Actually, if you do it through your website, they pay cash.
HTC Affiliate Program
It gave a known, paying segment of the market somewhere to continue to play a type of game that they no longer had the opportunity to do so where they formerly were.
Almost guaranteed subscriptions.
What kind of business do you market for and how far outside of the market do you go to give free things away?
What kind of free stuff do I get if I want to buy a Lamborghini? I mean, I know I want one and can afford one....
After all, if it's a money issue, what am I looking at Lambos for?
wrongway
OK. The Lambo argument is a bit ridiculous don't you think?
I worked in executive sales and marketing management roles in the entertainment retail and distribution industries (music and home video) for over 20 years including Internet marketing. Broadly speaking AH is simply another entertainment product so it doesn't fall far outside the scope of where I've spent the majority of my career.
I gave away songs all the time in hopes the the listener would return to buy the full product (the CD or album... guess I'm dating myself a little). Of course I'd try to target my audiences as much as possible to improve convesion rates but, for the most part, the freebies were free to anyone with the knowledge to get them. In this environment it's no different. The freebies would be available to anyone however, only those with a predisposed interest would have the knowledge to aquire them; essentially a self targeted audience.
There's a LOT of value in HT doing this and in advertising it through his normal, I assume, targeted channels. The analogy to giving away a song to get someone to buy the album is completely relevant in this case. When I was running these campaigns through targeted advertising I saw response rates as high as 28% and conversion rates in the 10% range although those numbers weren't the norm. Most often I could expect response rates in the 6-10% range with conversions in the 2-3% range. The higher numbers were always attributable to outstanding creative and impactful messaging in the advertising. Regardless, the campaigns were nearly always profitable and the reason that they continued on a regular basis.
In addition to that I gave away a lot of other things, signed guitars, trips to concerts, memorabilia, etc., etc., etc. but the basic "give them a taste" campaign was, for the most part, always successful.
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