One of our podcast listeners wrote to us with a problem. I am sharing it today because this problem seems like some of you could also share it. Our listener wants help convincing his team that using a free trial will help sales. We think that it might, and here’s why. 

Let me begin by explaining the theory behind why we think it will. In the behavioral sciences, there is something called the Endowment Effect. The Endowment Effect  is rooted in another larger Behavioral Science concept called Loss Aversion. Once you have something, once it is in your endowment, you value it more and treat it differently.

The Endowment Effect occurs whether you paid for something or not. It is the reason why once you consider something yours, it’s painful for you to give it up. This feeling has to do with Loss Aversion, which explains that people feel worse about losing things than gaining things feels good. 

read more…