Does Your Startup Give Away Too Many Freebies?

For many bootstrapped businesses, liberal giveaways could be the icing on the cake of financial downfall. If your freebies aren't part of a productive marketing investment, you're probably doing it wrong.

We spoke to a few experts and businesses to get an idea how startups should change the way they look at freebies.
1. Your freebies should match your brand.

For BarkBox, a startup that assembles and ships monthly packages for the pup in your life, maintaining brand identity is key.

"We're kind of an irreverent, silly company, so our marketing stuff and giveaways match that," says Chris O'Brien, puplick relations director at Bark & Co. "Our aim is to make dogs happy and healthy. So if we're going to discount BarkBoxes with coupon codes, we make sure that it benefits dogs."

Basically, it wouldn't make sense for a company like Bark & Co. to be giving away, say, human watches. Bark & Co.'s quirky giveaways and freebies align with the brand and products its customers have come to know.

2. Don't give away your best sellers.

While handing out free iPads with your sticker on the back might make your booth the most popular at the conference, it's not going to help in the long run. For SparkFun Electronics, an online retail startup that sells electronic components and creative building kits, there's a delicate balance between what to give out and what to keep in inventory.

"We tend to give out products that are low risk and can last for multiple events," a SparkFun spokesperson told Mashable. "We do have a lot of free swag, but we're not giving out our top sellers."

3. Know your audience.

While SparkFun and Bark & Co. are established startups, the team at Kiwi Wearables makes due with a smaller, newer team.

"With freebies, from a founder's perspective, you have to get some kind of return," says Ashley Beattie, vice president of marketing. "I'm not going to get much value from you if I'm giving you a t-shirt. It's about making sure the right people are getting your product."

Kiwi has given away development kits at development-centric events, such as hackathons, making it more likely that their market audience gets their product.
4. Make freebies work for you.

Though products like t-shirts and pens will make for a nice goodie bag, they aren't going to do much for your business' future.

"I saw a booth that gave away freebies if you tweeted about them," Beattie tells Mashable. "Creating viral products like that allows you to analyze your audience."
5. Cut down on branding.

"Think about when you go into a store; what do you want to pick up?"

According to Morrill, it's important to get value out of every single piece you give away, whether that value is in driving awareness or driving sales. If you're creating and giving away products that people don't want, it's likely a waste of resources.

"The best giveaway is one that creates community," says Beattie. "You're always going to be in a limited resource situation, so if you're just giving away material, you're probably wasting money."

Source:http://mashable.com