Comments on: On Being Paid to Try Out Products

By: Gerardo Ritchey

Gerardo Ritchey — Mon, 08 Jun 2009 20:11:49 +0000

As the marketplace for all kinds of products keeps getting more and more crowded, companies have to figure out some way of standing out. More and more companies are starting to jump on the incentivized consumerism bandwagon, and some have figured out that it’s just better to straight up pay their customers to use the product. All things being equal people have this tendency to take the money. I’m involved in an program that does exactly that, so I’m trying to stay on top of the trend.

By: Sonia Simone

Sonia Simone — Sat, 30 May 2009 03:41:42 +0000

As the cost to acquire a customer goes up, and we get smarter about keeping customers (so customer lifetime value also goes up) it could absolutely make sense to pay people to try stuff.

Whether it would work psychologically is another question, though. It’s kind of like paying someone to date you. I can see a prospect wondering “how good could it be if they’ll *pay* me to try it.”

I think some of the telecom companies have paid prospects to switch. (Followed up, of course, with the same crappy service that virtually all telecoms have, thus throwing the money away.)

Sonia Simones last blog post..What I Love About My Job

By: Deb Owen

Deb Owen — Thu, 28 May 2009 14:51:19 +0000

I like where you’re going with this Charlie.

To your final point, I agree that the over-promise/under-deliver companies will begin fading away. Not only as a function of the changing landscape in marketing, but thanks to the economy as well. People (and companies) being tighter with their money means they expect more for what they spend. I’m seeing evidence of this now as companies who have lived on the ‘under-deliver’ model for years now don’t know how to readjust. They don’t understand why it’s not working anymore. (These are often the same companies that thought building relationships and utilizing social media was an idiotic concept a few years ago. They just aren’t able to see the way things are moving for some reason.)

I also like Ankesh’s point about Zappos and creating loyalty by passing a greed barrier. That’s an interesting concept when applied to clients. I’m going to have to give that one some thought.

Thanks guys!
All the best!
deb

By: Ankesh Kothari

Ankesh Kothari — Thu, 28 May 2009 14:28:15 +0000

Thanks Charlie.

Where I see it going is – marketers paying people – not to get them to try the product out. But marketers paying money to involve folks further.

Example: Zappos. They famously give a choice to all their employees when their training session is over: if you quit now – you get $2,000.

Thats a very tempting offer: earning $2,000 without doing any work – just for quitting. But employees who don’t take up the offer become more loyal to Zappos. Its like a greed barrier they cross.

I think what Zappos does with employees – a few marketers may end up doing too. Pay their clients to leave them. Because it makes the clients who don’t leave even more loyal.

Ankesh Kotharis last blog post..4 Stages of Marriage (Or 4 Stages of Job Life Cycle)