- It has an appeal to the affluent market. Firstly the exclusivity, and secondly by gifting, they can show others that they are affluent.
- It shines a certain light on the brand selling it this way.
- It’s a controversial marketing ploy. Firstly because it’s only available to the affluent, which will offend many who think equality is fair. Secondly because of the contrast of high price and free within the same product.
- It makes the buyer into a distribution channel.
Sell the actual product for a high price for the product category. Give the buyer two things: a guarantee it will never be sold for a lower price; “lower quality” copies to give out freely.
For instance, a book could be priced at $100 or more, and the buyer will get either a certain number of softcover copies of the book, or an ebook (better to make these personalized with his name), that he can give away to anyone for free.