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How Giveaways Can Help Increase Your Revenue

Although it may seem counterproductive to give away your product or service for free, giveaways and related contests are a great way to increase your business in a short amount of time.

Each customer you have will have a value, usually in a dollar amount that the average loyal client will spend on your product or service in a lifetime. By offering a small sample as a prize to new customers, you are gaining a new lifetime value with each new client, far outweighing the cost of the prize itself. So how do you have an effective giveaway? Follow these simple tips to boost your revenue and gain new customers.

Use social media. These days, social media posts are some of the most viral on the Internet. A Salt Lake City SEO expert will be able to create engaging content for your social media for each day of the week and include a steady stream of small giveaways as incentives for spreading the content over the web. Asking for “likes” and “shares” before being eligible for the prize will help you increase your reach.

Offer bundles to give the illusion of a higher value prize. Some products in your business may be very valuable, but not necessarily appealing on an aesthetic level. For example, a bundle of lesser valued products that equal the same amount as a more expensive singular product will give the idea that you are giving away a larger prize. Most people will see the bundle as a greater value, and something worth entering your contest to win.

Offer more than one winner. If you have a secondary prize or offer the prize to up to two winners, your customers will see this as a better opportunity to win. If you want even more people to get a feeling of “instantaneous winning,” offer a discount code for your product or service with every email address acquired along with the contest. That way, each entrant gets the feeling of “winning” even if there are only a few actual contest winners, and will be more likely to sign up.

Be clear with your rules and regulations. It’s important to state not only the legal aspects of your giveaway, such as no purchase required, or a limited number of entries accepted per contest but also what you intend to do with your customer’s information. If the contest merely requires an entry, state that. If it requires an email address, be sure to add what you will be doing with that information, or more specifically, what you will not do. If you are offering a service or product based on an entry such as a favorite baking recipe or tradition, explain how you will use the winner’s story in your upcoming campaigns. This will allow more people to trust you with their information.

So how do these contests help to increase your customer base? In three ways.

  1. In theory, people feel compelled to return the favor when given something for free, such as purchasing products.
  2. They are trying your product risk-free and may be so impressed that they become loyal customers on their own.
  3. Statistically, nearly 30% of people who enter online contests will sign up on the email list.


Article Provided By:
Adaptivity Pro Web Design
Salt Lake City Utah
P.O. Box 951049
South Jordan, UT
o: 801-512-2006