Science Fiction and Fantasy publisher Tor.com recently completed an experiment with distributing free e-book downloads. The publisher used the free downloads to promote a new Science Fiction community complete with blogs, bookmarks, etc. To encourage engagement, only members connected through the newsletter were provided download access. Participating author John Scalzi noticed a 20 percent increase in sales of his downloaded title and more importantly a 30% rise in the book's sequel. LONG LIVE FREE. LONG LIVE FREE.
Free items - a tactic previously used with success by performing artists Radiohead and NIN - are an effective method for rewarding dedicated customers. However, there are several important considerations before diving into the "free" model as demonstrated by a minor-backlash to the Tor experiment. Thanks to TeleRead for a great synopsis of Tor's problems and I hope to accurately generalize the lessons below.
Clarify Free. We have all heard the adage "nothing is completely free." When providing free products to your customers, readers, or evangelists, express the terms of the transaction. Tor provided teasers to novels but was not ready to offer sequels to their hungry readers.
Impress Your Intentions. Freebies are intrinsically linked to promotion for another revenue generating service or product. How does the free item remind recipients to continue their relationship with your company? Overtly? Subliminally?
Respond Politely. If a recipient misinterprets your message, respond politely. Remember, the disgruntled person respected your brand enough to engage with the product and is most likely a future customer.
Summary of this post: Free enticements are powerful but dangerous. Be cautious about the precedent created by giveaways.
