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MAKING MONEY WITH GIVE-AWAYS
The guy who thought of giving away free rolls of film every time you have
your films developed at his photo center - is a genius!
You know the rest of the story, and so do thousands other photo centers
around the world who copy this excellent promotion.
A budget conscious market is always out looking for a free lunch. For
this reason, you can build a marketing system that self-liquidates its
associated cost, distributing gift certificates that offer free this or
free that - all the customer has to do is pay a minimal shipping and
In Las Vegas, I met a poker player who sells software he put together for
$29 and higher. To double the volume and reach other markets, he decided to
repackage his software. He gave it a new name, made a new floppy disk label,
and offered it at a ridiculous price:
To receive the software, all you have to do is fill out the gift certificate
and send it back to him with $8.69.
THEY WENT APE! He was giving the certificates to schools, businesses, and
stores who give away the certificates as their own promotional gifts to their
customers. Because the cost to produce and mail this disk is 60 cents, he
was making $8 with every certificate that was redeemed for the free software.
$800,000 IN 27 WEEKS
Take a snapshot of this picture: Say, a total of 1 Million certificates
were circulated. Let's say you paid half a penny to print and distribute
these million certificates. Your cost is $5,000. If you generate a 7%
conversion, you'll earn $560,000.00
If you give other people permission to make copies of and give away your
certificates, your cost to circulate 1 Million certificates will go down.
But your opportunity to make money remains the same.
1% response = $80,000
2% response = $160,000
3% response = $240,000
5% response = $400,000
10% response = $800,000