Why do Freebies Exist & How Can Companies Afford to Give Them Away

Freebies are free stuff, coupons, samples, software, gifts, and others; and they do exist. They are given by companies as part of their marketing and promotional plan. They give out such free samples hoping customers would like them and then patronize them later on. They send such free stuff to customers upon obtaining their addresses and other personal information. Some companies do not require personal information while others would ask customers to answer their surveys or short questionnaires to get feedback about their company and products.

Companies usually have an annual budget for promotional purposes of their products. They allot money for the creation of these free samples. Giving samples will allow customers to know the product so that they would buy them later on. This would bring additional sales for the company in the future. The main reason why companies give such free stuff is to entice and gain new customers.

Giving out free samples to customers would build a direct relationship between them and the company. This is actually cheaper and more beneficial than spending thousands of dollars for print and broadcast advertising. Media advertising does not promote a direct relationship with customers as they would only see the product but not really have a taste or a feel of it. The company would be directly paying the customer, their actual target, than an advertising agency which just serves as the “middle man”. Sales are more possible with direct advertisement than through the middle man.

Companies also give popular freebies like magazines subscription, music files and game and software trials. These can be expensive to give but the companies are so sure of their product that they would earn additional customers later on. Not all people would patronize these products in the future but they are sure that most of the beneficiaries of free gifts would buy from them later on.

There are also other types of free gifts given by companies such as webmaster resources, profile pages in their website and free email sites. Customers would love this but the catch is that the companies place brief ads on these pages every day. This would make the customers know what they are promoting. Both the company and the customer benefit from this set-up. Giving loyal customers a page on the company website would not cost much for the company.

Companies also give free stuff as a gesture of kindness and appreciation. These are given during special seasons such as Christmas. They also give gifts during their anniversary and inventory periods. Again these companies have allotted a budget for such occasions which is a minimal portion of their yearly sales. It should be remembered that a certain percentage from the total expenses for marketing may also be added to every item the company makes and sells which means customers still pay for these free stuff.

Without promotional and marketing techniques, a business can fail. Companies need to be felt and seen by customers and one effective strategy is through freebies continuously given to the public for name recall.

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