The two phrases 'giving things away' and 'making a profit' seem mutually exclusive, but in reality these ideas have more in common than we think. Drug company representatives have been giving away promotional merchandising items for years, which is why doctors' offices are sometimes stacked with branded stationary and equipment. Of course, a free pen isn't likely to cloud a medical professional's judgement but the name on the pen will most likely be more memorable as a result.

Memorability is one of the main aims of producing promotional merchandise, in a best-case-scenario your logo may be seen a lot more often by your potential customers than from your paid advertising, provided the recipient keeps the 'freebie.'

This is where the usefulness of the item will come into play. The ubiquitous Sports Direct jumbo mug is the recent king of promotional merchandise in the UK. The Sports Direct website started including them free in orders over a certain amount, and due to the gallons of tea consumed by most Britons they are to be found in homes and offices across the country. The logo on them is MASSIVE- hence the 'jumbo' size of the mug, and can be read from quite a distance away. Altogether a great combination of form and function.

Some promotional products work less well. For example, promotional t-shirts are tricky to pull off for businesses. They may be worn by the less fashionably-minded of us, but unless the logo design is iconic or very attractive the likelihood of it becoming an essential part of anyone's wardrobe is unlikely. The foremost attraction of a promotional product is that when it is used often this provides you with free advertising-but if it gets thrown at the back of the wardrobe it can be a waste of your time. If the logo is small enough then people may be more likely to wear it, but this partially defeats the object of you manufacturing it.

Most companies create promotional merchandise that toes the line between 'useful' and 'indispensable' - if a consumer really needs that product anyway, the chances are they already have one. For products such as mugs this doesn't matter as most people have more than one, but for items like diaries the consumer is unlikely to want/need more than one. Aim to create a product that the consumer never knew they needed or didn't realise they needed. Rain macs and umbrellas are a perfect example of this, because in the right weather conditions (for you) they will get snapped up. Key lanyards (a neck cord that you can put keys on) are another good example as they are much more practical than typical key rings and therefore more likely to be kept.

So the lucky recipient of your promotional merchandise will get a useful product and a positive brand experience from your generosity- and in return you will get free advertising and your name put firmly in place in the recipient's memory. When promotional merchandising works, it can produce a fantastic reciprocal relationship. So consider the advantages of creating products you will give away, and the possible return on investment this can bring.