Is offering a free product a good way to generate more business?

Absolutely, it's called the freemium model. Give stuff away for free as a hook for upsells or future custom.

It's a risky strategy, get it wrong and you give away more than you make, but its a valid business model and one we adopted from day one.

Like Steve says it's definitely something that works. I notice most Business coaches work like this, offer free advice or a free eBook then assuming you benefit you will want more. I guess it's like supermarkets having lost leaders, they get people in the doors then sell them more expensive items that make them money.

I also think that what's important is to draw a line between what you're offering for free, and what needs to be paid for. I believe it's better to give away an ebook that's entirely free, and then charge for some services as a follow up, as opposed to a model, where you can only have one part for free, only to realise that you need to buy access for the remainder of the book half way through... 

Just remember to construct a valid strategy, and you'll be fine!

How very true...no-one wants to feel like they've been tricked! Imagine writing a compelling story then only revealing the end if you pay extra...oooh now there's an idea. Ha. 

Thanks for all the comments. I am offering a choice of free gifts to my customers if they can collect some orders for me from their family and friends. I will see what happens. 

Originally Posted by abfabcards

“Thanks for all the comments. I am offering a choice of free gifts to my customers if they can collect some orders for me from their family and friends. I will see what happens. ”

Please do let us know how it goes! 

Just seen this and thought i would add my 2 pennies 

I have a friend that uses Groupon and similar sites to get cheap deals. Obviously the idea is to hook you on an idea and you go back and pay full price for product/service but she never does.

Freebies are great but you are always going to get an element of people that will just look for the bargains/freebies and have no intention of coming back or paying.

Talking of which - did someone mention freebies 

Surely, there are people who will just take and not want to buy more. However, if they really like the product, and they'll need it again, I think they will come back for more.

Yep good point 

I wasn't saying it was a bad idea per-say, just its very hard to weed out the users and concentrate on those that will (hopefully) become profitable.

Anyway, Paul - about those freebies