Giving clients free product or services: the smart way

In a previous post, I dug deeper into giving away products or services for free. In my experience, free products or services are not appreciated to their full value and often not even respected. Free coffee machines and beverage dispensers lead to flat out squandering.
However, giving away products, services, or content is a powerful tool to attract future business. A tool that you should consider applying.
Here is what I found to work.
case 1:
Suppose you offer a service that is worth 200$. To attract business and clients, you decide to go door-to-door and give it away for a period of a month. Prospects sign up for your free service. You hope that they are satisfied and come back later as paying customers.
Let's assume they do come back, and you tell them the price will be 200$. The majority of them will react, "Oh, that is kind of expensive..." And it is, from their standpoint, given the fact that it used to be free. The prospect will often not sign up and leave with mixed feelings.
case 2:
Let's reverse things. You go door-to-door and offer the prospect the same 200$ service. You clearly state that this is a paid service, worth 200$. However, you tell them it is temporarily free for a month because you are a beginner, you want to get your name out and at the same time help some people out. Basically, you give them a temporary 100% discount. There is a subtle difference between a free service and a service worth 200$ that is free temporarily through a discount.
People that say yes will now have two positive feelings surrounding your business. First, their problem is solved, and on top of that, they got a 100% discount.
The people in case 1 only got one positive feeling; their problem gets solved. Still, since you did it for free, the value of this service was not entirely appreciated. The clients of case 1 will be harder to sell your services in the future.
All this might seem subtle to you, but believe me, it will make a difference in the long run.


Top 10 about the author; Erik Victor 

1. is a serial entrepreneur and started his career in Engineering
2. currently a majority shareholder in corporations in the fields of Industrial Real Estate, Wealth Management & Investment funds, and International Tax Planning
3. has a passion for the dynamics of young businesses and actively endorses several start-ups
4. is an engaged member of several think-tanks and an international conference speaker
5. has a business footprint in six countries
6. speaks five languages
7. personal life - resides in Europe
8. Erik (48) is known as a discrete and private person, a family man
9. loves to spend his limited holidays in the mountains or at sea on his yacht
10. Erik has no social media accounts



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