With Paid ads taking over as a main part of digital marketing, there is actually an alternative that’s much less expensive and more sustainable in the long run. It’s simply about creating an innovative free product or service that will bring the customer to your site. You can later upsell this when you’ve gained traction.
No Need for Ads to Have a Big Brand
Paid Ads, especially Google Ads, are consistently increasing their cost. This is why you need to find another solution that can also give you a better ROI through time.
If you’re familiar with Dropbox, it actually first came out with its main campaign based on Google Ads. Through this, they saw that they were losing money in order to gain a customer via ads. They spent triple the amount the customer was paying them for advertising.
This shows that you are spending more in your first year than what you’re earning. At the same time, the cost of your product usually isn’t just profit. This usually includes the wage of your manpower to the website fees and other miscellaneous fees.
Maximize your Growth Hacking Technique
So you may want to know, what did Dropbox end up doing? Well, they leveraged their growth hacking. They found a way that would bring the customers to their site to make a purchase. They created a free service or product that was a better alternative to paid ads.
Through the creation of something that was free or offered a great promo, people are easily enticed to visit you. From that point, you can upsell them your paid products and services and it’s a lot easier. Why? Because they’re already making use of your product and so they know it’s something they can trust. You are able to build rapport with them and gain a better relationship for the future.
Nothing comes without a Cost
A lot of you may think that well it still costs a lot of money and you’re right. At the same time when you succeed and people are using your paid services, your cost is also going up and a lot more than what you spent on the service. It also usually ends up costing just a quarter of what you end up spending on ads.
It’s also important to track all these costs to make sure you’re making the most out of what you’re offering. You may be able to increase prices of your paid services if you don’t think you’re making the money back on what you spent on the free services.
Be Creative in Marketing
As we’ve said before, there’s no need to spend a lot of money on Google Ads to be big like Dropbox. You can maximize growth hacking and when you have all these free items which may not be the best but just at par with paid ones. From that point, you can create invite flows which is something Dropbox also has. To be able to get more storage, you have to invite more users. This allows more people to be exposed to your brand and it’s actually your current users will work hard into getting you this.
In relation to this, you can use social media to implement the referral via sharing and retweeting. Consumers nowadays are more aware of the value of sharing content and information. This usually helps both sides to gain more followers. This exchange usually brings you a new customer through links to your special offers and blog posts.
When you create something free and something that doesn’t cost a lot of capital or maintenance, you can earn so much more in revenue. HubSpot executed this with finesse in their free e-mail signature generator. This didn’t cost a lot and required zero maintenance. It earned them over seven figures in revenue just from one free tool.
Keep in mind though that ideally you should be doing both growth hacking and the ads. Prioritize growth hacking more because when you stop doing ads, your traffic will also stop most likely.