Free items are everywhere, and there is a reason. They work. But because they often have a catch, many people now distrust freebies. We have tried hard to refer you to good ones throughout this site, and now we are going to give you some tips on how to use your own freebies and giveaways to increase traffic and sales on your site.

We are going to cover two basic areas here: Trust, and perceived value.

Trust is essential, because no one is going to download a freebie that might be loaded with a virus. They won't sign up for an eZine if they are afraid that you will abuse their email address. They are not going to even sign up for a free income generation package unless they are sure that you aren't going to either waste their time, or try to get something else out of them later.

There are four aspects in establishing trust:

1. Be personal and accessible. Give some background on how you got to where you are now. Let them know enough about yourself so that they can identify with you, and so they can feel they know you a bit. Post an email address prominantly on every page of your site, and make sure that you answer any emails that come in which are not obvious SPAM.

2. State your policies clearly. Say up front how you will use any information that they give you, and what you expect in return for the freebie. Then abide by the policy you create, and never abuse it.

3. Avoid hype. Be matter of fact, and avoid using phrases and descriptions that smack of pressure selling. Never imply a time limit unless you can justify it with a believable reason (for example, limited supplies, or a previously stated deadline). Do not exaggerate, and never state that your freebie will help or work for everyone.

4. Be clear about what you get out of it. State your motives. People mistrust someone who says they are doing it for altruistic motives, especially if there is ANY kind of profit involved, and well they should! If you get advertising out of it, say so. If you use a freebie as an advertising tool for a paid version, be clear about that. People are ok with you getting something out of the free item if they feel that the trade off is a fair one, and if they can see what it is you get and are free to choose ahead of time.

A freebie will bomb if people do not trust your motives, or if they just cannot see where you are going to get them.

Perceived value is a different thing than actual value. It is the amount of value that a person thinks something has to them personally. Here is an example:

I market website services. I include a free logo design with purchase of certain things. Now, for someone who already has a logo, this item has a low value, because they do not need it. For someone starting up with nothing though, it has a higher value. For someone who has no money to spare in their setup budget, it has an even higher perceived value. Since I target startups, it is a good freebie to offer, and it costs me only time to offer.

Now, my free logo is offered with services that go along with it, to people who might be looking for it. Such an item would be valueless to someone who was visiting my site to purchase pet supplies. The freebie needs to relate to the topic of the site, or to the products you normally sell.

Information has a lower perceived value than tangible products that have a price tag on them. Especially online, the things that will have the highest perceived value are things that they have to do something specific to get, such as receive a password (if it is more valuable, you protect it), or items that you do for them that are unique, such as personalized services. The highest perceived value is from an item that you mail to them, without charging them postage. Items that you charge postage for will be ignored many times because people do not want ot surrender a credit card number for an item that is supposed to be free.

Whatever your freebie is, it can help to state the sale value of the freebie. Now, if you exaggerate the value, then it will have the effect of making the perceived value LESS than it would if you left it off, and it will reduce your trust rating in the minds of your customers! Keep the stated value reasonable, and it can have the effect of increasing the customer perception of the desirability of the item.

Freebies are used for two main purposes: Advertising, and purchase incentives.

Advertising benefits from freebies when you give away a free version of something that works, but is limited in some way. A more functional version can then be charged for. If you do this, it is CRITICAL that the items that you give away be good quality. They are serving as an introduction to your products or information, and need to reflect the quality of the paid product. If they are shoddy, or too limited, people will buy from your competitor who gave them a better free version.

Purchase incentives are discounts, free items with purchase, or even a freebie which has a discount option built into it for purchase of a full version. Anything which says to the customer, "if you purchase my product, I will reward you with higher value in this way". Again, you must make sure that the incentive relates to the product, and that it has a high perceived value for your target market.

Freebies can be used online in many ways. Here are some ideas of how the power of online marketing, combined with a freebie, can help you build your business on little other than committment and effort.

1. Give something away in exchange for a link. This is a great promotional tool. You can give away images, documents, free software, information (in the form of articles, or opinions), eBooks, eZines, or even entire website designs in exchange for a link from the person you give it to. A certain percentage will not comply, but most will, and you get powerfull advertising.

2. Refer a Friend. Bravenet has a Tell a Friend program, which is free to use. Put that on your site with your freebie, and encourage your visitors to tell a friend about the freebie. Automated word of mouth can be enhanced by a free item.

3. Replicate your business. Replicate your website and modify it so that others can use it to earn. Leave a few links on it that they cannot change, and that brings their customers back to you as well, if the links are well chosen.

4. Certificate or savings code with current purchase that gets your customer a discount on their next order. Use the freebie as a reward for repeat orders.

5. Free gift for referring a customer who makes a purchase.

6. Free gift coupon for new customers - hand them out to existing customers to give to their friends.

Freebies can be a powerful tool, but only if your customers trust that you are not trying to trick them into giving you something that they are not sure they want to give. Give good value, with a benefit to yourself that your customers can understand, and make sure you give them reason to trust you. Done right, they can be a good tool.