A Unique Marketing Strategy: Can You Give Something Away and Still make Money?

Advertising, Internet Marketing, Traffic Generation — By on December 20, 2012 11:44 am

pricing-of-products-250x250Is the price of something that important when it comes to selling a product? Have you ever been unsure of how to price something and what the customer will think about the product solely based on the price? Companies everyday are debating amongst themselves whether the price is too high or too low and the different ways in which each price could possibly affect their business. What it all comes down to is that your pricing plays a very important part in your marketing strategy. This marketing strategy is the basis of your launch and in more ways than one, your small business’s success is due to the principles that you have in place during that time.

Some companies continuously prosper from a marketing strategy and others struggle with this concept making them susceptible to failure. Other companies start out well with low prices to gather a following and then are able to increase them with time but again, this doesn’t work for all if any in some cases. All this can be sorted out and made clearer if you focus on one thing and that is your target market, or simply put, your customers. If you don’t build a substantial customer base you do not have a business. It’s much easier to have a business and be successful if you can be original and think out of the box.

Being an extremely important component, thinking out of the box and deciding what your next move is to get your product in front of as many people as possible. When you do, you need to capitalize on that audience by making them want it, which is usually a difficult task in itself. The keyword in that last statement is usually because thinking out of the box is exactly what Cards Against Humanity did when they decided to release holiday packs and let people pay whatever they wanted to. Each set of cards cost the company around $1 to make while credit card fees and shipping costs brought the total cost per pack to around $3. Imagine the amount of traffic you could pull in when advertising for something like this. It definitely gives you a different outlook on pricing when it comes to an advertising standpoint. On the flip side, you are probably thinking to yourself, “wouldn’t everyone just purchase the cards for free?” One would think so but this well thought out marketing strategy was well worth that chance when you look at the figures.

In total, Cards Against Humanity spent $225,762.63 on manufacturing costs, postage to U.S. and Canadian customers, fulfillment fees, envelopes, developing and hosting costs and envelope illustrations. After selling nearly 85,000 sets of cards and occurring a massive 516.7% in web traffic, their average price paid was $3.89 and the median was a surprising $5.00. If you do the math, this is a fairly large profit in a very short period of time. Within a few days, they managed to sell out of their Holiday packs but not before making $295,831.10, which gave them a total profit, with all fees included, of $70,066.27. Are you going to think twice before you give your next product a price?

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  • zlatokop

    Well for example me: I am giving away tools for linkback or sign up through my affiliate link. It doesnt cost anything and there is no catch or anything behind it. For example: I made robot that can pull affiliate coupons from prosperent and process them to wordpress coupon sites. Thousands of coupons with no monthly payments, subscription. All I need to find people who will actualy have successful coupon sites. It is win win situation.
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