MBA907 Do Bonuses Increase Sales?
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December 25, 2017
‘Tis the season — let’s talk giving! Offering free bonuses is a common sales-boosting strategy, used by everyone from the smallest mom-and-pops to the biggest corporations. But do these giveaways work? If you’re starting or running your own business, it’s important to use every resource wisely. You’ve got to carefully consider everything you offer to customers, or it’s money down the drain. The key to effective bonuses is to remember what they really are: not gifts, but investments. The value of the investment relative to the value of the outcome has to be favorable, for both you and the customer. Give the wrong bonus, and the outcome is nothing but increased expenditures and lost credibility. It’s all about the ROI. Today, we’re discussing exactly what kinds of bonuses work, and what kinds don’t. We’ve used bonuses to promote our own products, from our webinar software service to The $100 MBA course. We’ve seen bonuses succeed, and we’ve seen them fall flat. In that time, we’ve learned a thing or two about…