to try something they normally wouldn’t if it is free and without commitment. 

3. Free stuff is the hook that gets customers in 

Sure, there are always a few customers that will order the bare minimum but the majority will buy what they would normally would and return to buy more. Why do so many restaurants offer “Kids Eat Free” days? Because kids don’t eat alone. 

4. Free stuff means that customers are more forgiving 

People are more forgiving if they feel like they’re getting a bargain. That’s not to say you should use it as an excuse to give poor service or sell substandard products, but it can be an advantage for testing out something new or relatively untried. 

5. Free stuff creates positive brand association 

People love to get something for free, no strings attached. It makes them happy and brightens their day. By doing this, you can create a hugely positive association with your brand. Often the cost of offering a freebie is not all that different from deep discounting. Yet the former has much stronger customer value because they perceive your business as being generous and not penny pinching.

6. Free stuff creates a usage habit 

By offering something free, people are more likely to give your product or service a try. And once they’ve been hooked (assuming their experience is positive) they’re more likely to come back. So you become part of their consideration set and are much more likely to gain their repeat business in the future.

7.Free stuff can connect you with your customers

People often place value on intangible elements that your business can provide. For example free training videos, usage hints, alternate product uses, podcasts and other digital content. Because it's digital, it costs you nearly next-to-nothing to distribute. Yet it has the great benefit of getting customers to register their name and email address, giving you with a means to contact them in the future. 

8. Free stuff persuades customers to upgrade to a premium

Providing a free or basic service allows you to gain a large user base quickly. Then, those who want more features can pay for a premium or advanced version. People that upgrade tend to be the minority, sometimes only 5% or less. Yet, if the incremental production costs of your product or service are low, this can often be more than enough to keep the business highly profitable. 

Can you think of any other ways that giving away free stuff could benefit your business?