the quote from the study comes from Dan Ariely’s book Predictably Irrational. (http://www.predictablyirrational.com/)

Kind regards,

Hannes

We find that when we couple “free” with a broad marketing program that reaches existing customers and potential customers, cause marketing is really a no-brainer, especially when compared to marketing you have to pay for.

In terms of cause marketing, have you found that “free” enables you to implement easier with sponsors? Or do they perceive other “risks” associated with a cause marketing campaign?

John

In a marketing world of SPAM/SCAM emails and ponzi schemes, “Free” is no longer a trusted word. “Free” is sometimes attached with “but” — it’s free but…

Advocates and mentors like you (this is where you pat yourself on the back and say “Damn, I’m good”) are shedding the light on cause marketing and the win-win results for both the for-profit and non-profit organizations.

“People think demand is elastic and that volume falls in a straight line as price rises, but the truth is that zero is one market and any other price is another. In many cases, that’s the difference between a great market and none at all.”

“The huge psychological gap between “almost zero” and “zero” is why micropayments failed. It’s why Google doesn’t show up on your credit card. It’s why modern Web companies don’t charge their users anything. And it’s why Yahoo gives away disk drive space. The question of infinite storage was not if but when. The winners made their stuff free first.”

That’s from Chris Anderson’s article in the March 2008 Wired mag.

Fair enough for the for-profit folks. But is ‘free’ sustainable or even possible for organizations that are already not-for-profit?

Many of you thought for a moment and answered, “Well, yeah. In fundraising nonprofits use ‘free’ all the time. And it works great.”

I’ve got a drawer full of proof at home.

* In my desk at home I have a drawer full of free-to-me address labels from perhaps a half-dozen nonprofits. I’ve gotten pens, bumper stickers, key fobs, notepads, and more.

Nonprofits send out those giveaways because experience clearly demonstrates that an envelope with something free in it generates more than does an empty envelope.

* In the United States the public radio and television are both supported by periodic public appeals that draw heavily on premiums. Donations in a certain range come with valuable items like books, tapes, meals, lodging stays, events with celebrities, and more. The telethon producing charities do much the same, especially at the local level.

* Paper icons, usually priced at $1 in North America, sometimes come with price-saving coupons. And so the purchase price might bring $5 or more dollars in coupon savings. Some charities do much the same with calendars.

* A few months back I went to a free performance from best-selling author and humorist Andy Andrews that was sponsored by a nonprofit as a ‘friend-raiser.’ A few months later Andrews returned to a larger venue for another friend-raiser, also free.

In fact, notwithstanding business cases like Gillette (where since the company’s founding in 1903 Gillette razor handles typically cost a pittance, but the blades are a pretty penny) nonprofits have been using the concept of free longer and with greater success than most for-profits. ‘Free’ is baked deeper into the DNA of nonprofits than it is in any flavor-of- the-month tech company.

Nonprofits understand better than most companies that ‘free’ doesn’t mean ‘no expense.’ Nonprofits know that in their fundraising they can and should give stuff things away to boost their fundraising.

And finally, nonprofits understand that among the many things they can give away free the most important may be the feeling that their supporters are doing something good for the world!

Read more: http://causerelatedmarketing.blogspot.com/search?q=anderson&submit=Search#ixzz0K26BFma3&C