Add Value to a Free Product and Charge for It!

By Ian Fernando

I just stumbled on this amazing video and thought it was worth a share and it definitely is because it shows how perceived value marketing works and how curiosity is a strong call to action. Sometimes free just doesn't cut it. Why get something for free when you can a deluxe version of the free item. It also mean there are ups to a paid item, for example free bonuses or upgrades.

Perceived value is an interesting concept when selling an item, why does it cost that much more. It just builds a curious factor in all of us. It tries to answer the question why. This is the reason why a lot of information courses are more pricey because it adds on curiosity.

The video below is a great example... this one person intrudes a person "Free Hug" campaign and post his own Deluxe Hugs ad for $2! He literally puts himself side by side with the Free Hugs person and competes for traffic.


The best part about Deluxe Hugs guy is he is selling himself, making himself more genuine and even mudslinging the Free Hugs person. Not only is this person hugs are free, he just walks around waiting for people to come up and get a free hug. He is even putting his ad in front of the end user but not selling. While Deluxe Hugs is selling himself and explaining why his hugs are better, in fact 100% better.

It shows you how curiosity is in everyone because everyone knows hugs can be given for FREE, but why pay? The users in this video are asking. They are curious enough to ask and even more curious to even try/purchase a deluxe hug! It is just the perceived value of the hug. Standing next to the Free Hug person, a lot of walking customers were curious to just ask what is the difference.

Everyone knows free is free - nothing to it. When you put a price on something such as hugs, why? It just plays in your head because naturally hugs are free. You get a hug from your parents or aunts and uncle, you never expect your grandmother to ask you for $2 for a hug!

Naturally your mind is really curious about this action. Let's take another example, TVs. TVs are TVs they just display something on screen. What separates other TVs from other brands? Again curiosity plays in and you start scavenging the internet for reviews, features, benefits etc. You literally spend time trying to find the difference between 2 products.

In this video, a full marketing campaign is going off. Deluxe Ads are better because he ads swing, it is 50% longer, he puts love and is vocal. Free Hug person just gave out hugs. Again everyone knows what a hug feels like, so saying it is free isn't anything new. Put a price on it and now it becomes an interesting topic.

...the $20 at the end, kind of was like whoa...

In either case, no matter how many hugs the free person gave out, he went home with no money. Deluxe Hugs earned $36 for an hours worth of work.

Ian Fernando
Involved in the internet space since 2002 and have been through the ups and downs of this online industry. I am a traveling digital nomad, media buyer, online strategist, and many more online titles.

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