If you often have customers switch one product for another or if you have a downloadable product that you want to give away to customers, then it can be a bit of a pain to manually create an order. You could manually type in their information, run a search for the products, set the payment and shipping info, and then save the order. That does work, but it's time-consuming.
To speed things up, there's a handy extension that asks you for a customer name, asks you for one or more products you're giving away, and then creates the order for you. It probably cuts the amount of time you spend giving away a product in half.
You'll need the WooCommerce Give Products plugin, available at WooThemes.com, installed and activated on your site.