The Rise of Free SaaS Instruments as Lead Magnets (& How Entrepreneurs Can Take Benefit)

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 feel Orbach would agree that this period is coming to an finish.

Because of AI, no-code, and outsourcing, the neatest tech entrepreneurs at the moment are giving freely mini software program instruments … completely totally free.

That is one thing I prefer to name ‘free device advertising and marketing.’

Right here’s the way it works.

What’s free device advertising and marketing?

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 an even bigger product.

For a fragrance firm, it is likely to be a free pattern of fragrance on the mall. For my hometown fuel station, Wawa, it was free espresso each Tuesday in 2024. Now, in tech, the norm is to offer 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 just a little little bit of visitors that could be fascinated about your paid software program.

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

Use instruments like Ahrefs to search out key phrases which might 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 begin.

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

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

For those who’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 mannequin or Midjourney.

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

Do you’ve gotten 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 limitless.

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 no less than one characteristic to supply for gratis.

What This Seems Like in Observe

Let’s use me for instance.

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

Late one evening, 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 removing device 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 positive, I’m paying just a little little bit of API charges each time somebody makes use of the device, however I’m already seeing signups from it totally free (and with zero promotion!).

Supply

Right here’s one other private instance.

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

Just like the meme PNG creator, I’m already seeing signups from this free device utilizing simply straight search engine optimisation — 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 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 realized about this advertising and marketing 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 price range anymore to construct free software program. (In truth, 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 and marketing to pay the payments. Free device advertising and marketing 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 characteristic is sufficient. It should be tremendous easy.
3. The title ought to inform precisely what the device does. That’s how folks bear 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 properly they carry out,” Matt informed me by way of DMs on X.

“The method is straightforward: I begin with a key phrase associated to the positioning I’m engaged on (like ‘coloration’) and ask ChatGPT totally free device 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 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 and marketing.

Why?

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

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’ key phrase generator (one other free device) to optimize for search.

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