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

As Wiz’s Head of Advertising 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 without cost.

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

Right here’s the way it works.

What’s free instrument advertising?

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

For a fragrance firm, it is likely to be a free pattern of fragrance on the mall. For my hometown gasoline 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 instrument(s) to construct?

There are two primary methods:

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

The purpose right here is to snag a bit of little bit of visitors that could be eager about your paid software program.

You’re not gonna rank in your area of interest’s primary key phrase in a single day, however mini instruments are like mini bets. Every mini instrument provides you a greater shot at rating increased in your most vital primary 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 nice to begin.

For instance, the key phrase ‘social media manager jobs‘ has a key phrase issue of 0 and seven,200 searches per thirty days. For those who’re an AI resume writing instrument or a hiring platform like Certainly, you possibly can spin up a free AI resume writing instrument particularly for social media managers on the lookout for jobs.

Right here’s one other instance: The key phrase ‘Instagram giveaway template’ has a key phrase issue of 5 and 500 searches per thirty days.

For those who’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 model or Midjourney.

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

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

For instance, for those who’re a private finance app, possibly it’s a compound curiosity calculator. Or for those who’re a video modifying software program, possibly it’s a free video resizer. The choices are limitless.

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

What This Seems to be Like in Follow

Let’s use me for example.

I run a meme advertising software program referred to 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 issue and 4,000 searches per thirty days!).

I already constructed an AI background elimination instrument 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 positive, I’m paying a bit of little bit of API charges each time somebody makes use of the instrument, however I’m already seeing signups from it without cost (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 issue and comparatively excessive in search quantity (2 key phrase issue and 1,200 searches/month).

So, what did I do? I created a instrument 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 instrument utilizing simply straight website positioning — no promotion required.

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

Publication 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 once I was Head of Development at Product Hunt.

I noticed these loopy solo founders, and I spotted you don’t must have a million-dollar finances anymore to construct free software program. (In reality, 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 really like constructing apps,” he explains. “However I additionally want advertising to pay the payments. Free instrument advertising is symbiosis. It consists of launching free and viral mini-apps to advertise your primary startup.”

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Lou recommends the next tips for the most effective outcomes:

1. The instrument have to be free — that’s the way you create a viral loop.
2. One function is sufficient. It have to be tremendous easy.
3. The identify ought to inform precisely what the instrument 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 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 ‘shade’) and ask ChatGPT without cost instrument concepts round it. I solely goal low-competition, high-search-volume key phrases to rank quick and drive visitors.

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

Merrick devoted his whole profession to free instrument advertising.

Why?

As a result of we’re getting into the period of free instrument 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 via your product without cost function concepts. Head over to Ahrefs’ keyword generator (one other free instrument) to optimize for search.

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