The Power of Reciprocation

Why Giving away Freebies Promotes Sales

Give away something original, artistic, informative or of recognizable value and your sales will increase. End of story.

This little tip has been working for centuries. It’s built into our societal code of ethics, our culture, and our collective behavioral systems. People reciprocate when they are given a gift. It doesn’t matter if they don’t like the gift or the giver. They feel an obligation to reciprocate.

You may say: ‘Hey, that’s not me. I don’t feel obligated to reciprocate.’ You may eat the cheese at the supermarket freebie station and pass on purchasing. You may receive personalized address labels from the American Heart Association, actually use them and then still toss the donation card into the garbage. It’s probably because you recognize and analyze the marketing concepts at work and second-guess your impulses.

Most people do reciprocate, though. On impulse, we’re trained to reciprocate and feel guilt and shame when we don’t live up to that contract. Giving back provides closure when we’ve been given to.

You can really see the power of the contract in action when you try to return or refuse a gift. Have you ever been given a gift and then decided to give it back after accepting it? You usually don’t give it back because you don’t want it or you can’t use it. You give it back because you don’t want to be bound by the reciprocation contract. You don’t want to be obligated to the exchange relationship. When you accept gifts, you accept the reciprocation obligation. This is where the phrase “much obliged” comes from.

Remember, gift giving in combination with originality increases sales conversions. Address labels and cheese samples are pretty worn concepts. Think creatively and offer value. Simple art, inside information and inspirational gifts will help your generosity stand out and your prospects remember this unclosed loop of debt.

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