Business & Finance Advertising & sales & Marketing

The Reason Why Companies Give Away Free Things

Many people question the fact that companies give away free things and wonder what these companies achieve from it.
Well these companies provide freebies for a number of different reasons.
The majority of them actually use them as part of their marketing strategy and to gain new customers.
The most popular types of free offers that exist these days are free product samples.
For example, if a company that produces cat or dog food are releasing a new type of product then they will need to find cat or dog owners to purchase their new pet food.
Traditionally a company will invest money on advertising their company and products in newspapers, magazines and even on the TV.
But, a new way for these companies to gain new customers is to give away free samples and free things that will impress the potential customer.
In doing so, hopefully the customer will like the product and therefore decide to buy from them in the future.
It doesn't matter which way the company promotes their products, as they will need to spend money regardless as to which method they choose.
But the benefit of providing free samples to the customer is that the money spent on the advertising goes directly to the customer, as opposed to an advertising or marketing agency.
Many other free things are given away as part of a company's marketing strategy.
This includes free software trials, magazine subscriptions and even free mp3s.
These companies offer them for free as they feel confident that you will like what you try, and therefore signup to be a paying customer sometime in the future.
Of course, a company cannot be certain that this will always be the case, but a certain percentage of people will always come back for more.
There are some free things that are given away in order to build an audience for a website and therefore allow them to display ads.
For example free email accounts, whereby the company can place certain adverts on the site plus keep the user happy by giving away a free service.
This business model can be incredibly successful if the free service is of a high value, but there needs to be a balance between the amount of adverts that make money for the company, and not too many that the user will be put off.
This can be a winning formula as both sides get something from it.
Although companies provide free things in order to obtain something from it, there are in fact some cases where the free item is just given as a gesture.
In the majority of circumstances it can be a great benefit to both the company and the customer.

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