Can You Afford The “Free” Offer?

Does your company offer customers something for free? If yes, then you need to calculate how much it costs to give something away for free. Is the free offer earning money for the company, or is there ultimately a potential loss? Reconsider what is being offered.

When you offer customers something for free, there’s a real cost to you. It’s critical to calculate that expense in advance to determine whether you can afford to make the offer.”

Once you’re sure that you can afford your giveaway, you need to determine how many prospects or customers you are willing to accommodate. (For some offerings, such as content, the number of prospects isn’t limited.)”
~ The High Cost of ‘Free’: Four Types of Free Offers and How to Calculate Their Cost to Marketers, by Heidi Cohen, MarketingProfs.

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