See How to Calculate the Cost of Your “Free” Giveaway Content

Didn’t your daddy tell you that nothing in life is ever really free? That’s never more true than when it comes to marketing. There’s always; I say again always, a cost to be paid, whether it is cash or your valuable time.

So when you are tempted to offer something for free, make sure to count the cost in each and every way you need to, so that you can make sure your free content, bonus gift or other promotional label you chose to give is affordable. It’s time to take a hard look at the costs you’ll incur along the road to a freebie.

What varieties of “free” are we talking about here?

The biggest places we see free work its way into our businesses is in the act of gathering email addresses. Offering a freebie is standard operating procedure, and will not be changing any time soon. Most of the time we are offered a free ebook, report, video series, e-course, webinar or email series in exchange for our email address and other contact information.

What you must understand is there are costs associated with the creation of these freebies. Let’s take a look at a few of the actual hard costs you’ll be forced to deal with in the creation of your freebies.

  • Actually writing or otherwise creating the content – There is someone who is in charge of getting this done, and you’ll very likely need to pay them. There could also be ancillary costs that go along with this, like software or hardware to help produce your content.
  • Designing the marketing funnel pages – This can be done with software programs, but someone has to understand how to do it, and that requires time, money and talent. Then there are web designers, and that can cost a bundle.
  • Marketing hard costs – You’ll need an email autoresponder company, webinar charges, and a way to deliver your freebie, whether it’s downloaded from your site or hosted elsewhere. Someone will need to set that up. Shipping and hard costs for physical products have to be considered too.
  • Advertising – You may well want to advertise for the greatest response possible, and of course this costs time and money.

While it’s still a smart idea to use this type of bribe to build a list of email subscribers, you need to be aware of what your freebie truly costs, and factor that into your cost per lead.

Posted on: 11.28.14