The Rise of Free SaaS Tools as Lead Magnets (& How Marketers Can Take Advantage)

As Wiz’s Head of Advertising and marketing Tom Orbach says, “Mini tools are 10x more powerful than free trials.”

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

Due to AI, no-code, and outsourcing, the neatest tech entrepreneurs are actually gifting away mini software program instruments … completely totally free.

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

Right here’s the way it works.

What’s free software advertising?

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

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

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

There are two principal methods:

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

The aim right here is to snag slightly little bit of visitors which may be thinking about your paid software program.

You’re not gonna rank on your area of interest’s principal key phrase in a single day, however mini instruments are like mini bets. Every mini software offers you a greater shot at rating greater on your most necessary principal key phrases.

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

For instance, the key phrase ‘social media manager jobs‘ has a key phrase problem of 0 and seven,200 searches per thirty days. If you happen to’re an AI resume writing software or a hiring platform like Certainly, you could possibly spin up a free AI resume writing software 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 per thirty days.

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

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

Do you may have any current options that could possibly be free instruments?

For instance, in case you’re a private finance app, perhaps it’s a compound curiosity calculator. Or in case you’re a video modifying software program, perhaps it’s a free video resizer. The choices are countless.

Professional tip: Clearly, don’t give away all of your software program’s secret sauce. However most instances, you’ll be capable to discover not less than one characteristic to supply without charge.

What This Seems Like in Apply

Let’s use me for instance.

I run a meme advertising software program known as Memelord Technologies.

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 per thirty days!).

I already constructed an AI background removing software for memes, so I took that characteristic and spun up a Free Meme PNG Maker It’s the very same characteristic — simply given away totally free.

And certain, I’m paying slightly little bit of API charges each time somebody makes use of the software, however I’m already seeing signups from it totally free (and with zero promotion!).

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Right here’s one other private instance.

I additionally noticed that the key phrase ‘marketing 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 software for entrepreneurs to get inspiration for memes: a fundamental no-code, searchable, filterable gallery of marketing meme examples.

Just like the meme PNG creator, I’m already seeing signups from this free software utilizing simply straight search engine optimisation — 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 must 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 once I was Head of Development at Product Hunt.

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

Marc Lou is one such solo software program founder and big 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 software advertising is symbiosis. It consists of launching free and viral mini-apps to advertise your principal startup.”

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Lou recommends the next pointers for one of the best outcomes:

1. The software have to be free — that’s the way you create a viral loop.
2. One characteristic is sufficient. It have to be tremendous easy.
3. The identify ought to inform precisely what the software does. That’s how individuals bear in mind and search on Google.
4. The expertise should begin on the homepage. Guests shouldn’t enroll 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 properly they carry out,” Matt informed me by way of DMs on X.

“The method is easy: I begin with a key phrase associated to the location I’m engaged on (like ‘coloration’) and ask ChatGPT totally free software concepts round it. I solely goal low-competition, high-search-volume key phrases to rank quick and drive visitors.

Free instruments naturally entice views, backlinks, and area authority. My website Niche Tools has 20+ free instruments on it and is beginning to rank bringing in free gross sales.”

Merrick devoted his complete profession to free software advertising.

Why?

As a result of we’re coming into the period of free software 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 totally free characteristic concepts. Head over to Ahrefs’ keyword generator (one other free software) to optimize for search.

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