Could you imagine movies at the theater...being FREE.
And I mean totally 100% free - no catch.
Believe it or not...this is being considered.
Some chains are considering making movies free - but charging a lot more for the concessions.
Just imagine how this could change business...
I have long talked about the Power of 'FREE'.
Once a marketing gimmick -- now 'free' is a full fledged economy of it's own.
Lets look at a little known company called GOOGLE. Heard of them?
But have you noticed how virtually EVERYTHING they do - is FREE. Think about this for a moment. This clearly is no accident.
How can they do this and yet still be worth billions?
The simple truth is - they funnel us consumers in for free - and then introduce a selection of paid services (Adwords for example).
And what do they have that is free? Why - a search engine of course. This is their free gift - to introduce us gently to the whole 'Google Experience'.
How about Facebook? They too have a free entry into their experience - in this case - they offer a free tool that allows us to connect easily with pretty much anyone online.
In fact - Facebook take it even further - they make a point of TELLING us that they are free! That is smart!
It really is vitally important - that you understand - the relevance of adding 'free' - to your business.
Giving away something for FREE at first - is a key strategy you need to understand and implement.
But does giving away something for free - mean it will take longer to make money online?
I'd have to say yes. As you may know - it took me 6 months before I made anything.
But does this strategy work?
Undoubtedly 100% YES.
I realize I go on about this time and time again - but I still see a TON of people online try and SELL immediately.
Wrong wrong wrong wrong wrong.
Delivering VALUE first - in the form of something that is free - is the way to grow your business here in the 2nd decade of the 21st century.
Delivering value first - in the form of something that is free - is the way to grow your business...
-- Chris Farrell
Free is the future -- this is how to create and grow a business.
You will then monetize your business - by upselling or promoting related products/services -- but you need to capture your target market's attention first.
And you do that - by grabbing you future paying customers attention - by offering something of value - for free.
At the age of 40, King Gillette was a frustrated inventor, a bitter anticapitalist, and a salesman of cork-lined bottle caps.
It was 1895, and despite ideas, energy, and wealthy parents, he had little to show for his work.
He blamed the evils of market competition.
His boss at the bottle cap company, meanwhile, had just one piece of advice: Invent something people use and throw away.
One day, while he was shaving with a straight razor that was so worn it could no longer be sharpened, the idea came to him.
What if the blade could be made of a thin metal strip?
Rather than spending time maintaining the blades, men could simply discard them when they became dull.
A few years later, the disposable-blade safety razor was born.
Over the next two decades, he gave away millons of razors to soldiers in the war, hoping the habits soldiers developed at war would carry
over to peacetime.
He gave razors in bulk to banks so they could give them away with new deposits ("shave and save" campaigns).
Razors were bundled with everything from Wrigley's gum to packets of coffee, tea, spices, and marshmallows.
The freebies helped to sell those products, but the tactic helped Gillette even more.
By giving away the razors, which were useless by themselves, he was creating demand for disposable blades.
A few billion blades later, this business model is now the foundation of entire industries:
Give away the cell phone but sell the monthly plan
Make the videogame console cheap and sell expensive games
Install fancy coffeemakers in offices at no charge so you can sell managers expensive coffee sachets
Make printers extremely inexpensive yet charge $20 a pop for the ink cartridges
Give away a free eBook so you can upsell the video version of the book
Thanks to Gillette, the idea that you can make money by giving something away for free - is no longer radical.
Are you beginning to see how your web business should work...
So...where do things go from here?
Future scenario 1:
Low-cost digital distribution will make the summer blockbuster free. Theaters will make their money from concessions -- and by selling the premium moviegoing experience at a high price.
Future scenario 2:
Ads on the subway? That's so 20th century. By sponsoring the whole line and making trips free, the local merchants association brings grateful commuters to neighborhood shops.
Happening right now:
When Wal-Mart charges $7 for a new hit DVD, it's a loss leader. The company is offering the DVD below cost to lure you into the store, where it hopes to sell you a washing machine at a profit.
Happening right now:
Your cell phone company may not make money on your monthly minutes -- it keeps that fee low because it knows that's the first thing you look at when picking a carrier -- but your monthly voicemail fee is pure profit for them. Clever huh!
A psychological switch has been turned and things are flipping towards zero.
BUT A WORD OF WARNING!!!!!
From the consumer's perspective, there is a huge difference between cheap and free.
Give a product away for free and it can go viral.
Charge a single cent for it - so it is seen as 'cheap' - and you're in an entirely different business, one of clawing and scratching for every customer.
Don't do it.
The huge psychological gap between "almost zero" and "zero" is why micropayments failed.
It's why Google doesn't show up on your credit card.
It's why modern Web companies don't charge their users anything.
And it's why Yahoo gives away disk drive space.
Look at Craigs List. A Free Listings site that made $50 million last year from the few things it charges for.
And in a lot smaller way - it's how I managed to build a list of almost 20,000 in less than 2 years - which has changed my life completely.
The moral of this story?
The winning companies make their stuff free first.
Are you?
Here's a quick video from a recent issue of Wired Magazine that you may enjoy that reiterates this FREE theory.
(some of the information in the above article is from Chris Anderson, the editor of Wired Magazine).
I have been talking with my nephew about a joint venture and have been deep in thought about how to approach what we want to do. This has been foremost in my thoughts--->the FREE approach. This has helped convince me that it is the correct way. I kind of knew this (some really, really nice man has been telling me this for many months now :) !) Folks, Chris has made a huge point here. Sit back, contemplate it, then take appropriate action!
Rich Wright (aka richlefty52)
1 of 1 people found the following comment helpful: Excellent advice! The Lightbulb Just Came On., December 30, 2009
Chris, thanks for bringing this to my attention. It is truly astounding.
I am seriously reconsidering my business model. I am, right now, thinking of products I can create, that have a back-end that I will sell for a profit when I give the initial product away free, something they must have to make the initial free product work.
Free really gets people's attention and we need their attention in this online business. And if we are smart and jump on this without delay, we will put ourselves ahead of our competition before they even get an idea of what's going on.
Using the example stated above of razors and razor blades, you can't use a razor unless you buy the blades for it.
Thanks again!
Allen
1 of 1 people found the following comment helpful: Happy Days is also FREE!, December 30, 2009
When Chris came along and showed me hoe to put in an opt-in box I said thank you.
when Chris came along and showed me how to put a video on my web page, I said thank you (after laughing my head off first when I watched it) (So did Chris if I remember).
When Chris cam along and said, Happy, you should write a book, I did, and set up a sales page for $67, and I said thank you.
When Chris said I should give it away for FREE... What?
I got on my knees and thanked the Universal Spirit (and you Chris) for it not only 'clicked' in my head, but the enormity of the pure emotional energy it gave me made my whole body shudder.
I just had a reply froma guy who said "This site is for selling, not a bloody socializing site" Poor man.
Thank you Chris, I am maybe overdoing the free but it is attracting people to me...and my website.
Happy Days Free with every box of Cornflakes.
2 of 2 people found the following comment helpful: An example of FREE in my neighborhood, December 30, 2009
The best of offline business has always been about value and excellence in customer service, hasn't it? Now what is the translation of that in the online world. Value and Excellence in Customer Service. Perhaps online is just catching up to best practice after all...
0 of 0 people found the following comment helpful: I believe Your right to build a custmer base., January 3, 2010
You and I spoke sorta in line with this before. It is about providing services that your members will use a life time. Example marketing tools, products we consume each day. And I am not talking the lotions and potions that are not necessities. That is what affiliate marketing is all about. Making little money on products and services that we can all profit on. And retaining that customer a lifetime.
3 of 3 people found the following comment helpful: The Train is Moving Out, January 4, 2010
I'm new to the site and have been working hard for the last two weeks to get my new site up and running featuring Chris's Free eBook as my first product. Over the last year I had quit my Netflix account because of its distraction constraints on me. (It was never too expensive just addictive.)
Anyway, a reent situation came up where I was able to sign up for it again and I did. Well, after doing so I noticed that they had added a new category to their movie quue. No matter which plan I signed up for to get DVDs sent to my home they had introduced a whole new category of Instant movies that were streamed to my computer!
At first, I thought I read the information wrong and believed that I would b either charged for watching the "Instant" movies or they would delay my mailed DVD's as long as I was watching on line but I came to discover today that was not the case. I'm telling you it confused me greatly. It just didn't make sense that they would charge me for each additonal DVD I had out but I could watch online for FREE. Well, I didn't understand it but over the last two days all I could think about was who I could share this with, after all, it was FREE and instant!
It was then I read this story and realized that by giving away FREE instant movies not only was Ntelfix saving on postage but getting a WHOLE LOT OF GOOD WILL from me. It was crazy, bizarre, and (dare I say) ...Genius!
Chris you are so right! FREE is the futre of the internet and maybe even our economy as we know it. Now, all I have to do is get my act together and get on the train before it pulls too far down the tracks. For anyone who has doubts, my suggestions is that your RUN and don't walk. The whistle has blown and the train has already left the station! Run, baby, Run!
1 of 1 people found the following comment helpful: I like getting things for FREE, February 22, 2010
So maybe the rest of the world does too ! Will have to re-think my business model to give away what I was planning to sell .... and have faith that the $$$$ will follow.
Day 1 - am learning new tricks. Candace www.gr8marketingonline.com
0 of 0 people found the following comment helpful: FREE has always been my #1 marketing title, September 14, 2010
In my previous business where I conducted real estate investing workshops to sell education products, I had to get butts in seats. The best way to get people there was to offer a "FREE" real estate workshop. I tried all other sorts of advertising but the best one always came down to the word "FREE"!
Thanks for reiterating the power of FREE in business!
1 of 1 people found the following comment helpful: OOHH YES It works alright!, September 15, 2010
Giving away a free month of gym membership on our birthday month promotion last year grossed us over 83K in sales over 12 months,sadly a few simple changes to the wording this year left us ...well live and learn. Free works,Chris has hit the nail right on its little flat head. Just be sure that whatever is free initially has some form of continuity marketing behind it and I'm not talking about the sort of continuity that those scum sucking "guru" snake oil merchants are flogging. The new age of selling is here,forget the "porcupine close" or the "what would you like to think about?" retort. Aim to build a relationship and let your customer or prospective customer know you're there to help them and you'll be comfortable with whatever decision they make. Go ahead try it, stop trying to sell and learn to become a "trusted confidant"
1 of 1 people found the following comment helpful: connect for free !!, September 21, 2010
Hi great article Chris, thank you :-} Im noticing more and more every day how "free" is being used in the market place, and amazingly whilst writing this comment I was interupted by my phone ringing, when I answered it it was one of those recorded messages which said," would you like free calls from your landline 24/7 ?" need I say more ! thanks again Chris, I will certainly be going down the "free" route. Simon.
0 of 0 people found the following comment helpful: FREE *** FREE *** FREE, September 30, 2010
We are getting the concept, thank you we know it works! we adopted the principal in a previous life.
We will be happy to give you all that is on your'PC' site BUT for Mac-heads FREE!!
Our take will be we learn your knowledge and know-how to do as you have Chris, on this site, for us to develop our own product in similar vein..... YES for FREE!
What say you??
Bob and Christine PS: Did you know a little Apple store in Cambridge UK gets 33,000 visitors/week?
@@@@@
1 of 1 people found the following comment helpful: Right on, Chris!, December 9, 2010
I love your stuff... this article on FREE is BRILLIANT!... my only question is since you're so stinking rich, why do you live in a bowl of granola like Beverly Hills!? Ain't nutin' like the Cumberland Plateau in Middle Tennessee... and there are fewer fruits and nuts and flakes!
0 of 0 people found the following comment helpful: Yes, FREE works!, April 22, 2011
As a massage practitioner in an overly-saturated market here in Mansfield, Ohio I often do the "free" thing. It works well for a couple of reasons. When I'm asked if I'd be willing to do chair massage for a group, I say "of course" because I'm then able to market to them with flyers, my business card/s, coupons for dollars off services and the good will that's established by making them feel great after a 7 minute back & shoulder massage. I've even rented space for marketing my services with chair massage - the first 3 minutes were FREE;I'd set my timer and when it went off, they could get up and leave or choose to stay and pay the standard $1/minute. Not many people got up after three minutes...they's say "set the timer for 10, please" and I'd make $10 or whatever time frame they'd request. TOTALLY FREEBIE chair massages almost always landed me "tips" and of course I was always asked "where are you located?" "Do you have your appointment book here with you?" etc., etc.
I never realized what I've been doing for years in my offline business could be what I'd do online! Lightbulb ON.
Have I told you lately how much I love this membership site???
Allyson
0 of 0 people found the following comment helpful: Very true, July 9, 2011
Most people are use to thinking,gifts need to be tangible things.Do you know that if you say good,inspirational words to people it is a very great gift you can offer? We are really learning a lot from you Chris.Keep it up
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Delivering value first - in the form of something that is free - is the way to grow your business...
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Value and Customer Service, December 31, 2009