Offering a discount or a lead magnet is a great way to improve your conversion rate because it lowers the barrier to entry for people who are on the fence about buying from you. If they see that they can get started with your program for a fraction of the cost, they’ll be more likely to take action. In this blog post, you’ll discover how to use discounts and lead magnets strategically so that you can boost your conversion rate without selling yourself short.

3 Reasons to Offer a Discount or a Lead Magnet

1. It lowers the barrier to entry.

If someone is on the fence about buying from you, a discount or freebie can be just the thing to tip them over into becoming a paying customer. By offering a discount, you’re essentially saying, “Hey, I want to make it easy for you to try my course or membership. Here’s a coupon code for 10% off.” And who doesn’t love a good deal?

2. It shows that you’re generous.

When you offer a discount or freebie, you’re effectively saying, “I’m generous and I want to help you.” And who doesn’t want to do business with someone who’s generous? Offering a discount or freebie is a great way to show potential customers that you’re generous and that you care about helping them achieve their goals.

3. It builds goodwill.

Even if someone doesn’t take advantage of your discount or freebie right away, they’ll appreciate that you offered it to them. And when they’re ready to buy, they’ll remember how generous you were and they’ll be more likely to buy from you than from someone who didn’t offer a discount or freebie.

Types of Discounts and Lead Magnets 

There are a few different ways that you can offer discounts and freebies for your online courses and memberships. You can offer a discount for signing up for a course or membership, offer a free trial period, or give away a freebie such as an eBook or video series. Each of these options has its own advantages and disadvantages, so it is important to choose the right option for your business. 

Lead Magnets

A lead magnet is simply an incentive that you offer to potential customers in exchange for their contact information. It could be a free e-book, mini-course, cheatsheet, or video series— anything that would be valuable to your target audience and that they would be willing to exchange their contact information for.

The main reason for offering a lead magnet is simple: it helps you attract more Perfect-Fit clients—i.e., people who are actually interested in what you’re selling. By providing valuable content up front, you can quickly weed out the tire-kickers and time-wasters who are just looking for freebies and aren’t serious about doing business with you. 

Not only does this save you time in the long run, but it also allows you to focus your marketing efforts on people who are actually interested in what you have to say— which leads to better conversion rates and more sales down the line. 

When choosing a lead magnet, it’s important to consider what will be most valuable to your Perfect-Fit Client. If you’re not sure what type of content would be most helpful or appealing to them, consider conducting a survey or sending out a questionnaire. You can also look at other businesses in your industry to see what type of content they are offering as part of their lead magnets. 

Sign-up Discounts 

Sign-up discounts are a great way to attract new customers. They show that you are confident in the value of your course or membership and that you are willing to invest in your Perfect-Fit Client. However, sign-up discounts can also be costly if you do not have many people signing up for your course or membership. In order to make sure that you are getting the most bang for your buck, make sure to set a minimum number of sign-ups required in order to receive the discount. 

One advantage of offering a discount is that it lowers the barrier to entry for potential customers. This can be especially helpful if your courses or memberships are on the higher end of the price spectrum. A discount can also make people feel like they are getting a good deal, which can encourage them to sign up for your course or membership.

The main disadvantage of offering a discount is that it can devalue your courses or memberships in the eyes of potential customers. If people see that you regularly offer discounts, they may not sign up for your course or membership until you offer a discount again. This can lead to people feeling like they need to wait for a sale before they purchase your course or membership, which can decrease your revenue. 

Free Trials 

Free trials are another great way to attract new customers. One advantage of offering a free trial period is that it allows potential customers to try out your courses or membership before they commit to paying for it. This can be helpful in convincing people to sign up for your course or membership because they will have first-hand experience with what they will be getting before they have to pay anything.

The main disadvantage of offering a free trial period is that it can lead to people signing up for your free trial and then cancel their subscription before they are charged. This means that you will have spent time and resources on someone who is not going to be a paying customer. To combat this, you could require people to enter their payment information when they sign up for the free trial so that you can charge them automatically when the free trial period ends. 

Of course, once someone takes advantage of your freebie or discount, it is important that you deliver on the quality of your product. This will help ensure that they continue using your product after their free trial or discount expires. If you do not provide quality content, people will not be likely to continue using your product or recommending it to others.

One final note on discounts and freebies: it is important to make sure that your prices reflect the value of your product. Do not give away too much or offer too big of a discount, as this will devalue your product in the eyes of potential customers. By offering discounts and freebies, you can show potential customers that you are confident in the value of your product and that you are willing to invest in them. This will help attract more customers and grow your business.