How do I run a launch promotion without hurting margins?
Quick answer
Discount where the payout risk is low: resets, smaller account sizes, or bundles of evaluations. Keep the promotion short, cap it, exclude add-ons, pay affiliates on the discounted price, and check that each promoted sale still has positive contribution after expected payouts.
Detailed answer
Margin-safe promotion ideas:
- Discounted resets for existing customers.
- Bundles: two evaluations at a lower combined price.
- Free trial plus offer for converting trial users.
- Competitions with challenges as prizes.
- Smaller sizes at a discount, large sizes at full price.
Check the numbers before launching: price after discount, minus fees, commission and platform cost, minus expected payouts. If it is negative, change the offer. Low fixed costs help here; a firm without a monthly platform fee can run a quiet promotion month without the fixed bill eating it.
Example
Instead of 30% off every challenge, offer a free reset with every purchase during launch week. The cost is only incurred when a trader breaches and uses the reset, and resets bring traders back to trade again.
Model before launching
Estimate how many buyers will use the promotion and what it will cost in payouts and resets. If the total exceeds what the launch is worth to you, scale it back before announcing it.
PropExecutor team · Updated
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