If you have ever tried to introduce a new product or service, even one that your customers need or want, I’m sure you have found it to be a stress-inducing, difficult process. Unless yours is an industry that relies on new products like the fashion apparel industry or you are introducing a very inexpensive item, your prospects, even those who have purchased from you in the past, will be weighing the risk / reward ratio. In fact, many new products have gotten off to a very slow start or never reached a sustainable level of sales because the target market felt there was too much risk associated with purchasing an untried, new item. If your prospects don’t see the balance between risk and reward as highly skewed towards the “reward” side, they may not purchase in the beginning, when it is crucial to get it out in the marketplace.

If the marketer can substantially lower the amount of risk, the new product will have a much better chance of gaining acceptance by those customers who are early adapters. Risk-reducing actions can be a limited-time discount, a money-back guarantee, or even a free trial offer of some sort. Of all the risk-reducing actions “giving it away” will get more people to give your new widget a try. While some people will take advantage of this type of offer many, who would ordinarily have no intention of buying, find that they like it enough to return and pay for it.

“Giving it away” can work in any industry, with just about any product from something as expensive as a new model of railroad locomotive for an “evaluation,” to a “spritz” of scent at a cosmetics counter, or a “free trial subscription” of an informative newsletter. With little or no risk, there is a much greater incentive to give it a try. The free trial works even better when it is coupled with a lowered introductory price.

Whatever you have to sell, it is worth “giving it away” to lower the risk so you can reap the rewards when your prospects come back for more.

Larry Galler advises executives, professionals, and businesses to extraordinary achievement. Sign up for his free newsletter at http://www.larrygaller.com. Address questions and comments to larry@larrygaller.com

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