Free Drinking Water: Scam or Revolution?
Lately, you might have noticed various marketing adverts by an American brand popping up and going viral on TikTok and Instagram. In various videos, US-based FreeWater appeared to question the notion of why we should pay for drinking water.
In a world where access to clean drinking water remains a challenge for many, innovative solutions are crucial. Approximately 3.5 million people die each year due to inadequate water supply, sanitation and hygiene.
FreeWater is a pioneering company that has turned the conventional bottled water business on its head by offering water for free while generating revenue through advertising on their bottles. This groundbreaking approach not only addresses the need for accessible hydration but also provides an inventive platform for advertisers. Here’s a deep dive into how FreeWater came to be, its unique business model, and its potential impact on both the advertising and water industries.
The Genesis of FreeWater
FreeWater was founded by Joshua Cliffords, an entrepreneur with a vision to solve the dual problems of water scarcity and advertising inefficiencies. The idea came to him during his travels when he encountered numerous communities struggling with access to clean water. Cliffords realized that providing free water could have a transformative impact, but the challenge was to make it financially sustainable.
The Birth of an Idea
Cliffords' eureka moment came when he connected the dots between advertising and bottled water. Traditional advertising models were becoming increasingly saturated and less effective, while the demand for clean drinking water remained high. By combining these two needs, he envisioned a model where companies could advertise on water bottles, effectively subsidizing the cost of the water and making it free for consumers.
How Do They It?
The FreeWater business model is both simple and ingenious:
FreeWater’s primary revenue stream comes from the advertisers. Companies looking to reach a broad audience in an innovative way pay for the ad space on the bottles. The appeal of this model lies in its guaranteed visibility; unlike digital ads that can be skipped or ignored, a water bottle is a tangible product that consumers interact with, increasing ad engagement.
How this 23 Y/O law grad is making a business out of giving away free canned water
Now, it seems that a Malaysian brand called DrinkFree is replicating FreeWater's idea by offering free water in local areas.
Kyle, the founder of DrinkFree, where the 23-year-old law graduate from KL shared that he had dropped out of his Certificate in Legal Practice (CLP) course to start up DrinkFree.
Kyle shared that he had always wanted to start a business and that the “crazy” advertising idea and a drive to reduce plastic pollution triggered him to start it.
He admitted that the idea came from FreeWater in the US, but what truly inspired him was Elon Musk’s quote, “Try to be useful, do things that are useful to your fellow human beings, to the world… It’s hard to be useful”.
As there was already precedence for him to adopt this idea, he was confident enough to choose to invest time and money in research and testing.
Although he chose not to disclose how much he invested into the business, Kyle shared that the capital came from his own savings.
Unlike FreeWater, which offers water in paper carton boxes or aluminum bottles, DrinkFree only offers one product: natural spring water in cans.
Kyle said this is because canned water ensures durability, is easier to recycle, and is better-looking.
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“Although people may not have heard of it and are afraid of new things, however, with time, people will accept it and start embracing the novel eco-friendly idea.”
To further boost his confidence in the product, Kyle explained that he personally distributed the product in the Bukit Bintang area, and the results he got were excellent.
“It caught their attention and curiosity, some of the audience told us they support the interesting idea as they benefit from it, and that they do not mind reading the ads,” he added.
“I think what stops advertisers from taking this concept is that there is no [local] precedent, and people do not put confidence in new ideas, which is why getting advertisers at the early stage is harder.”
But Kyle says that it can be guaranteed that after a few advertisers advertise with them, clients will increase.
Meanwhile, DrinkFree offers free distribution, which is included in the package (subject to package type).
The location will be determined and discussed with the advertisers for the best decision, and no permit is needed unless it is done on private property or under any special circumstances.
They offer packages of various rates for brands to advertise on their cans which ultimately depends on the number of cans they choose to go with, which is similar to the business model that FreeWater is working with. Drinkfree’s rates range from RM1.90/can (5,000 units) to RM2.20/can (1,000 units).
Meanwhile, in terms of designs, DrinkFree provides templates for advertisers who choose to design themselves, or they can choose DrinkFree’s in-house designer, with a rate of RM300.
“Boxed water requires larger capital on machinery, and once a box is printed, it will be harder to be recycled.”
He also explained that the biggest challenge for the business is that, as founder, he would need to be in charge of every single aspect, such as marketing, design, management, research, machine repair, and more. Not to mention, their profit margin is still low too.
But, despite the obstacles, Kyle is steadfast in the belief in DrinkFree as it aims to achieve the goal of being “low-cost, effective, efficient, eco-friendly, and beneficial to people”.
In the future, they hope to reach a number of advertisers until there is free water everywhere in Malaysia so that people no longer need to pay for water stored in plastic bottles.
“Flyers are no longer effective, as people will either just refuse to take it or dump it into the bin and not look at it at all. This is really a waste of time and resources,” he explained.
“(Additionally) due to the low rate of online ads, social media is being drowned by ads, and people would just ignore them when they know it is an ad. DrinkFree is here for the solution.”
There remains the question of how effective DrinkFree’s ads will actually be for brands and how that efficacy will be measured, so Kyle shared that he will be looking further into showing the impact of their ads soon.
Despite these challenges, FreeWater and DrinkFree's future looks bright. The increasing demand for innovative advertising solutions combined with the urgent need for accessible clean water creates a fertile ground for growth. As the company expands, it could potentially partner with governments, NGOs, and large corporations to enhance its reach and impact.
Conclusion
FreeWater and DrinkFree are not just a bottled water companies; they are a trailblazer in merging social good with innovative business practices. By turning water bottles into advertising platforms, they provide a win-win solution that benefits consumers, advertisers, and the environment. Joshua and Kyle's vision and execution have laid the foundation for a business model that could redefine the way we think about both hydration and advertising. As FreeWater and DrinkFree continue to grow, they hold the promise of making a significant impact on global water accessibility while offering a fresh and effective medium for advertisers.
But is this business model sustainable?
Decathlon Sports India | Operations and Supply Chain Management | SIMS '24
8 个月I'd like to live in a world with less advertising but no one can deny the man has found a way to make money innovatively. Weird to realise your attention is worth more than your sustainance though.