When it comes to making money online you can give away free stuff and turn them into an Internet income. Here are three ways you can do that.

1. Build your mailing list. Doing email marketing is a proven way to make money once you have a responsive list.

This is why you see so many Internet marketers giving away free ebooks, free reports, and access to free webinars. The trade off is the website visitor must give that Internet marketer their name and email address to receive access to the freebie they are offering.

Once you have a mailing list you can send offers out to it and sell products that earn you a commission. Affiliate marketing is a good place to get products that you can make money selling.

2. Take a free tour. This is a common tactic used in network marketing opportunities. You also see it in membership sites.

Let the prospect test the opportunity out for free for a certain period of time. In some opportunities they might charge $1 for one week and then if the prospect doesn’t cancel they are billed full price on a regular basis.

The idea is that if the opportunity is worthwhile letting them check it out before they have to pay is a good way to enroll new members. In network marketing you make more money when you build a large downline.

Once you have the few personal individual members enrolled, and they are working on building their own group, you can make a lot of money. Everyone uses the same strategy of giving away a free tour.

3. CPA Offers. This could be something as simple as having a website visitor provide their name and email address. There are actually cost per action offers that only require an email address for you to get paid.

You are not selling anything, but rather you are promoting a specific offer. Most affiliate companies that do this type of affiliate marketing have excellent landing pages that you can promote.

There is no cost to the website visitor and you earn money once they complete the specific action. You just spend your time marketing the landing page.

As you can see there are ways to make money online giving away free stuff. This is a proven strategy for doing Internet marketing that any one willing to work at can make money.

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Promotional risk covered promotions open up possibilities to offer larger prizes than most companies can afford, or would want to take promotional risk on. These large prizes are proven to increase registrations of online users, traffic in stores, and sales at any given time. Strategies including promotional risk coverage also build large brands through consumer loyalty. Everyone appreciates winning something, people enjoy watching others win, and everyone remembers who was offering the big prize.

Protect your company from  the promotional risk of over redemption on free promotional offers.

In it, he talks about how “free” is often used as promotional incentives. “Free” is often an integral part of marketing promotional incentives, used as a way to get people to try our products, to buy something else, to showcase our products or services, and even to do some work for us.

Here are the four basic iterations of “free” Anderson discusses in his book.

* Direct cross-subsidies – These are promotional incentives that get you to pay for something else. It could be a buy-one-get-one-free item at your favorite clothing store, or a free “prize” given to you by a car dealership in the hopes of getting you to buy a new car. It could even be a cell phone company giving you a free cell phone because you’ll pay for the minutes, the text plan, and the data package.

* The Three-Party Market – With three-party promotional incentives, someone else pays for you to have access so you can use the program or product, in order for you to be exposed to their product — your basic television and radio mass media setup. I get to watch NBC’s “The Office” for free, but I have to watch the ads that go with it. Or I can subscribe to a free trade magazine that covers my industry, but with these promotional incentives, I have to make my name and address available to advertisers. The advertisers need us to consume that product, but we need the advertisers to pay for our access.

* Freemium – One of the promotional incentives we’re most familiar with: we get a free sample to try a product: the food samples we get at our local supermarket, as a way to entice us to buy the really huge bag of pizza rolls. Or in the digital world, giving us limited access so we’re willing to pay full price for total access. Anderson mentions Flickr.com as an example of the freemium promotional incentives. We can use Flickr for free, but can only include 200 photos in our general timeline. If we want to have all of our photos available, and/or we want some premium features, we need to pay $25 per year.

* Nonmonetary markets – The idea that people give away things with no expectation of payment is not one of your regular promotional incentives. Wikipedia is one example. Hundreds of volunteers have created millions of articles in 10 languages about a variety of topics. Wikipedia doesn’t charge for this access, it’s free. Sure, they’ll take donations, and in fact, this past Spring, they had a donation drive to help cover the costs. But there’s nothing else. No banner ads (three-party market), no limited access (freemiums), and no direct cross-subsidies (“get Wikipedia free if you buy a copy of Photoshop”).

It’s this last version of “free” that most people are becoming used to, which can make your own promotional incentives campaign a success. Since marketing promotional incentives in the digital world is cheap and easy, there are different ways people can use them to promote their services (i.e. a Freemium).

One example of promotional incentives is when a consultant posts free articles on her blog as a way to not only showcase their knowledge, but to get a potential client to consider them. Or a book author who offers a free audio version of his book on iTunes and a Kindle version, knowing that if people get the free version, they’re more likely to pay for a real copy too. This is one of the latest promotional incentives to hit the publishing world, and one that more and more authors are using to boost their own sales.

What kind of promotional incentives are you using to drive customer traffic? How are you getting sales leads? Have you thought of using free items as a way to do this? Consider all of the options when you launch your own promotional incentives campaign.

Foursquare, a smartphone application and website, is actually a location-based app that turns your entire social life into a mobile campaign. Foursquare allows participants to take advantage of discounts, special promotional offers to mayors (people who have checked into a location more than anyone else).

Jagtag launched a mobile campaigns promotion for Axe as part of the launch of their newest addition to the Axe fragrance portfolio: Axe Twist. The target audience of this mobile campaign was males between the ages of 18 – 24, a group that is more than known for its use of cell phones and smart phones.

Because Jagtag is the provider of video, audio, images and text to both smartphones and standard phones, mobile campaigns like this are not too difficult. Marketers who want to try mobile campaigns would do well to find an agency already expert at creating their own.

Starbucks, the leading competitor in coffee today, gets the importance of mobile campaigns. In fact, they partnered with Foursquare, which gave mayors of the individual stores a special promotional offer: “As mayor of this store, enjoy $1 off a NEW however-you-want-it Frappuccino blended beverage. Any size, any flavor.”

On a smaller, but possibly more successful level, Scotty’s Brewhouse of Indianapolis, Indiana credits social networking strategies and mobile campaigns for a majority of their success. Back when social media was taking off, owner Scotty Wise cut his advertising and marketing budget for his 6-location chain, and focused solely on Facebook, Twitter and Foursquare, saving a total of $250,000. Their concern was that none of the ad salespeople could promise him an ROI on their ad spending. So rather than blow $250,000 on techniques that could not prove an ROI, Scotty created the restaurant’s social media and mobile campaigns, and managed them himself. The long and short of it is that Scotty’s has seen an increase in business through social media, all of which is measurable, and he has not had to lay large amounts of cash to see the increase.

These are just a few of the many marketers who have found success through mobile campaigns. They focus on the new advertising and marketing channels, like mobile phones, targeting their audience, forming relationships, and giving them some entertainment and additional value in the process.

Some of you may be old enough to remember the Green Stamps consumer loyalty promotion in the 60s and 70s and earlier. These consumer loyalty promotions actually started in the 1800s as a way to reward customers who paid with cash. Later, stamps were given to everyone who made a purchase. The stamps could be redeemed for store discounts, or for merchandise. The S&H Green Stamps were very popular in the 1960s and 1970s, and anyone in their 40s and older can remember their parents’ or even their own collections of the green stamps.

Nowadays, rather than giving stamps, many stores just give discounts, but only if you’re a member of one of their consumer loyalty promotions. You show your little card — usually kept on a keychain — when you check out, and they give you a discount on your groceries. Spend enough money, and the reward is usually a discount on their gasoline, in addition to the initial savings. Most people, about 75%, carry at least one of these consumer loyalty promotions cards.

The upside of a consumer loyalty promotion is that you can amass all kinds of purchasing information about your customers with their permission. Want to know how many people have recently begun buying diapers? Or cat food? Or prefer certain brands of beer? Direct mail marketers love to know this kind of information, and will pay for your consumer loyalty promotions lists just to find out new ways to get your customers to buy their products.

But consumer loyalty promotions are not just about selling mailing lists. They’re marketing tools. They encourage people to come back again and again, to earn the rewards you’re offering after 10 cups of coffee, 25,000 miles, $100 spent at a grocery store. The rewards in consumer loyalty promotions are there for you to continually show why your customers need to keep coming back. They’re not just a trick; they show your customers again and again why you’re their provider of choice.

In fact, that’s the point about a good consumer loyalty promotion: you can keep track of your customers, reward loyalty with prizes and discounts. You can also figure out ways to convert your occasional customers to loyal customers, and your loyal customers to raving fans.

Back in the 1990s and early 2000s, travel consumer loyalty promotions were all the rage. You got airline miles for flying a certain airlines, miles for staying in allied hotels, and could even double and triple those miles if you paid for the flight and night with your miles-earning credit cards. Some days it seemed like you needed a Ph.D. in customer loyalty management just to keep track of it all, but there were news stories of people who would take unnecessary flights just to reach the 500,000 mile platinum level for the next year.

If you’re thinking about setting up a consumer loyalty promotion of your own, be sure you give your customers something they want. It’s not enough just to give a discount, or a cheap piece of merchandise no one wanted in the first place, like the proverbial toaster for opening a new account. Figure out why your customers are there in the first place, and give them that. Sandwich shops give free sandwiches, airlines give free travel tickets. Give your customers something for free when they spend a certain amount of money or buy a specific number of items.

Referrals are another great form of consumer loyalty promotions. Customers are not just coming back themselves, they’re bringing their friends. If a customer comes to your store once a week and brings a friend who now comes once a week, that customer has actually doubled their value. They’re already fans, and by bringing in their friends, they will actually become more loyal to you and your company.

consumer loyalty promotions are a great way to not only thank your customers, but to market your company at no additional costs other than the rewards you gave out for your efforts.

Digital brand promotions continue to spur billions of dollars in annual sales for product suppliers. By offering promotional incentives, through mobile promotions, online promotions, music download promotions, and skins promotions, companies can tap into a vast pool of consumers that would otherwise be all but unreachable.

Generation Y is responding to digital promotions.   They are defined as the 10-30 year olds with more discretionary spending than their parents have, according to Author Kit Yarrow of Gen BuY: How Tweens, Teens and Twenty-Somethings Are Revolutionizing retail. On NPR this morning, she noted the average number of text messages sent by a teen, during a given month. The number was 2,273 text messages. They communicate in email, but chat more often, and they are active users of social media and video. Gen Y uses search engines daily. Schools introduce interaction with web 2.0 applications as early as elementary school and access to the internet is a requirement in secondary education. They are comfortable online and have chosen to use the medium over any other form of communication. If you are working in marketing, you can not afford to miss this generation which Yarrow coined Gen BuY. Online marketing has changed. This new generation expects you to communicate with them.

Promotional Currency brings a powerful combination of promotional incentives, entertainment promotions, music download promotions, ringtone promotions, skins promotions, mobile promotions, online instant win games and artist licensing – offering brand partners the first one-stop source for all online promotions, wireless and digital promotions.

Promotional Currency’s integrated approach incorporates cutting-edge promotional marketing strategies and the latest digital currencies with a complete backend management system that includes delivery, hosting, co-branding and fulfillment. The turnkey promotional marketing solution also features a proprietary promotional risk coverage service, enabling them to offer brands the budget certainty they require.

Incorporate these affordable digital brand promotions into your promotional marketing strategy today and watch your customer database soar!

Despite the growing popularity, a lot of brand sponsors and product suppliers fail to fully appreciate the potential of launching targeted marketing promotions. They see digital promotions and promotional incentives merely as a way to increase sales. In reality, their potential extends much further and remains largely untapped.

Introduce New Products By Launching Marketing Promotions

One of the core challenges for brand marketers and retailers trying to launch a new product is to encourage consumers to try the product. Doing so requires consumers to modify their shopping behavior, which few are willing to do without an incentive. Marketing promotions can incentivize your target audience and motivate them to try the product or brand you’re promoting.

For example, think back to the last time you visited a large warehouse store, such as Costco or Sam’s Club. Strolling through the aisles, you probably saw several new items that offered generous coupons or other incentives upon purchase. In the food section, you likely saw employees giving out free samples of new foods and drinks. These are examples of marketing promotions that are designed to introduce new products to the marketplace. And they’re merely scratching the surface of the potential of promotional incentives.

Marketing Promotions Improve Brand Awareness: An Example

On Black Friday, Target launched a series of exciting marketing promotions for their customers. The marketing campaign was designed to extend their brand, build excitement in the marketplace, and generate a surge in holiday sales. It began with a $10 gift card given to every shopper who spent $100 during Black Friday. This was followed by their Giftacular Sweepstakes during which $200,000 in gift cards were awarded. Lastly, a Target Give and Get Sweepstakes offered consumers a chance to win a $10,000 grand prize.

These marketing promotions, in addition to generating excitement and triggering sales, thrust Target’s brand to the forefront of consumers’ minds. In doing so, the promotional incentives became a key component of Target’s ongoing customer loyalty programs.

Use Marketing Promotions To Attract Customer Data

Besides introducing new products, improving brand awareness, and building customer loyalty, you can use marketing promotions to attract valuable customer data. This data can be leveraged for future marketing campaigns.

For example, suppose your brand includes products in multiple categories, such as shoes, clothes, and cosmetics. Chances are, your customers will be receptive to buying related products from you within the same category. They’re also likely to remain loyal to your brand across categories. That is, those who buy your shoes may also buy your clothes and cosmetics (with the right promotional incentives). Consider the potential…

Marketing promotions can trigger an immediate response from your audience, providing you not only with customer contact information, but sales-related data. If you mine this data correctly, you can segment your customer base and design marketing campaigns that target specific customers. The tighter your targeting, the better the response.

Key Factors To Consider For A Successful Campaign

The success of your marketing promotions is measured by whether you meet your objectives. Brand managers often launch digital promotions and customer loyalty programs without having a clear idea regarding their goals.

For instance, if an increase in sales is your objective, quantify it by dollars or percentage increase. If your goal is to build a customer database for future marketing promotions, determine the database’s target size and breadth of data. If improving customer loyalty is your aim, success can be tied to an increase in sales volume by customer segment.

Also, depending on the type of marketing promotions you’re planning to launch, you should consider using promotional risk coverage. Doing so will protect your budget in the event of a larger-than-expected redemption rate. It’s also a cost-effective way to offer your customers the chance to win enormous cash prizes.

Marketing Promotions: Tapping Into A Massive Revenue Stream

Brand sponsors, marketing experts, and retailers have discovered that marketing promotions give them a unique way to reach a huge pool of consumers. In doing so, they tap into a lucrative revenue stream. But, that is merely the beginning. When you offer exciting promotional incentives to consumers, you’ll build brand awareness, increase sales, and attract valuable customer data. And if you harness those things properly, they can drive lasting sales with increasing momentum.

Digital music is a powerful promotional incentive because there is never a shortage of desired content. New artists rise to the top of the charts on a perpetual basis. That allows you to tap into an endless supply of popular music to build your brand, acquire new customers, and drive ongoing sales.

With the number of portable media devices at an all time high and growing due to the large number of new music capable mobile phones, music promotions have a broader reach than ever before.

Music download promotions can be delivered via a secure code and url. The codes are well-suited to a number of delivery methods, such as on-pack or in-pack, handed out via cards, or delivered via email. The landing pages and download sites can be customized to reflect the full personality of a promotion sponsor.

With over 3000 music download promotions successfully executed, Promotional Currency is a promotional partner you can count on to deliver. Promotional Currency’s integrated approach incorporates the latest digital currencies with a complete backend management system that includes co-branding, delivery, hosting, and fulfillment. These turnkey mobile promotions are created with a proprietary promotional risk coverage element, enabling them to offer brands response-based tactics within a fixed budget.

Incentive customers to respond through music download promotions with promotional risk coverage.

Creative Ways To Leverage Promotional Incentives

Giving away free items is one of the most effective ways to stimulate a response from your target market. Nothing excites consumers more than the chance to receive something with a high perceived value for free. There are a variety of ways in which you can use free promotional incentives to motivate your audience to take action.

You can give your customers something for free in exchange for trying a new product or service. For example, Starbucks recently launched their Via brand of instant coffee and used promotional incentives to spearhead the effort. They organized a Via Taste Challenge to entice customers to try their instant brew. Customers in the Los Angeles area were asked to order a cup of Via. In return, they received a coupon that could be redeemed for any cup of coffee in the future.

You can also use promotional incentives to create a surge in sales volume around your brand. For example, Estée Lauder launched a promotion in October 2009 called “Your Beauty. Your Style. Your Profile.” They invited women to visit participating counters and receive a free makeover and photo. The photos were emailed to women so they could be uploaded easily to dating and social networking sites. The Estée Lauder logo was in the background of each photo, strengthening their brand.

Using Promotional Incentives To Collect Customer Information

In the Estée Lauder example, the promotional incentives were emailed to women who received makeovers. That means in order to receive their digital photo, women had to provide a working email address. This mechanism helped Estée Lauder to create a database of customers to whom they could market their products in the future. For example, they can email these customers a targeted holiday promotion focusing on the products that were used during the makeovers.

Mobile promotions such as music download promotions can offer this same advantage. When consumers visit your customized landing page to download your promotional incentives (e.g. free music downloads), you can require them to provide their contact information. In doing so, you’ll build a database of customers for future marketing campaigns.

The Advantage Of Delivering Promotional Incentives Online

When your promotional incentives are delivered online, your expenses are limited to whatever it costs to fulfill redemption. For example, suppose you’re offering free music downloads to people who spend $70 at a certain clothing store. Provide a website address and promo code on their purchase receipt that directs them to your download site. They can redeem your promotional incentives online, which helps to minimize your costs while exposing customers to your brand and products.

Or, suppose you want to deliver a “buy three and get one free” promotion to customers’ mobile devices. The cost of delivery is practically zero. The same is true for launching instant win games, skins promotions, offering free ringtones, and other digital promotional incentives. While the cost is low compared to traditional advertising channels, the impact on your audience is high.

Why Promotional Incentives Are Effective

Brand sponsors realized long ago that promotional incentives were a potent trigger for stimulating a response from their market. Each year, billions of dollars are spent to launch promotions that improve brand awareness, drive traffic and sales, and strengthen customer loyalty.

The reason promotional incentives are so effective is because people always enjoy the chance to receive free products they consider valuable. Whether the incentive is a free tank of gas, limited access to an online fee-based service, or free song downloads, consumers are happy to participate. In some cases, they’ll increase their purchase order or buy new products in order to take advantage of a promotion. In other cases, they’ll willingly exchange their contact information to receive your promotional incentives.

Your marketing campaigns are ultimately designed to sell your products. The challenge is to motivate your audience to buy them. Digital promotional incentives will excite your market, educate them about your products, and encourage their loyalty to your brand. And they’ll do so at a lower cost than using other advertising channels. Now is the time to explore how promotional incentives can drive traffic and increase sales for your company.

Promotional Currency is THE leading digital promotions firm, merging digital technology, artist licensing and promotional risk coverage to deliver turnkey, fixed-cost solutions for the promotional marketplace.  Promotional incentives such as music download promotions, ringtone promotions, mobile promotion, skins promotions and online instant win games and sweepstakes are powerful, multi-pronged promotional marketing tools build customer loyalty and drive sales.

–Cynthia Walker

Entertain your consumers with promotional incentives to differentiate your brand and boost sales through increased brand interest and customer loyalty.