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 freely giving e-books and PDFs. I feel Orbach would agree that this period is coming to an finish.

Due to AI, no-code, and outsourcing, the neatest tech entrepreneurs are actually freely giving mini software program instruments … fully at no 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 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 perhaps a free pattern of fragrance on the mall. For my hometown gasoline station, Wawa, it was free espresso each 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 major methods:

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

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

You’re not gonna rank to your area of interest’s major 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 major 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 nice to start out.

For instance, the key phrase ‘social media supervisor jobs‘ has a key phrase issue of 0 and seven,200 searches monthly. In case you’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 in search of jobs.

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

In case you’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 might be free instruments.

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

For instance, if you happen to’re a private finance app, possibly it’s a compound curiosity calculator. Or if you happen to’re a video modifying software program, possibly it’s a free video resizer. The choices are countless.

Professional tip: Clearly, don’t give away all of your software program’s secret sauce. However most occasions, you’ll have the ability to discover not less than one function to supply for gratis.

What This Appears Like in Observe

Let’s use me for example.

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

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 monthly!).

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 at no cost.

And certain, 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 at no 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 fundamental 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 instrument utilizing simply straight search engine marketing — 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 an enormous 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 once I was Head of Development at Product Hunt.

I noticed these loopy solo founders, and I spotted you don’t have to have a million-dollar funds anymore to construct free software program. (Actually, it could even be simpler for solo hackers and startups as a result of there’s much less oversight, little to no forms, 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 really 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 major startup.”

Supply

Lou recommends the next pointers 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 folks keep 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.

“Over time, 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 easy: I begin with a key phrase associated to the location I’m engaged on (like ‘colour’) and ask ChatGPT at no 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 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 instrument advertising and marketing.

Why?

As a result of we’re coming 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 at no cost function 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!