The business novice often assumes that the way to make a lot of money is to charge a premium for something. There’s some merit to that idea, but it’s not always the case. In the digital age, online companies have shown that you can make a lot of money without asking for payment. That might sound counterintuitive, but it’s true.
A great example of this is YouTube. The video network doesn’t charge content creators or viewers a cent. All the money it makes is through advertising revenue. The same goes for other social media platforms, including Instagram and Facebook. Elsewhere on the internet, online gaming companies have embraced the freemium model.
Casinos Give Customers Something for Nothing
Licensed online casinos are allowed to offer real-money games. That means they can accept deposits and pay cash prizes. However, many of the leading operators still offer free games. Why? Well, there are various reasons. Firstly, free-play games are a great way for newbies to learn the basics of popular casino games such as slots, blackjack, and roulette.
Secondly, free-play games are a way to make depositing money an attractive proposition. To unpack this, we need to explain what a no deposit bonus is. A no deposit bonus is a reward given to new customers. As the name suggests, the bonus doesn’t require a deposit. The credits a player receives can be used to play free games for real money.
So, let’s say a new customer claims a no deposit bonus at BetMGM and plays Starburst. They don’t have to risk any money to spin the reels. Anything they win gets credits to their account as bonus cash. This cash can’t be withdrawn until the player hits something known as a playthrough target/wagering target. To hit that target, the player must bet their own money. If the player doesn’t already have money in their account, they need to make a deposit.
Give Customers a Reason to Spend Money
The player is under no obligation to make a deposit. The bonus gets credited regardless, and the bonus cash remains in their account. However, if they don’t make a deposit and hit the playthrough target within a certain amount of time, the bonus cash disappears. Therefore, what the casino operator has done is give the player an incentive to deposit money, while the player gets to try a new game without any risk and, potentially, win some money. Thus, it’s a good deal all around.
It’s a slick system and one that online business owners can learn from. Indeed, online gambling is a multi-billion dollar industry, so operators are clearly doing something right. Obviously, you need to adapt the system to suit whatever industry you’re in. The point, however, is that you don’t have to charge a premium to make money. In fact, it’s often a good idea to get customers through the door with a freebie before asking them to pay money.
We live in an age where it’s easy to get things for free online. This has changed the way consumers view products and services. All too often, we hear things like: “why pay when I can get it online for free?” You can lean into this as a business owner. Give people something for free and link it to a paid-for product. That way, new customers get something for nothing and have an incentive to spend money. It might seem counterintuitive, but in casino gaming, at least, it works.
