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.