• MSNBC, Friday, March 12, 2010 10:51 AM

There seems to be a freebie fad going on, writes Eve Tahmincioglu, among companies trying to entice consumers with deals that can't be beat. Starbucks has been giving away free music downloads; Auntie Anne's has offered free pretzels; book publishers are giving away free eBooks on Amazon; and some restaurants, including Denny's, have ongoing kids-eat-free programs.

About.com's Freebies channel guide Stacy Fisher says she has seen a threefold increase in giveaways over the past six months or so. "You may not try the new crackers that come out," she points out, "but if you try them for free you may buy them down the road."

Starbucks customers get a "Pick of the Week" card redeemable for free songs on the iTunes store every Tuesday. "This program has been enormously successful with customers, so much so that Starbucks expanded the program from all company-operated stores to select licensed stores earlier last year," says spokeswoman Holly Hart.

Mike Schultz, president of consultancy Wellesley Hills Group, says "free works well when it introduces someone to a company and the introduction leads to profitable new sales." But he also points out that the practice is "fraught with danger" because retailers can dilute the value of their product.

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