Keeping a customer is a lot easier and less expensive than acquiring a new one. This is very common knowledge among the business community, which is why it is oftentimes worthwhile to lose some money up front if it means you’ll be earning it back later on.

This kind of philosophy and approach has been applied to a number of different industries and niches. Take diabetic testing supplies as a prime example. Many of these companies offer the testing meters for free, because the real money is in the constant supply of testing strips.

The mobile phone industry has long since recognized this phenomenon too. They’ll more than gladly sell you a brand new cell phone at a discounted price, because you are signing a two or three year contract to get it. Over the course of that service contract, the profits from your monthly bill easily cover that initial subsidy on the new phone.

Are these “gateway drug” sales tactics deceiving? Possibly, but they serve as very powerful marketing strategies for acquiring new customers. Then, you just have to work to keep them.