Tanner Kwiat
John Pappas
Connor Davidson
Isha Nagpal
St. John's University
Charles Wankel
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The business gives away free water bottles that have advertisements on the outside. These advertisements pay for the full price of the product as well as a donation to one of the many charities working with FreeWater. They eventually look to expand this business model to other items such as food, clothing and alcohol
Advertising is nothing new, nor is bottled water, so what makes this innovation so genius? The decision to make the product free to the consumer and have all costs taken care of by advertisers. In exchange for a heftier cost, advertisers have free reign over the design of the bottle and are able to advertise in a medium that makes a positive impact not only on consumers, but on the world.
The promise is that 10 cents per bottle will be donated to end the global water crisis, but Clifford’s confirms that at the current stage of the company’s growth, FreeWater is donating more than 10 cents. As of December of this year, FreeWater has sold 360,000 bottles of water, and donations have led to eight water projects built in India and two in Kenya. This advertising model for bottled water is just the beginning of Clifford’s vision, as he proclaims, “We aim to be the leader of negatively priced goods … One day I see things becoming free plus fifty percent”. Everyone deserves free water, food, medicine, clothing, etc. - and Cliffords intends to make this a reality by extrapolating this model outwards. The charitable aspect is at the forefront of this expansion, with each new product being offered, a portion of profits being donated to different causes. FreeWater is simply scratching the surface of the untapped potential of manufacturing negatively priced goods, and Cliffords aims to grow his business and be a leader in this innovative market.
FreeWater’s efforts align with three major United Nations Sustainable Development Goals. The first is Clean Water and Sanitation. The prospects of clean water are not offered solely to consumers but to nations who need it via their donations. The second is Good health and well-being. The wells built globally, and the water they provide will greatly improve the health of those who previously lacked it. The last one is Responsible Consumption and Production. FreeWater only manufactures its water in Aluminum cans and Cardboard cartons and never intends to utilize plastic. In the long term, they plan to cultivate, manufacture, fill, distribute, and recycle beverages made from 100% hemp cartons. If FreeWater continues to grow at its current rate, it's likely to continue to meet more goals as it expands into different product offerings.
The origins of FreeWater stem from 2015 when Cliffords started a nonprofit organization to help refugees in Eastern Europe. In helping those refugees, it was revealed that most of the population had left due to a lack of food and water in their home countries. The question left in Clifford’s mind was, “How can I create a new way to donate money to these causes but change the experience behind donation?”. The solution to that question came in the form of raising money by giving free products - a consumer was able to take a product for free, and with no cost to them, money was raised for that cause. In the interview he stated “I want to help those who don’t have the resources, before I help myself. Cliffords had the vision of providing food using this advertising model but ultimately decided to begin on a smaller scale and utilize bottled water as the first practical application. Bottled water served as an excellent starting medium for Cliffords to express his idea, and it showcased just how effectively negatively priced goods can raise money for charity.
Garnering a sizable following in a short amount of time with 946,300 followers on TikTok, 351,000 on Instagram, and 2,246 on X (fka Twitter), FreeWater has made a positive impact on the global water crisis since they were founded in 2021. FreeWater has sold over 360,000 bottles of water, contributing 10-cent charitable donations to Well Aware and Charity Water which are organizations dedicated to providing a clean and reliable water source for people and communities that are in crisis. So far, these donations have led to the creation of eight water projects in India and two in Kenya. With paid advertisements making up the cost of FreeWater, and with 10 cents being donated per bottle, this means that every 150 FreeWaters provides enough money for someone to have a reliable source of water for the rest of their life. FreeWater’s bottles are made of paper and aluminum, making them more environmentally friendly and safer for consumption than plastic bottles. FreeWater’s business aims to have 10% of Americans save money and drink one free water a day since the average American buys three bottles of water daily. Clifford states that if this goal ends up being met then FreeWater would end up donating “$1.25 Billion a year” which would play a significant role in there being an abundance of water all throughout the world.
Using the charitable money for the FreeWater product to establish water sources in underdeveloped parts of the world is only the start of the impact that FreeWater plans to make. As Clifford reflects on his time in Kenya, he emphasizes how badly off some of the people they are helping are, with some families making a measly $10 in household income per month! So, while replenishing the water supply is a great way to aid families in need, he highlights that it’s only part of the solution as Clifford proceeds to ask “what the next free product should donate to,” whether that cause is education, electricity, or basic sanitation. This leads to Clifford’s wanting to become the Amazon 2.0 of negatively priced products by launching their freegrocery.com website, which has a concept similar to FreeWater but expands to all groceries that someone would find at Costco for free. Similar to FreeWater, these groceries would be paid for by brand advertisements, with a percentage of the money made from each grocery being donated towards other charitable causes globally. This would be a game changer, because the more products created, then billions of more dollars would be donated to all different causes without paying more taxes or swiping a credit card.
Offering free water can attract more consumers, especially in locations where access to clean water is a concern. The advertisement model allows the company to cover the costs associated with providing the free water.
Advertisements on the water dispensers or containers can increase brand visibility. Consumers may associate the brand with a positive and socially responsible initiative, potentially leading to increased loyalty.
The company can generate revenue by selling advertising space on their water dispensers or packaging. Advertisers may be attracted to this unique and potentially high-visibility medium for reaching their target audience.
Providing free water, especially in areas with limited access to clean water, can contribute to a positive public image. Companies that align their business practices with social responsibility may gain favor among consumers.
In regions where clean water access is a challenge, providing free water can address a fundamental human need. This initiative can contribute to improving public health and well-being.
Offering free water can make a critical resource more affordable for individuals and communities, especially those facing economic challenges. This can positively impact lower-income populations who may struggle to meet basic water needs.
Encouraging the consumption of tap water, as opposed to bottled water, can have positive environmental effects by reducing plastic waste. It aligns with sustainability goals and promotes responsible resource management.
The advertising revenue generated through this model can be utilized to cover the costs of providing free water. This creates a sustainable business model that benefits both the company and the community by addressing a basic need without relying solely on philanthropy.
The initiative promotes a sense of corporate social responsibility. Businesses that actively contribute to societal well-being and environmental sustainability can enhance their public image and build a positive reputation.
The presence of free water dispensers in public spaces can serve as hubs for community engagement. People may gather around these locations, fostering a sense of community and providing opportunities for social interaction.
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