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Freebie business model

by Lex Nguyen
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This model works extremely well with ecommerce businesses,especially the dropshipping model. Here’s how it works: you give away a product for free,but buyers pay a small shipping and handling fee—typically $9.95.

How do you make money?

You choose low-cost products to give away.The cost of the product plus shipping is no higher than $5.That means your profit margin is at least 50%.

Example:

This ring costs only $0.99 plus shipping.If you give away the ring following this model,you pocket $8.96 per sale, which is a profit margin of about 90%.

And it doesn’t stop there.Once buyers are in the buying mood, you can upsell them with other products

The viral benefit of this model.

Because you give away the product for free, it is easierto ask your buyers to share this kind of offer to their friends and family members.And these friends once becoming your buyers will share to other friends.This will become a never ending circle.

Where do you find products to give away or sell?

AliExpress is a great place to start.What do you think of this business model?

Where do you find products to give away or sell?

AliExpress is a great place to start. What do you think of this business model?

About The Author
Lex Nguyen

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