Give Your Products Away For FREE

One of the fastest ways to grow your business is to give your products away for free allowing people to try before they buy. With this strategy you must know your lifetime customer value.

Let’s use a hairdresser as an example. The average value of a sale when a client comes in is $60. Minus the $20 cost to service the sale, which leaves $40 in profit. A client returns on average 8 times per year, which makes them worth $320 in profit per year. And on average each client stays with the business for 4 years, which makes every new client that comes in the door worth $1,280 on average to the hairdresser.

If this hairdresser offered his service FREE for first timers, in most cases he is giving away $60 to make $1,280. Not a bad deal at all!

Too many business owners and entrepreneurs today still struggle with this concept, but as you can see with this example, providing you know your numbers and the odds are stacked in your favor, it makes good sense to give your product away for free to attract more new business.

I also know of a Deli that used this concept when they first opened for business. They did their maths and figured rather than spend a fortune in advertising, it was cheaper to give away FREE lunches for a whole week, which they did and their business went Gangbusters from day 1.

Now a key concept to employ when using this strategy is to combine some magnetic marketing with it to help get the new client into the habit of shopping with you. Here’s what I mean; If we use the hairdresser example, the first step involves giving away the first haircut free, then before they leave hand them a coupon to be redeemed in the next 60 days for a special offer for their next haircut. Then when they come back the second time do the same again with either the same offer or a different offer to attract them back to you and after that the majority will stay on as repeat clients.

There are countless other examples of this powerful strategy and I’m sure you get the concept.

Yours in success,

Aaron Parsons.

P.S. The Ultimate Entrepreneur Boot Camp is only a week away, only a few seats left, book yours now at:
http://www.TheUltimateEntrepreneurBootCamp.com

Tags: Aaron Parsons, advertising, Business, client, Entrepreneur, Lifetime Customer Value, Marketing, profit, Strategy, success, The Ultimate Entrepreneur Boot Camp