Promo Code Change => $50 max

Ok Guys,

I've just read the newsletter and understand that starting December 11 we cannot give away $97 max discount. It will be $50 maximum only :(

But ok, I think it is still the best bet in the industry.

Supernova


Check out instructions on how to apply the code !

We've been discussing this change since last night over in this thread in the offtopic forum.

Some key points seem to be that it's only a limit on the cash discount and so people will still be able to get a $50 cash discount plus some extra features like additional free domain registrations, free unique IP addresses or additional disk and bandwidth. So you'd be able to get 50% extra disk space and $50 off or 3 extra domain registrations and $50 off or something like that.

rlparker was also speculating that this move might be to reduce the "churn" from people signing up for a "throwaway" account that wanted to have for a year at $22.40 but where they had no intention of renewing at the end of the year.

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rlparker was also speculating that this move might be to reduce the "churn" from people signing up for a "throwaway" account that wanted to have for a year at $22.40 but where they had no intention of renewing at the end of the year.

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Yes, that make sense. Maybe that's why there are many 'dead' domains here as suggested in previous post.

Supernova


Check out instructions on how to apply the code !

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Yes, that make sense. Maybe that's why there are many 'dead' domains here as suggested in previous post.

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There aren't really that many dead domains here. Looking at the stats for other hosts, most have comparable domain expiry rates (execpt for a couple that seem to be in trouble). That post was just wondering what caused the one blip during Thanksgiving week of this year.

I also don't think that domain expiries are indicative of account churn. I think transfers are more indicative of churn.

It doesn't really change anything for affiliates or Dreamhost, since it's still $97 and you can still give it away.

Putting a $50 promo code against a $50 + free stuff promo code is the same as $50 vs. $97.

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It doesn't really change anything for affiliates or Dreamhost, since it's still $97 and you can still give it away.

Putting a $50 promo code against a $50 + free stuff promo code is the same as $50 vs. $97.

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That's very true, but I like the fact that it makes the new customer spend *some* money, which can only end up being a good thing in that it might discourage certain abusive users.

--rlparker

Since Dreamhost has a history of crazy sales/promos, I'd guess that it's just a temporary level-off period before the next trick.

Could be wrong... but I have a hard time believing they won't get an urge to burst towards the 1,000,000 domain mark.

No doubt that for now, it would seem geared towards slowing down new sign-ups and there are plenty of $22 customers they'd probably be better off without.

But at the same time, it does also lose good customers, since everyone likes money. If $97 promo codes were around when I signed up, I certainly would have used one... and I'd still be here several years later either way.

I'd be curious about any data they have on how many cheap sign-ups turn out to be good, renewing customers vs. the number that either a) leave after one year, or b) get booted before 1 year is up.

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But at the same time, it does also lose good customers, since everyone likes money. If $97 promo codes were around when I signed up, I certainly would have used one... and I'd still be here several years later either way.

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Yeah, me too!

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I'd be curious about any data they have on how many cheap sign-ups turn out to be good, renewing customers vs. the number that either a) leave after one year, or b) get booted before 1 year is up.

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I'd also be interested in knowing that. I may be way off base on my assumption that a very large number fall into one of those categories.

--rlparker

seiler said:

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I'd be curious about any data they have on how many cheap sign-ups turn out to be good, renewing customers vs. the number that either a) leave after one year, or b) get booted before 1 year is up.

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Yeah, like rlparker, I'd be very interested in this data.

I also suspect that there's not that much downside to an intro $69.40 rate (with additional features) vs. $22.40. The customer that dreamhost is interested in is one that intends to pay $119.40 at the end of the year for the renewal, so these customers should be *somewhat* willing to pay more for the first year - especially if they get some good long-term features for free.

It could also server to decrease transfer churn if these customers pick the additional free domain registration option because these additional free registrations are features that other hosts aren't providing so would factor into the financial comparison that customers make before switching.

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Yeah, like rlparker, I'd be very interested in this data.

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I think I'm the one who will renew again and again if DH keep the feature and stability like it is now. I find the community support is somehow very awesome here and learn a lot.

Supernova


Check out instructions on how to apply the code !

My question is are people more likely to stay if they have additional free features or, in rlparker's case, if they've paid more for their initial hosting year.

BTW, I'm reminded of some effect wherein people are sometimes more attracted to a product when you *raise* the price because they think they are buying a higher quality good. The idea is that if you can create the impression of a "premium" product, people could even feel they're getting a better value even though you're charging more.

If you assume that there are people signing up with one domain with full $97 discount at the end of the year they are looking at sorting out 1 domain.

With that $47 remaining you can offer 3 extra domains. If someone takes up this they will possibly have 4 domains to sort out after the year. Most hosts will probably offer 1 free domain so these people would be looking at paying extra at a new host if they need to keep the other 3 (lets say around $30). This could in some cases make the other host look like a more expensive option.

Also the difference between what they paid in the first year and what they pay in the second year isn't as large.

It could be another way to over-sell or get revenue for stuff they have on hand anyway. IPs, disk, bandwidth they have "in stock." Now they get revenue sooner on lifetime "feature bonuses" that mostly won't get used. Domains are cheap, and some people will buy the bonuses and not use them all. People will pay 119 and get 96 of lifetime "feature bonuses", and the referrer will get a buck. 119 is a drop in the bucket to spammers and warez peddlers, about as close to zero as 22. Dreamhost will get a revenue increase like a setup fee with a different name.

Any predictions on the coming Year-end sale and code? XmasHanukkahetc?

You know you want to click it!

I can see IPs, disk and bandwidth as being virtually free on the margin - and like you said, that's not even counting the fact that there's some fraction of people who won't use the features.

I wonder how much each domain name registration costs dreamhost?

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My question is are people more likely to stay if they have additional free features or, in rlparker's case, if they've paid more for their initial hosting year.

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Ah.. sorry for got you wrong. Hm, that makes me thinking of giving away domains in long terms sounds more interesting. It is domains for life right ?? As long as we host at DH ??

Supernova


Check out instructions on how to apply the code !

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Ah.. sorry for got you wrong. Hm, that makes me thinking of giving away domains in long terms sounds more interesting. It is domains for life right ?? As long as we host at DH ??

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No need to apologize!

And yes, it's domains for life. I think I said in another thread that it's a good deal if you actually need or will use the extra domains. After all, registration here is $9.95 per year and you're getting *lifetime* registration for an upfront $15 in "promo feature money".

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After all, registration here is $9.95 per year and you're getting *lifetime* registration for an upfront $15 in "promo feature money".

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Let's start with me, giving away $50 off with 2 lifetime domains. Still a good bargain ? ;)

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Let's start with me, giving away $50 off with 2 lifetime domains. Still a good bargain ? ;)

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Don't you think it is too early as the $97 off code will expired in December 11th ?

Besides, I think 3 additional domains offer is more interesting.

Btw, anyone has a tip on how to encourage someone who has subscribe with our code to refer someone else as I hope for second referral actually :P

Supernova


Check out instructions on how to apply the code !

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Don't you think it is too early as the $97 off code will expired in December 11th ?

Besides, I think 3 additional domains offer is more interesting.

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I think it all depends. You know that there used to be a gentleman's agreement on the forums for everyone to have the same level of discounted code? I don't know how I feel about this but it's an interesting thought. :)

I've been thinking myself what's going to be the most fair and generous code to give out - 3 domains and $50 or 4 domains and $37. You'd think it would be the 4 domains, but there are a lot of people who'd think that 4 extra domains is overkill for them and that they'd never use them.

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Btw, anyone has a tip on how to encourage someone who has subscribe with our code to refer someone else as I hope for second referral actually :P

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I don't think any encouragement is necessary or appropriate. These people are here to do their own thing. If they want to pursue the affiliate program they can do so, but I think the main thing is for them to be successful in their web hosting. In my opinion, that's the best way to get secondaries: just make sure that everyone gets all the help they need to have a "Happy Hosting" experience. And a lot of that help can be provided here on the forums or on the wiki!

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You know that there used to be a gentleman's agreement on the forums for everyone to have the same level of discounted code?

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Well, I'm aware that there were some past discussions that on occasion got fairly "passionate", but I was not aware that any gentleman's agreement ever evolved from those discussions.

IIRC, it all became pretty much of a moot discussion when enough "$97 off" codes appeared - you pretty much had to stay at, or near, that level to have a chance of yours being used.

--rlparker

That's why when I signed up I didn't use a promo code.

Too many friends to reward.

(OK, I was stupid and didn't read enough to know how it worked).

The *extras* really make it hard to have a good general purpose code. It all comes out of the $97 so value wise everyone was pretty even.

Wholly - Use promo code WhollyMindless for full 97$ credit until 12/11/07.

Since my existing code has '97' in it, I thought I will create a new one which will be having '50'. So I clicked on the button to create a new code, gave it a name and description and pressed 'Create this promo code now' button. Then I get a warning in red saying:

"Without any discounts or bonuses, it's not much of a promo code, is it?!"

But if I give bonuses, I will be losing money, not actually gaining which is the whole point of a promo code!?

I don't get it.

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Since my existing code has '97' in it, I thought I will create a new one which will be having '50'. So I clicked on the button to create a new code, gave it a name and description and pressed 'Create this promo code now' button. Then I get a warning in red saying:

"Without any discounts or bonuses, it's not much of a promo code, is it?!"

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It sounds to me like you forgot to either give free features or any cash discounts. With a code with "50" in its name, you should have put in $50 for every different plan type, right?

[/quote]But if I give bonuses, I will be losing money, not actually gaining which is the whole point of a promo code!?[/quote]
There's no losing money with promo codes. Everyone still gets $97 of referral money to split between promo codes features and discounts and your referral fee.

Thanks Lensman.

After posting, I looked at some other posts here and I understand now.

I've updated my blog post on how DreamHost coupons work. To anyone interested, here's the link.

Regards,
Sridhar.