The right (and wrong) way to use discounts
By Chelsea Wilson
Instructor Support
Summary
As you market your course, you might consider using discounts at strategic points. We'll share When, why, and how to offer a discount code for your course.
What's the best discount strategy?
It depends on what you're trying to accomplish. We'll list a few strategies below but you should always use discounts sparingly. While a discount is a great way to lower the price barrier and increase conversion, there may be unintended consequences.
- Constant discounts and promotions lower your brand value and make your original price feel arbitrary.
- They also condition students to wait for the next sale and never pay your original price.
- And lastly, you need to think about what your discounts look like to students who have already paid. If you go to your most engaged audience and offer them first access, but a week later you promote your course with a 25% discount, how might your loyal audience feel?
Use discounts sparingly and strategically.
Here are a few we recommend:
Early bird - If you have a small audience or none at all, consider an "early bird" offer where they might receive 10-20% off the list price. You can also offer an expiring discount to your waitlist (if you have one) as a special promotion.
Abandoned Cart - Add a discount code to your Abandoned Payment email sent from your Maven course. Keep this one between 5-15% off. Remember, the student was already starting to pay, but something pulled them away. A small discount might nudge them back over the edge.
Affiliate Discounts - Create discount codes for others to distribute to their network. If you're running a course on graphic design, you might go to a few graphic design blogs and social accounts, give them a custom discount code and ask them to announce your course to their audiences. The discount code not only gives the student 5-25% off but also acts as a tracking mechanism so you know where your students came from. Sometimes, affiliates will look for revenue share from the course sales they drive.
Scholarships - Related to discounts but different. A scholarship is often a discount between 50-100% off the list price and can be used for many different reasons. Because CBCs often have a higher price point, especially when they're just getting started, they may be inaccessible to some audience members. Scholarships are a great way to create a more inclusive environment so that the most driven, promising students don't face the price point as a barrier to entry. You can mentioned that you have scholarships available in your landing page FAQ. Or, you might integrate it into your application form where students have to explain why they may qualify.
If I provide a discount, how does that affect my revenue share with Maven?
Maven's 10% share comes from the price a student pays, not your original price.
Here's an example:
- Original price: $1,000; Maven earns: $100; Stripe fee: $26.40 = You earn: $873.60.
- You offer a 25% discount.
- New price: $750; Maven earns $75; Stripe fee: $19.88 = You earn: $655.12.
- The Maven fee is processed immediately (10%) on the amount the student paid. Then Stripe takes its fee (2.9% + 30¢).
How do I create a promo code (coupon)?
You'll create your own custom coupons in your Stripe dashboard. Check out how to create a discount code and get answers to more FAQs here.