The Value Of A Freebie
Have you ever wondered - what's the value of a freebie?
Here's some food for thought in the New Year...
You see, my partner Jo Han Mok conducted a little marketing experiment which showed very clearly that giving away free stuff may not always be the best policy for a marketer, and even for the person receiving it.
It's a principle rooted in human psychology that people will only cherish things they pay something out for.
In the same sense, people are more willing to act on information they paid money for, as opposed to freebies - no matter how good they are!
Is free = no value?
This may be a little extreme, but are the days of giving away stuff over? Will it be better to charge a token, regardless of how small, for information.
Think about it.
By the way, you can see the experiment here.
Here's some food for thought in the New Year...
You see, my partner Jo Han Mok conducted a little marketing experiment which showed very clearly that giving away free stuff may not always be the best policy for a marketer, and even for the person receiving it.
It's a principle rooted in human psychology that people will only cherish things they pay something out for.
In the same sense, people are more willing to act on information they paid money for, as opposed to freebies - no matter how good they are!
Is free = no value?
This may be a little extreme, but are the days of giving away stuff over? Will it be better to charge a token, regardless of how small, for information.
Think about it.
By the way, you can see the experiment here.
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1 Comments:
I took part in Jo Han's experiment and got his report. All in all good enough, and the information (much of it from "the masters") was great, but I'm not sure the price would have any effect on whether or not buyers would use the info.
Can you share the results of the experiement to clarify your wondering if freebies are passe?
And how does this relate to the sales funnel? Should we now gather the masses with 'overdelivered' cheap (not free) reports? Seems as if most people I know will download anything free if it looks even slightly worthwhile, while not everyone will buy a report at any price.
This method of approach is probably a GREAT way to weed out the "lookers" and get closer to the "action takers", though. I'd love to see Jo Han's findings...
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