Can You Make Money By Giving Things Away Free
When you broach the subject of giving things away for free, or accepting them, for that matter, the question normally arises as to why would someone do this? And there is not a clear answer in many people’s opinion as to why would you start a business to give things away for free. As a matter of fact, the mere mention of the word free is promptly thought of as cheap goods or second hand services. On the contrary, free things are very valuable in the field of internet marketing. The stigma of free as cheap or easy to come by has to be thought out better when you look at the opposing factors to be found, because many marketers make lots of money on those keywords and opportunities with free things attached.
The idea itself is called Cost Per Action. As defined by Wikipedia:
Cost Per Action or CPA, (sometimes known as Pay Per Action or PPA), it is an online advertising pricing model, where the advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement.
Direct response advertisers consider CPA the optimal way to buy online advertising, as an advertiser only pays for the ad when the desired action has occurred. An action can be a product being purchased, a form being filled, etc. (The desired action to be performed is determined by the advertiser.)
CPA thus defined is different from all the other CP_ terms that are used, even Cost Per Acquisition, because it is somewhat broader in meaning, but not essentially different. The advertiser determines the action, and the value of the action, which is relative to each reader at the time they read the advertisement. Similar to basic economics, cost is defined in Encyclopedia Britannica as the measure of the alternative opportunities forgone in the choice of one good or activity over others.
Which may be different for each person and therefore a value is difficult to place on it because people react differently to situations and opportunities differently at separate times. For example, at one time you may be able to forgo the pleasure of eating out with friends, whereas on a Friday evening, you’ll be hard pressed to skip going out just for the time being. Or, say you need to replace an appliance that broke and you would rather save the money. But on the other hand, if you know exactly why you want the appliance and have a recipe for a gourmet meal and a date with Brittany Spears to boot, you’ll really want to get that appliance. That’s something like economics works at any given moment. The Encyclopedia Britannica goes on to explain:
Lastly, a distinction can be made between social and private costs. Only private costs are registered through the price system; for example, a producing firm pays the costs of such inputs as labour and machinery, but society bears the costs of damage done to the environment by the production process.
So, practically, you’ll have to use your imagination to determine why a person would want to go into business to give things away for free. The concept is very well documented and tried by many companies. If you do a basic search for the keywords cost per action, you’ll find several companies ready to set you up with part or full time employment to do their requested actions and earn an income from that.
It seems logical that the idea would be similar in nature to corporations setting up several types of people for minimum wage employment or a standard amount. That notion is not too difficult to understand. The concept is very similar.
Also when you weigh the advertiser’s wants at the time of contact with the consumer, his wants will be very simply to accomplish a registration or lead from the contact. The customer actually wants to forgo paying the advertiser and therefore will do what is required to get the free item, ebook, course, or software discussed.
The conversion is not necessarily a sale, but an acquisition of a service or registration that happens to be another want of the advertiser mentioned that may have nothing to do with the action being taken at all. This concept is much like Perry Belcher talked about in his new ebook 3 Big Ways to Monetize Social Media when he recommends that you be an affiliate of every program on the micro-review page so that when the customer decides yea or nay to the offer, they may decide to go with a like offer on the same page and you’ll get that reward too. Or you could be JVing with your competitor and they decide to go with your competitor, you can be an affiliate of that program as well and still make the commission yourself. There may be several reasons why a marketer would give things away for free.
Another example I’ve seen in new memberships that are springing up is in Pyrabang. They call themselves the People’s Media because the advertisers are having more control in deciding what to advertise than the publishers are. You can post interesting news or tidbits of interest and have that information passed on to thousands of people, just because you thought to bookmark it at Pyrabang. The members actually vote on the content and tip it up or down, recommend it or invest in it. The monetary values are symbolically changed also and the paradigm shift is toward the people who post content and not on the publishers who actually sell the goods and services. This is another type of CPA model because there is no actual money passing hands, only the vote and a bang, which amounts to one hundredth of a dollar.
Researching the different types of CPA causes me to understand that the CPA is not a scam hype idea in itself, but can be implemented with proper functions and processes as a particular type of business model. The proof only being in the income you receive from accomplishing success. To note, there are several companies and marketers that have been very successful with this type of model.
Creating time freedom with creative achievement at http://www.proposalprospecting.ws
Free Report And System That Gets You Clients Without Paying Exorbitant Prices, Social Media Training Included http://www.thefundedplan.com
Written by Blogmaim - Get a Blog$uccess Blog For more low/no cost niche ideas Go to Niche BlogsSee my featured Squidoo Lenses Social Web Media and Green iLifestyle in 3D
Earn multiple streams of income from home without paying for leads. Get your Free copy of the New Rich Report and Sponsoring System
Try this unique system for generating leads and traffic to your offers BZ9 Url Shortener and Redirecting Service Need Keyword Research Help? Get a little or a lot here Free Traffic System
Free Content, Free Research, Free Money?
Submit to 10,000 blogs, outsource your article writing for free with MyArticleNetwork
Exploding Safelists, email contacts pop up like popcorn, with a Social Network too SuperListExplode and Email the Entire List Once Daily HotSpot Mailer
The New Monster Mailer in Town is Green-EList (GEL)
Use 11 Submitters with an upgrade at HalloTeams join the Red Team, or use it free and get more traffic.
Green Elifestyle niche designed to connect the avid health nuts and athletes with the finest nutrition and fitness products around www.OrganixHope.org
Get your own Free website designed to make-money already and choose your brand name products with 90+ pages to add your own content to ProfitMart by Design/ProfitMart Select
{ 0 comments… add one now }