What is a Free Product Flow?
Sales Flows are powerful mediums that not only turn your visitors into customers, but they also have the potential to CREATE customers out of visitors especially those who just clicked your ads out of curiosity. There are many approaches to create winning sales flows and many strategies to optimize it as much as there are many types of flows.
All these sales flows, if built around data and executed properly, are valuable tools that maximize ROI and bring in the profit. One such type of flow is a free product flow.
A free product flow is basically founded on the premise that since a customer got something for free with complimentary shipping to boot, they are justified to purchase something else to maximize that since they got something for free!
Examples of Successful Free Product Flows
What does a successful free product flow look like in real life? From e-books and web tutorials to small products in demand such as hair vitamins and camping equipment, the key to successful free product flows is to know your economics. Understand important factors in addition to ROI, including lifetime value vs. gross profit and average order value. As you keep an eye on these types of flows, you’ll see what works in building long-term customers.
Why They Work So Well — Potential for Upsells
The key word here is FREE. And who doesn’t want a free cool product, right?
Add to that the lure of free shipping and your ship is ready to sail! And while they are at it, the lure of a free shipping cost offer has the potential to convince them into availing upsells. Not only did you get your ROI, but you profited from it as well!
Just because you offered a product for FREE.
Where The Customers Are
Of course, your sales flow won’t see the light of day without proper promotion or advertising. And most free product flows thrive through advertising on social media networks like Facebook. Paid Advertising on social media channels like Facebook lets you acquire a lot of customers quickly and into your email list for marketing purposes. Why? Because most customers use social media channels as their virtual hangouts. It’s where they talk to friends, catch up on news, post their status updates, etc.
If you’re already a pro at creating and building free product flows, there still may be something to learn here. Reviewing and touching bases with what you know is always useful. If you’re still a beginner, then this guide will teach you the basics and everything you should know about building and running a successful free product flow.
Find A Product To Give Away
The first step is to find a product cheap enough to make a breakeven on cost of goods + ad spend + shipping. But hold your horses! This part needs some careful thinking and considering.
Consider the following key points in picking out a product:
- Fits right in to your niche. This category should be a no-brainer. Of course, it has to be something related to your flow’s niche.
- It’s something small. This is important because you’ll also be shouldering the shipping cost for the item.
- It’s something that people buy in bulk.
- It’s cheap to acquire. This is something you should consider since you’ll be giving it away and you’ll have to have/acquire it in bulk.
- It’s something that potentially costs more when bought in retail stores.
- It’s something that you can get from the manufacturers themselves. The reason for this is so you can add your own brand to it, as compared to buying it from distributors.
- It is something easily identifiable and is widely known in the market.
- It has mass appeal to your market.
Let’s say your target market consists of women in their 20’s to 40’s, who are always out for work, for social events, to hang out with friends, etc. What’s the one thing they might need? It can be something they will want to use every day, like makeup.
And for most ladies on the go, they’ll want something that has everything they need and that will not potentially bulk up their bags. A good product to consider in your free product flow is a makeup kit if you take all those points into consideration.
Have The Numbers Ready
This is by far the most important part.
To profit from cold traffic, you need to understand the ‘optimization metrics’ involved in your flow.
Optimization metrics are the ‘micro’ metrics that you can optimize to increase your overall ‘macro’ metrics, like profit and ROI.
For example, if you’re running Facebook ads to a Free Product Flow, you will have:
- A Cost Per Click (CPC) and a Pay Per Click (PPC) advertising budget
- A percentage of people who opt-in for your free product flow offer (leads)
- A percentage of people who cover shipping for your FPF offer (customers)
- A percentage of customers who buy your order bump up-sell #1
- A percentage of customers who buy your next page up-sell #2
- A percentage of people who don’t buy your up-sell but do buy your down-sell
- Price points for each of your offers
- Costs to manufacture and ship out your FPF offer
- Costs (merchant fees) to process payments – For example, 2.9% of sales plus $0.30 per transaction (if you’re using Stripe or Authorize.net)
…and each of the above metrics will impact your ROI.
If this is all a lot of work, we can help. All we’ll need is this info:
- Cost of goods (how much did you pay the factory to manufacture 1 pen for example)
- Usual shipping cost (for each individual product)
And we’re off to the races!
We have created over 22 free product flows for our clients in the last year alone and the economics never failed. This is because every email address you gain (either as a lead or customer) on a free product flow can continue to be in your email system. This contributes to LTV.