Give-aways. Companies all across the land slap their logos on coffee mugs, water bottles, t-shirts, buttons, letter openers… items useful and whimsical, ugly and beautiful. Why do they do it? Because it works. Here are some reasons why.

Reason 1: Keep your brand top-of-mind

Customers visit to companies they remember. Your name has to be in their minds in order for them to choose you. Think of the restaurants in your neighborhood. Your list may be five to ten restaurants long. But in actuality, unless you live in a remote area, there are probably double or triple that many eating options in your area. Those restaurants haven’t gotten their brand out to you.

One way to keep your establishment on that “top-of-mind list” is to keep your name around… on a magnet, a pen, even a doormat. (Yes, my favorite give-away from the San Diego Padres baseball team was a Padres doormat. Fitting for a team that’s never won the World Series.)

Reason 2: Humans are naturally honor-bound to reciprocate

The small business blog run by the New York Times ran an article pondering the question of why businesses give out freebies. They conclude that offering something somehow obligates the recipient  The article states:

“Promotional products are, some say, the oldest form of advertising. American businesses spend $20 billion a year giving away stuff with logos, according to Jerry McLaughlin, president of Branders, one of the largest sellers of promotional products online. Which is pretty good evidence that it works. Mr. McLaughlin credits the effectiveness of promotional products to centuries old cultural norms around the rule of reciprocity. “If you give something, the recipient is honor bound to give something back,” he said. “In every language and culture, research has found there are really pejorative words for people who get and don’t give back. We humans are hard wired to respond if we get something.”

I’d like to see the science that proves we’re hard wired to respond if we get something, but the point is, when you give something to someone, it makes them feel good. If they like the thing you’ve given them, you have a positive feeling toward that organization. Positive feelings are always a good thing when it comes to growing a business. It’s all about relationships.

Reason 3: Vanity

Some businesses, large and small, are run by self-important people who just want to see their logos all over the place. But these same people also usually work their tails off making sure the business really is as great as they imagine it to be.

What do you think?

Let us know your experiences creating and giving out branded merchandise.