Why Branded Swag Won’t Grow Your Small Business

What exactly is swag? According to iPromo, it’s company-branded merchandise given away as a form of advertising—think pens, tote bags, t-shirts, notebooks, and other freebies with a company logo.

But here’s the truth: most people don’t actually care about your logo on a pen or t-shirt. Customers care about one thing—a quality product or service that solves their problem, paired with great customer service.

So why do small business owners still spend money on swag? Many feel they need to emulate large corporations like Coca-Cola, Hilton, Verizon, or Geico, which give out branded items at events. The difference is that those companies have massive marketing budgets and global brand recognition.

When we grab free swag at events, it’s usually because it’s free—not because we plan to become customers. We’ll take the pen or tote bag, say a polite “thank you,” and move on without thinking twice about the company that gave it to us.

For small businesses, branded swag is one of the least effective forms of advertising. It won’t increase revenue or keep your brand top-of-mind for potential customers. Instead, that money can be spent on things your customers will truly appreciate and value.

Here are better ways to invest in your business:

• Offer promo discounts or coupons to encourage purchases.
• Send thank-you notes and gifts to loyal customers to build stronger relationships.
• Host giveaways that feature your actual products or services.
• Hire additional help to improve customer service and enhance the client experience.
• Invest in market research and product development to expand or improve your offerings.
• Elevate your brand with better packaging that makes your products stand out.
• Expand your offerings with new products or services your customers want.

These strategies create meaningful value for customers and lead to real growth over time. While it may feel exciting to see your logo printed on merchandise, it often just results in unused swag sitting around your office.

Think about what your customers value most—and invest in ways that make their experience better, not just in products that put your logo out into the world.

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