This is the old "prize in the popcorn box" approach. A little something extra at no extra charge.

Premiums and gifts, sometimes called "ad specialties," have been around a long time. The modern version of this free gift idea is aimed at name awareness: magnets, calendars, luggage tags, T-shirts, pens, pencils, or coffee mugs that carry your name, logo, and perhaps phone number or Internet address. Anything that lasts and will be used by your prospective buyer can be effective. You may give these tokens out directly or have a buyer send in the proverbial "box top" and receive the valuable merchandise ... with your name all over it!

For better or worse, there's already a wide variety of "standard" promotional items. Be aware of what's out there and be sure that your premium or gift is different and better. If at all possible, be sure there is a logical connection between the premium or gift and your business. Free mugs that entitle the purchasers to reduced-cost coffee are a good example of this.

The key question, as it is for any promotional activity, is whether the cost of the premiums or gifts will be recovered through increased business. If all your customers dutifully wear their T-shirts with your logo, will you gain new customers? Monitoring results can be as easy as asking new customers how they heard about your business. If 99 percent tell you that they saw your ad in the Yellow Pages, you can be relatively confident that the premiums aren't doing what you hoped.

A note of caution: be sure whatever you give away isn't potentially harmful if, for example, swallowed by your customer's dog or child.