{"id":1106,"date":"2022-11-07T06:00:00","date_gmt":"2022-11-07T13:00:00","guid":{"rendered":"https:\/\/stephenfbrown.com\/?p=1106"},"modified":"2022-11-07T06:00:00","modified_gmt":"2022-11-07T13:00:00","slug":"avoid-this-1-marketing-discounting-mistake-and-keep-members-longer","status":"publish","type":"post","link":"https:\/\/stephenbrownsblog.com\/index.php\/2022\/11\/07\/avoid-this-1-marketing-discounting-mistake-and-keep-members-longer\/","title":{"rendered":"Avoid This #1 Marketing Discounting Mistake and Keep Members Longer"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/stephenfbrown.com\/wp-content\/uploads\/2022\/09\/The-1-Discounting-Mistake-Marketers-Make-Plus-How-to-Retain-Members-Longer2.jpeg\" alt=\"The #1 Marketing Discounting Mistake\" class=\"wp-image-1108 lazyload\"\/><noscript><img decoding=\"async\" width=\"1000\" height=\"750\" src=\"https:\/\/stephenfbrown.com\/wp-content\/uploads\/2022\/09\/The-1-Discounting-Mistake-Marketers-Make-Plus-How-to-Retain-Members-Longer2.jpeg\" alt=\"The #1 Marketing Discounting Mistake\" class=\"wp-image-1108 lazyload\" srcset=\"https:\/\/stephenbrownsblog.com\/wp-content\/uploads\/2022\/09\/The-1-Discounting-Mistake-Marketers-Make-Plus-How-to-Retain-Members-Longer2.jpeg 1000w, https:\/\/stephenbrownsblog.com\/wp-content\/uploads\/2022\/09\/The-1-Discounting-Mistake-Marketers-Make-Plus-How-to-Retain-Members-Longer2-300x225.jpeg 300w, https:\/\/stephenbrownsblog.com\/wp-content\/uploads\/2022\/09\/The-1-Discounting-Mistake-Marketers-Make-Plus-How-to-Retain-Members-Longer2-768x576.jpeg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/noscript><\/figure>\n\n\n\n<h1 class=\"has-text-align-center wp-block-heading\">Dodge The #1 Marketing Discount Mistake<\/h1>\n\n\n\n<p>Remember those studies they did on the word, \u201cBecause?\u201d<\/p>\n\n\n\n<p>They had their researchers try to cut into a line of waiting people.<\/p>\n\n\n\n<p>Sometimes the researchers said, \u201cCan I cut in front of you?\u201d<br>And other times they said, \u201cCan I cut in front of you because I\u2019m in a hurry?\u201d<\/p>\n\n\n\n<p>Notice the reason given is rather lame. You can assume from the first question that they\u2019re in a hurry.<\/p>\n\n\n\n<p>But the point of the study was to see if using the word \u201cbecause\u201d made a difference, and it did.<\/p>\n\n\n\n<p>Something like twice as many people allowed the researcher to cut in line if they used the word \u201cbecause.\u201d<\/p>\n\n\n\n<p>This even worked if the researcher said, \u201cCan I get in line ahead of you because I want to?\u201d<\/p>\n\n\n\n<p>That might be a dumb reason, but it still worked.<\/p>\n\n\n\n<p>Sooner or later, you\u2019ll be running a sale or a discount in your online business.<\/p>\n\n\n\n<p>Hopefully it\u2019s sooner because discounts make a lot of sales.<\/p>\n\n\n\n<p>But here\u2019s what you might not realize: If you run a discount without giving a reason why, you are devaluing your product.<\/p>\n\n\n\n<p>\u201cI\u2019m discounting the XYZ product today only!\u201d<\/p>\n\n\n\n<p>Yes but\u2026 <em>why??<\/em><\/p>\n\n\n\n<p>Is the product now worth less than before?<\/p>\n\n\n\n<p>Let\u2019s say you\u2019re creating a new course. Offer a discount for people who buy the course BEFORE it\u2019s available <em>as a reward for trusting you<\/em> or because you want their input.<\/p>\n\n\n\n<p>Give your readers a week or two to sign up before the launch at the discounted priced and you\u2019ll make lots of money up front.<\/p>\n\n\n\n<p>You\u2019re discounting because they are early birds. Once it launches, it will be at full price, and you will never discount it again.<\/p>\n\n\n\n<p>Well, actually you will. Let\u2019s say your course will launch at $199 but your pre-launch discount is $99. Once your course launches, you will never gain sell it at $99. But you can raise the price when you update the course to $399, and then later discount it for a period of time back to $199, as long as you give them a reason.<\/p>\n\n\n\n<p>See how this works? Giving a reason for a discount is hugely powerful because it validates the price for the customer and it doesn\u2019t devalue the product.<\/p>\n\n\n\n<p>Reasons to give a discount: It\u2019s a holiday, your birthday, you\u2019re migrating your website, you\u2019re celebrating the birth of your baby, you\u2019re buying a new home, it\u2019s the one-year anniversary of your product\u2026 really any reason can work.<\/p>\n\n\n\n<p>Just be sure to limit the time of the discount &#8211; such as the next 48 hours or 5 days \u2013 and always give a reason why you\u2019re doing it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>When I Refuse to Discount<\/strong><\/h2>\n\n\n\n<p>One thing I don\u2019t do is discount something because a customer asks me to. That\u2019s just my personal preference.<\/p>\n\n\n\n<p>If you choose, you can negotiate with a customer who asks for a discount. For example, you could offer to remove bonuses for the lower price.<\/p>\n\n\n\n<p>And please know that just because marketer \u201cX\u201d sells a product similar to yours for a lower price is never a reason to discount your product.<\/p>\n\n\n\n<p>Let\u2019s not forget there are traffic generation programs that are free, that cost $17, and that cost $10,000. Which one do you think provides more value?<\/p>\n\n\n\n<p>That\u2019s right\u2026 the higher the price, the higher the perceived value. I\u2019ve always thought it\u2019s better to have 100 customers who buy a $1000 product than it is to have 10,000 customers who buy a $10 product.<\/p>\n\n\n\n<p>The $1000 customers have money to spend, have already spent some of it with you, and will be open to the next upsell you send. And in terms of customer service, it\u2019s far easier to take care of 100 customers than 10,000 customers, too.<\/p>\n\n\n\n<p>When you\u2019re tempted to lower your price because Joe over there is selling something that looks like your product for peanuts, don\u2019t do it. The last thing you want is a reputation and being a \u201cBargain Basement Bob.\u201d<\/p>\n\n\n\n<p>Now then, let\u2019s talk about a slightly different discount\u2026 one that the customer must earn through loyalty\u2026<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/stephenfbrown.com\/wp-content\/uploads\/2022\/09\/The-1-Discounting-Mistake-Marketers-Make-Plus-How-to-Retain-Members-Longer.jpeg\" alt=\"The #1 Marketing Discounting Mistake\" class=\"wp-image-1107 lazyload\"\/><noscript><img decoding=\"async\" width=\"1000\" height=\"667\" src=\"https:\/\/stephenfbrown.com\/wp-content\/uploads\/2022\/09\/The-1-Discounting-Mistake-Marketers-Make-Plus-How-to-Retain-Members-Longer.jpeg\" alt=\"The #1 Marketing Discounting Mistake\" class=\"wp-image-1107 lazyload\" srcset=\"https:\/\/stephenbrownsblog.com\/wp-content\/uploads\/2022\/09\/The-1-Discounting-Mistake-Marketers-Make-Plus-How-to-Retain-Members-Longer.jpeg 1000w, https:\/\/stephenbrownsblog.com\/wp-content\/uploads\/2022\/09\/The-1-Discounting-Mistake-Marketers-Make-Plus-How-to-Retain-Members-Longer-300x200.jpeg 300w, https:\/\/stephenbrownsblog.com\/wp-content\/uploads\/2022\/09\/The-1-Discounting-Mistake-Marketers-Make-Plus-How-to-Retain-Members-Longer-768x512.jpeg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/noscript><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How a Small Discount Retains Members Far Longer<\/strong><\/h2>\n\n\n\n<p>Residual payments come in month after month, and they could be for software, coaching, memberships and so forth. Let\u2019s say that you\u2019re offering coaching. You might want to tell them up front that as of month 3 (or 4 or 5) you will be giving them a discount on the monthly fee. The reason you give is because it helps with your scheduling and you\u2019re rewarding the customer for that.<\/p>\n\n\n\n<p>In our example, discounting your coaching starting with month 3 gives your student a great incentive to stick around in month 2 and beyond, because starting in month 3 they will pay less. Plus, coaching gets easier for you after a couple of months, too, because the client has gotten into the swing of things and you now understand what your client needs from you.<\/p>\n\n\n\n<p>What if you offer a monthly subscription to your membership site? You might consider discounting member dues starting with month 3 or 4. Again, it gives them a good incentive to stick around. And the reason you can give for the discount is that it\u2019s a reward for your best customers.<\/p>\n\n\n\n<p>You might also place members in a coveted \u2018inner circle\u2019 once they reach this milestone, with added benefits. Yes, they are paying less and receiving more, but consider this:<\/p>\n\n\n\n<p>Most members drop off after 2 to 6 months. Imagine if you can keep them around for many months or even years at a discounted rate \u2013 it will be well worth it for you to do so. Remember: Give a reason for every discount you offer and consider offering discounts to members who stay with you for a predetermined length of time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dodge The #1 Marketing Discount Mistake Remember those studies they did on the word, \u201cBecause?\u201d They had their researchers try to cut into a line of waiting people. Sometimes the researchers said, \u201cCan I cut in front of you?\u201dAnd other times they said, \u201cCan I cut in front of you because I\u2019m in a hurry?\u201d &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/stephenbrownsblog.com\/index.php\/2022\/11\/07\/avoid-this-1-marketing-discounting-mistake-and-keep-members-longer\/\"> <span class=\"screen-reader-text\">Avoid This #1 Marketing Discounting Mistake and Keep Members Longer<\/span>Read More &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":1108,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"pagelayer_contact_templates":[],"_pagelayer_content":"","slim_seo":{"title":"Avoid This #1 Marketing Discounting Mistake and Keep Members Longer - Stephen Brown&#039;s Blog","description":"Dodge The #1 Marketing Discount Mistake Remember those studies they did on the word, \u201cBecause?\u201d They had their researchers try to cut into a line of waiting peo"},"footnotes":""},"categories":[11],"tags":[25,609,678,679,855],"class_list":["post-1106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sales","tag-1-marketing-discounting-mistake","tag-keep-members-longer","tag-marketing-discounting","tag-marketing-discounting-mistake","tag-retain-members-longer"],"_links":{"self":[{"href":"https:\/\/stephenbrownsblog.com\/index.php\/wp-json\/wp\/v2\/posts\/1106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stephenbrownsblog.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stephenbrownsblog.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stephenbrownsblog.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stephenbrownsblog.com\/index.php\/wp-json\/wp\/v2\/comments?post=1106"}],"version-history":[{"count":0,"href":"https:\/\/stephenbrownsblog.com\/index.php\/wp-json\/wp\/v2\/posts\/1106\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stephenbrownsblog.com\/index.php\/wp-json\/wp\/v2\/media\/1108"}],"wp:attachment":[{"href":"https:\/\/stephenbrownsblog.com\/index.php\/wp-json\/wp\/v2\/media?parent=1106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stephenbrownsblog.com\/index.php\/wp-json\/wp\/v2\/categories?post=1106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stephenbrownsblog.com\/index.php\/wp-json\/wp\/v2\/tags?post=1106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}