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Can giving away money actually be a profitable customer acquisition strategy? Most companies channel their marketing budgets into traditional ads: billboards, banners, sponsored posts. These ads flood our landscapes, and when they're poorly executed they can come across annoying, cold, and impersonal. That all being said, the reason we see them so much is because conventional advertising works (typically requiring effective planning and a substantial budget). But what if you just… skipped it? Davis Baer, founder of OneUp, a social media scheduling tool, needed to build a promotion on a budget. To start, he promptly threw the traditional ad-strategy out the window. He reached out to his audience of over 10,000 followers and gave $100 to five random people who retweeted a post about his product. He showed all his cards, revealing his budget, his goal, and his intention, "I'd rather spend my ad budget on you than on BigTech." It was a simple, low-effort strategy. So did it work? The post generated over 300 engagements and an estimated 50,000-100,000 views within the SaaS Twitter community, at the time of the screenshot above (the tweet was later deleted). Based on tech industry benchmarks, SaaS advertisers are likely to pay $1.00 to $2.00 per engagement for promoted tweets, with costs skewing higher for highly targeted campaigns. With 300 engagements on a $500 budget, the post's performance was already healthy and continuing to garner traffic. The post fit Davis Baer's style People don't easily connect with ads. They connect with personalities and stories. Baer's online personality makes his brand feel more human (not just another polished logo shrouded in mystique). His casual style defines his X profile. Example: he regularly announces his products' revenue benchmarks with MS paint style drawings. His posts feel down-to-earth and approachable, and the mildly self-deprecating humor meshes perfectly with today's social media culture. Why the free-money strategy works (and how SaaS companies can replicate it) - Attention-grabbing incentive
Money is a universal motivator. Offering cash or financial rewards instantly captures attention in crowded social media feeds, driving clicks, shares, and participation. Example: In 2021, Cash App's #CashAppFriday campaign gave away thousands of dollars weekly to users who commented on their posts, generating massive engagement (e.g., posts often received 50,000+ comments). - Viral potential
Social media platforms thrive on shareability. Giveaways encourage users to tag friends, repost, or engage publicly, amplifying reach organically. According to a 2023 study by Sprout Social, 74% of consumers are more likely to share branded content if it includes a promotional incentive like a giveaway. - Low barrier to entry
Simple actions (e.g., liking a post, commenting, or following an account) make participation easy, increasing conversion rates. This aligns with behavioral psychology. People are more likely to act when the effort is minimal, and the reward is tangible. - Brand exposure and follower growth
Giveaways attract new followers, especially when users are required to follow the brand's account or engage with its content to enter. For SaaS companies, this can expand their audience and create opportunities for nurturing leads into customers. - Data collection and lead generation
By requiring participants to sign up for a newsletter, create an account, share contact details, or just retweet, your company can collect valuable user data for future marketing. A 2022 HubSpot report noted that 60% of marketers use giveaways to build email lists, with conversion rates as high as 30% for well-designed campaigns. To adapt your own version of this promotion, here's some more general advice. The core principle here is to take advantage of social media spaces and online behavior. - Engage directly
Use platforms where your audience lives — social media, forums, communities — and where you have the largest following. - Show your hand
Be upfront about your goals or intentions to build credibility. - Encourage participation
Design campaigns that incentivize users to act — share, create, or contribute — spreading your message organically. Will we see more marketing like this in the future? In the information age, the veil between your customers and your company is thinning. People know what you're up to. They know you're just a person or persons trying to promote your product. So, like Davis Baer, maybe you should just tell them that upfront. Show your cards to your audience — they might just respect you for it. Do you agree that giving away money is a viable strategy? Reply with your thoughts. I'd love to hear them. —Corey Swipe Files does not have sponsors. We have partners. We partner with trusted top-tier service providers. In fact, I reached out to them — each one has been carefully selected and vetted so I have 100% confidence in recommending them to you. Doing business with them supports this newsletter. 😊 See how these services can help you grow and mention "Swipe Files" or "Corey" for special treatment: - Conversion Factory — My SaaS marketing and design agency without the BS of unpredictable costs or contracts.
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