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

As Wiz’s Head of Advertising 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 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 giving freely mini software program instruments … solely without cost.

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

Right here’s the way it works.

What’s free instrument advertising and marketing?

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 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 instrument(s) to construct?

There are two principal methods:

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

The purpose right here is to snag slightly little bit of site visitors which may be keen on 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 instrument offers you a greater shot at rating increased on your most vital principal 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 attainable. Even as little as 1,000 searches/month is sweet to start out.

For instance, the key phrase ‘social media supervisor jobs‘ has a key phrase issue of 0 and seven,200 searches monthly. If you happen to’re an AI resume writing instrument or a hiring platform like Certainly, you may 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 monthly.

If you happen to’re a picture creation platform like Canva or an advert company that helps manufacturers do Instagram giveaways, you may 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 the event you’re a private finance app, possibly it’s a compound curiosity calculator. Or in the event you’re a video enhancing 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 not less than one characteristic to supply for free of charge.

What This Seems to be 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 issue and 4,000 searches monthly!).

I already constructed an AI background removing 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 slightly 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!).

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 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 primary no-code, searchable, filterable gallery of promoting meme examples.

Just like the meme PNG creator, I’m already seeing signups from this free instrument utilizing simply straight search engine optimization — 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 discovered about this advertising and marketing tactic after I was Head of Development at Product Hunt.

I noticed these loopy solo founders, and I noticed you don’t have to have a million-dollar price range anymore to construct free software program. (In actual fact, 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 big advocate of free instruments.

“I’m a developer, and I like constructing apps,” he explains. “However I additionally want advertising and marketing to pay the payments. Free instrument advertising and marketing is symbiosis. It consists of launching free and viral mini-apps to advertise your principal startup.”

Supply

Lou recommends the next tips for the very best outcomes:

The instrument should be free — that’s the way you create a viral loop.
One characteristic is sufficient. It should be tremendous easy.
The identify ought to inform precisely what the instrument does. That’s how individuals bear in mind and search on Google.
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 effectively they carry out,” Matt informed me through DMs on X.

“The method is straightforward: I begin with a key phrase associated to the positioning 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 site visitors.

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

Merrick devoted his complete profession to free instrument advertising and marketing.

Why?

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

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