Free Plus Shipping
Free Plus Shipping, and the business model behind it. We are talking about that today. Hi, and welcome. My name is Harold F. Rich, and I’m getting a lot of questions about this free, plus shipping model, and it’s booming or getting started now. Actually started back in early 2016, I would say, and what it is all about is you giving away products for free. The customer just has to pay shipping, or shipping and handling you can call it. And like this, there are a lot of people out there that make a lot of money. So we are also using this business model in our businesses, but we don’t use it to make money. We use it to get free data.
What I mean by that is, so basically it’s a drop-ship model, where you, most of the time, pull in product from Ali Express, that you can buy very cheap. So you can buy the product, and you get the shipping for under four dollars. So, for every product that you can buy, including the shipping, that is below four dollars, that would be a good product, I would say, to give away for free, plus shipping.
So you will find a product that fits your industry, that people could see that is very valuable, and that fits their needs. So you find a product that is below four dollars, then you can still say, depending what you want, but we give it away for $5.99, which we don’t have much profit from it. We calculate it so we can spend some money on AdWords… Not on AdWords … on Facebook, we do most of the stuff. So we calculate a little marketing budget in it, but we don’t want to make money from selling the product.
What we want to do is, we want to collect a lot of email addresses. And we want to drop the Facebook pixel, the remarketing, retargeting pixel, and get our remarketing automation software getting a lot of data. So we have to pick the right target group, of course, for the industries, or for the businesses that we have already. And then we just use the data, which is coming in for our marketing. So marketing our other main product. And this works very well. We can pull in a lot of people that want to get a free product, and they almost get it for free, I would say, because they pay like, $5.99. The disadvantage is that most of the time they have to wait quite a lot of time for the product to arrive, but you have their data. As soon as you have their data, they come into our marketing automatization tool, and the process starts.
So they get a mail some days later, and they get a lot of information we send them to a blog post. We give them some type of discount code. So as soon as they bought the free product from us, they are trapped in our marketing automatization for our other businesses that are all around the same topic, so they all fit together.
This is how we use the free, plus shipping. You can also use the free, plus shipping, of course, to make a lot of money. A lot of people are making a lot of money. You need to find the right product. The key basically, is also to find the right kind of group to get it down. Not just to women, or not just to women who like fashion. You should also bring it down to women that like fashion, about between 25 and 40, and they like these pages, they are reading this magazine. They, I don’t know, they earn more than 50 thousand. And then a lot of parameters that will allow you to have a small, tight group really, but a very focused group. So I wouldn’t recommend to market to millions of people. I would try to keep the target group from three hundred to seven hundred thousand people. Of course, it also depends on how much money you can spend, per day. But usually we don’t spend more than five or ten dollars on one ad a day, and we focus on tight groups, around three hundred to seven hundred thousand people, that are targeted very granularly so that we will reach the right kind of people. And we are getting good engagement, good shares, good likes, and so on.
So, this is very important for us. We do it to get customer data, to get them into our marketing automatization software, to be able to re-market, re-target them, and sell them our other products.
I hope that that was useful. Don’t forget to leave a comment below, subscribe to our YouTube channel. I am giving away one of my new books, Scale Up, that will show you how you can scale your eCommerce business to millions as I have done. And I gift it away for the best comment every week, which you are leaving below this video on YouTube. So I’ll see you tomorrow, and bye-bye.