The Rise of Free SaaS Instruments as Lead Magnets (& How Mark…

As Wiz’s Head of Advertising and marketing Tom Orbach says, “Mini instruments are 10x extra highly effective than free trials.”

For the final 20 years, tech entrepreneurs have been giving freely e-books and PDFs. I believe Orbach would agree that this period is coming to an finish.

Because of AI, no-code, and outsourcing, the neatest tech entrepreneurs are actually giving freely mini software program instruments … completely without cost.

That is one thing I wish to name ‘free device advertising.’

Right here’s the way it works.

What’s free device advertising?

In MBA communicate, free instruments are known as ‘loss leaders.’ A loss chief is a free-ish mini product that will get clients to purchase an even bigger product.

For a fragrance firm, it may be a free pattern of fragrance on the mall. For my hometown gasoline station, Wawa, it was free espresso each Tuesday in 2024. Now, in tech, the norm is to present away free instruments to get you within the door for paid ones.

However how do you determine which mini device(s) to construct?

There are two important methods:

1. Search for low-difficulty, high-volume key phrases.

The aim right here is to snag a little bit little bit of site visitors which may be taken with your paid software program.

You’re not gonna rank to your area of interest’s important key phrase in a single day, however mini instruments are like mini bets. Every mini device offers you a greater shot at rating increased to your most vital important key phrases.

Use instruments like Ahrefs to search out key phrases which are low-difficulty key phrases with a KD round 0-5 with as excessive quantity as potential. Even as little as 1,000 searches/month is sweet to start out.

For instance, the key phrase ‘social media supervisor jobs‘ has a key phrase problem of 0 and seven,200 searches monthly. If you happen to’re an AI resume writing device or a hiring platform like Certainly, you possibly can spin up a free AI resume writing device particularly for social media managers searching for jobs.

Right here’s one other instance: The key phrase ‘Instagram giveaway template’ has a key phrase problem of 5 and 500 searches monthly.

If you happen to’re a picture creation platform like Canva or an advert company that helps manufacturers do Instagram giveaways, you possibly can create a free AI Instagram giveaway template generator utilizing one thing like OpenAI’s DALL-E mannequin or Midjourney.

2. Look inside your product for options that might be free instruments.

Do you could have any present options that might be free instruments?

For instance, in the event you’re a private finance app, perhaps it’s a compound curiosity calculator. Or in the event you’re a video enhancing software program, perhaps it’s a free video resizer. The choices are infinite.

Professional tip: Clearly, don’t give away all of your software program’s secret sauce. However most instances, you’ll have the ability to discover at the very least one function to supply without charge.

What This Seems Like in Observe

Let’s use me for instance.

I run a meme advertising software program referred to as Memelord Applied sciences.

Late one night time, I couldn’t sleep. So, I did some deep digging for key phrases on Ahrefs and noticed that the key phrase ‘meme png’ was low-difficulty and high-volume (0 key phrase problem and 4,000 searches monthly!).

I already constructed an AI background elimination device for memes, so I took that function and spun up a Free Meme PNG Maker It’s the very same function — simply given away without cost.

And certain, I’m paying a little bit little bit of API charges each time somebody makes use of the device, however I’m already seeing signups from it without cost (and with zero promotion!).

Supply

Right here’s one other private instance.

I additionally noticed that the key phrase ‘advertising memes’ was each low in key phrase problem and comparatively excessive in search quantity (2 key phrase problem and 1,200 searches/month).

So, what did I do? I created a device for entrepreneurs to get inspiration for memes: a primary no-code, searchable, filterable gallery of promoting meme examples.

Just like the meme PNG creator, I’m already seeing signups from this free device utilizing simply straight search engine marketing — no promotion required.

However I’m not the one instance on the market.

E-newsletter platform Beehiiv launched a free LTV calculator to calculate the lifetime worth of your subscribers. HubSpot has a free AI search grader that helps you consider your model efficiency in AI search outcomes. Wiz launched a free QR code generator.

And I’ve excellent news: You don’t should be a VC-backed enterprise or a giant model to construct free instruments.

How Entrepreneurs Can Get Began

I’m a bootstrapped scrappy founder constructing free instruments, and I first discovered about this advertising tactic after I was Head of Development at Product Hunt.

I noticed these loopy solo founders, and I noticed you don’t have to have a million-dollar finances anymore to construct free software program. (In reality, it might even be simpler for solo hackers and startups as a result of there’s much less oversight, little to no paperwork, and minimal have to show particular ROI.)

Marc Lou is one such solo software program founder and large advocate of free instruments.

“I’m a developer, and I like constructing apps,” he explains. “However I additionally want advertising to pay the payments. Free device advertising is symbiosis. It consists of launching free and viral mini-apps to advertise your important startup.”

Supply

Lou recommends the next pointers for the very best outcomes:

1. The device should be free — that’s the way you create a viral loop.
2. One function is sufficient. It should be tremendous easy.
3. The title ought to inform precisely what the device does. That’s how folks keep in mind and search on Google.
4. The expertise should begin on the homepage. Guests shouldn’t join or click on hyperlinks.

Matt Merrick is one other solo hacker constructing free instruments.

“Through the years, I’ve constructed over 100 free instruments. And each time, I’m amazed by how nicely they carry out,” Matt informed me through DMs on X.

“The method is straightforward: I begin with a key phrase associated to the location I’m engaged on (like ‘coloration’) and ask ChatGPT without cost device concepts round it. I solely goal low-competition, high-search-volume key phrases to rank quick and drive site visitors.

Free instruments naturally appeal to views, backlinks, and area authority. My website Area of interest Instruments has 20+ free instruments on it and is beginning to rank bringing in free gross sales.”

Merrick devoted his whole profession to free device advertising.

Why?

As a result of we’re getting into the period of free device advertising.

Free e-books are so 2010s. The 2020s and past are all about free software program.

So, let me ask you: What free instruments are you able to construct?

Give it some thought for a minute. Take a minute to look by your product without cost function concepts. Head over to Ahrefs’ key phrase generator (one other free device) to optimize for search.

Then, seize a Purple Bull, go construct some free instruments, and launch ‘em!