Speaking about free...

Based on the last post, and continuing to speak about the new amazing price that is free, here is a really interesting book on the topic.

Chris Anderson, the author, does a very good job at promoting the idea that free is in fact the best way to make money. As a matter of fact, if you want his book go to Longtail.com or download it from iTunes (quick FYI, its one podcast per chapter). He goes on to that say free in this economy is not just another marketing gimmick, but in fact something that will attract customers.

To close, here is a great example of what free can do for you. Radiohead's In The Rainbows album, was available for practically nothing online - it wasnt free, but it was whatever the consumer wanted to pay (not quite the normal $15.00). To date, the average amount paid was $6 for the album, but it has been the most successful. The tour that followed the album sold 1.2million tickets... making it their biggest.

As we are thinking about marketing to the new consumer (that one that is worried about his every dollar) consider doing the following...

1)Let him be in charge when it comes to paying for your product. If they think your brand is worth it, they will pay for it - a great example is Reynolds Wrap.

2) Remember that in the consumer's mind, cheap and free are very different amounts - whats more, they have very different value perceptions. Free is something you get, its a value added... cheap, well that is something that is not worth it, hence we had to lower the price...

Thoughts?!

Oh, and by the way, if you are giving something free, make sure you get something in exchange... THEIR INFORMATION!!

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