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

As Wiz’s Head of Advertising and marketing 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 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 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 clients to purchase a much bigger product.

For a fragrance firm, it may be 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 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 curious about your paid software program.

You’re not gonna rank on your area of interest’s essential 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 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 begin.

For instance, the key phrase ‘social media supervisor jobs‘ has a key phrase problem of 0 and seven,200 searches per thirty days. In case you’re an AI resume writing instrument or a hiring platform like Certainly, you possibly can 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 problem of 5 and 500 searches per thirty days.

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

Do you’ve got any present options that may very well be free instruments?

For instance, for those who’re a private finance app, perhaps it’s a compound curiosity calculator. Or for those who’re a video enhancing software program, perhaps it’s a free video resizer. The choices are infinite.

Professional tip: Clearly, don’t give away all of your software program’s secret sauce. However most instances, you’ll be capable of discover at the least one function to supply for free of charge.

What This Seems Like in Follow

Let’s use me for example.

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

I already constructed an AI background removing 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 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 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 problem and comparatively excessive in search quantity (2 key phrase problem 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 selling 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 and marketing tactic once I was Head of Development at Product Hunt.

I noticed these loopy solo founders, and I spotted you don’t must have a million-dollar funds 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 forms, and minimal must 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 essential startup.”

Supply

Lou recommends the next pointers for the very best outcomes:

The instrument should be free — that’s the way you create a viral loop.
One function is sufficient. It should be tremendous easy.
The title ought to inform precisely what the instrument does. That’s how folks keep 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 instructed me through DMs on X.

“The method is easy: I begin with a key phrase associated to the positioning 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 entice views, backlinks, and area authority. My website 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 by means of 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!