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 freely giving 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 freely giving mini software program instruments … fully 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 communicate, 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 could 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 present 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 essential methods:

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

The aim right here is to snag just a little little bit of visitors which may be involved in your paid software program.

You’re not gonna rank to your area of interest’s essential key phrase in a single day, however mini instruments are like mini bets. Every mini instrument provides you a greater shot at rating increased to your most essential essential 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 potential. 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 issue of 0 and seven,200 searches per thirty days. In the event you’re an AI resume writing instrument or a hiring platform like Certainly, you 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.

In the event you’re a picture creation platform like Canva or an advert company that helps manufacturers do Instagram giveaways, you 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 may very well be free instruments.

Do you may have any current options that may very well 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 to discover no less than one characteristic to supply for free of charge.

What This Appears to be like Like in Follow

Let’s use me for instance.

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

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 issue and 4,000 searches per thirty days!).

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

And positive, I’m paying just a little 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 web optimization — 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 an enormous 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 tactic once I was Head of Progress at Product Hunt.

I noticed these loopy solo founders, and I spotted you don’t have to have a million-dollar finances anymore to construct free software program. (The truth is, 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 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 instrument advertising is symbiosis. It consists of launching free and viral mini-apps to advertise your essential startup.”

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

1. The instrument 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 title ought to inform precisely what the instrument 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.

“Over time, I’ve constructed over 100 free instruments. And each time, I’m amazed by how nicely they carry out,” Matt advised me by way of 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 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 total profession to free instrument advertising.

Why?

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

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