Going broke with FREE giveaways!

Online marketing is recreating the mistakes of traditional mainstream marketing. It seems history will repeat itself online as well. If we are doomed to repeat the mistakes of history it seems that online small business will be the casualties. This notion that in order to attract customers online you need to offer something for free is a textbook for disaster. I like free stuff like any other person and I take advantage of free offers all the time. I could not tell you though the last place where I got something free, probable because I would not go there unless I was getting something for free. I would go back and take advantage of a free offer but I would not be a regular customer. Is not attracting regular customers the goal of any business especially small businesses online?

Free giveaways and contests should be used as a reward for your regular customers! Giving away something for free will not automatically get you loyalty from a first time customer. Brick and Mortar Retailers have had to learn the hard way and it has been disastrous for them. That is why no one gives away anything for free anymore. Now you have to rent 2 to get 1 at the video store.

So why are we repeating this big mistake with online businesses? Everything is so transparent and transient online. Online retailers are interested in a quick buck. These online marketers are the same way but more than that they don’t have an original thought when it comes to online marketing. They would rather spout what they think people want to hear, “If you offer something for free you will get tons of orders!” I think that is irresponsible to say to a client. Everyone wants something for free and you will probably get a lot of activity on your site and tons of orders. You will though have to go through that again, again to maintain your sales and as soon as you stop the giveaways you will stop the loyalty.