"Free" Extends into the B2B Space
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May 1, 2000 *3,700 subscribers* Volume 2, Issue 5
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FEATURE ARTICLE

Highlighted Reader Feedback

Given that this is our most controversial trend, we've included 3 believers & 3 non-believers

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The fact of the matter is that "free" works.  It's similar to having a credit card and paying for your products or services at a later date. Free today, pay with interest tomorrow.  It should work well in both the B2C and B2B worlds too. There's a certain "I got over feeling" when you get a freebie-whatever the payoff.  

In my industry phones are given away that cost us up to $200.00. If the consumer stays active with the carrier for 180 days, the commission we're paid ($200.00) is maintained. If the consumer stops service we are decommissioned and are forced to hunt down the buyer and retrieve the phone. It's risky.
(G.M., San Jose, California, USA)  

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Yes, give-aways help provided they bring in additional business. Like in the case of mobile phone operators, or the ISPs wherein they register customers for 3-5 years usage plans 

I think this will work for B2Bs at least in the developing world where the awareness of the Internet is on the rise but the limited purchasing power may not allow easy movement to the Internet. In this case, give-aways of PCs and set top boxes would allow access and thereby business
(Prem)  

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Yes, I feel that companies giving away products or services in the B2C world has been very successful.  This marketing technique can also be effective in B2B.  I'm the Marketing Manager for an executive conference company.  I am always looking for new direct mail, telemarketing, and email lists.  The bigger players/list brokers will usually supply a test list for sampling purposes.  This way I get to test the product (list) before committing to a purchase.  This has proven to be very cost effective for my company. 
(K.C.)

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Businesses in the B2B area will not be impressed by other businesses giving away products. In fact, it may only lead to eroded margins at a time when Internet companies must become profitable.
(S)  

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I don't think giving away products and services for free is a good idea. We are all used to those practically worthless and often futile give-aways used as a means of sales promotion, over decades. So I wouldn't expect a free product as mentioned in your mail being something valuable. Maybe this is an unjustified prejudice but there it is.

As a matter of fact, I do use professional software in my work, and I can't be bothered with checking on all that freeware available; I want to have a clean computer system, too. (In my first years using computers (mainly Mac), in fact I had a lot of free stuff on my system, and I must say that it mainly was there, without being used.)  

On the other hand, I do very much appreciate free web services like newsletters, provided they offer interesting news and above all useful practical tips, not only news about new products of a company (e.g. Excom or Apple or Aladdin Systems - you name them).
(R.B., Siebnen, SWITZERLAND)

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I think if companies give the lowest price, quality merchandise and quality customer service is the most successful technique. Quick response to any problem / question, is the most successful technique. Companies don't care about free product as much as quality of the product or the quality of customer service and the most important respond time.
(Kev Gharibian, Ikos Systems)

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