Why Do Companies give away free stuff

"Why would I spend my Money on something that I can find elsewhere for free?” that's the question that most of us ask themselves when it comes to buying things. To understand the power of freebies nowadays, just Calculate the number of times you use to listen, watch or download someone's song on YouTube while it is sold on iTunes. Or Calculate how often you use to track down free download links for softwares  and other stuffs. Yet, freebies are becoming irresistible.

In fact, The Need of having more for less has been growing for a while now.  and everybody is looking for satisfaction no matter what it costs. On my side I would not spend money on a song that is already on Youtube. and if it is not yet there, it may not take that much longer. However a reasonable part of consumers get affected negatively, I can simply imagine the feeling of an artist waiting to get a portion of his album or song, recently published on iTunes or Amazon.

Most entrepreneurs agrees that offering a freebie to a client or customer, is simply an action of saying thanks for being my customer. But according to TIME magazine, The power of  giveaways (freebies) goes much deper. When you get something for free, the feeling of being obliged to buy more, grows in one way or another.and the net results is that the companies handing out freebies are rewarded well for their generosity.

Normally, When an item comes with a cheap price tag, we assume it's cheap quality and isn't worth good money, But a new study from the Journal of Consumer Reasearch says that if an item is thrown in as a bonus freebie when buying an expensive or luxury good, consumers deem the freebie as a higher quality product and are willing to pay more for the item on its own.

That's why People are likely to become lifelong customers, as long as they are benefiting of something free.