The Internet at large has drastically changed the consumer’s perception of free. Nearly all Internet business models, including Second Life’s, begin with offering access to free content or entertainment and rely on the hope that one day they will convert their audience into paying customers, or find customers that will pay to communicate with their audience.
As a result, the Internet has not only raised the bar on the quality of free, it continues to fuel the consumers sense of entitlement to free goods and services, weakening brand loyalty and creating a commodity shopping mentality.
All that said, why would you consider marketing strategies that are based on giving away the farm? Simple, because it still works – provided your expectations of the promotion are based in reality and your goals are long-term.
Freebies, like loss-leader sales are designed to entice add-on-sales, build brand awareness and acquire new customers by introducing them to your products.
To get the maximum value out of give-away programs, the savvy SL marketer should: