When using a free offer, the customer's decision to purchase the first, even minor, upsell is the most accurate signal of their future retention and value. This initial transaction is less about immediate profit and more about qualifying the customer's long-term commitment.
A gym owner monetized prospects who declined membership by offering a free home workout program, then upselling them on high-margin supplements. These "rejected" customers ended up spending 50% more than regular members, creating a new, profitable revenue stream from lost leads.
A weight loss clinic gave away expert medical services for nearly free, making its profit on consumable products like supplements. This reveals a consumer bias towards paying for physical goods over the intangible expert services that make those goods effective, even when the service is provided by professionals.