Home – New Forums Marketing mastery Does free work?

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    James Millar
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    The simplest explanation (without a picture of a supply and demand graph) is that when something is free there is no need for the consumer to assess value before consuming. So when something is free there is a very very large pool of consumers – tyre kickers, window shoppers etc. Those consumers probably don’t assess your product well because its very much an “easy come easy go” transaction. As soon as those consumers are asked to part with money to consume (any money – even as little as 1 cent) the demand for that product tends to shrink exponentially (the non linear bit).

    So with that in mind, “free” comes with the risk of an exponentially lower conversion rate to paying customers. Far lower than the average business owner may expect.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
    #1108837
    kathiemt
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    It’s alright, no graphs needed. I just felt you were speaking in the lingo you probably speak in all day at work and to your clients and colleagues. Thought it might be better if you dumbed it down a bit here.

    #1108838
    LifeIsABeach
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    In the software industry it is very common to offer a “Free” version. Limited by time or function they help users get a taste of the product and if they like it – they buy it. That is how I bought “Snagit”, MYOB, and a host of other software tools and products.

    We offer a free product at http://www.freerealestatecrm.com and I can say the conversion rates are viable enough to continue offering the service.

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