Do you remember when pharmacies were giving out free glasses of soda? Probably not, because you would have to have been in Atlanta, Georgia in 1886. John Pemberton’s iconic launch of Coca-Cola is perhaps the first recorded example of promotional marketing – and forever changed the face of the advertising industry. There were other promotional pioneers. John Wedgewood, the famous potter, used to send free samples of his work to well-known individuals. Little did he know he was paving the way for the tidal wave of merchandise that celebrities receive daily today!
Every year for Christmas, many of us will link arms with friends and family and pull backward on a strange candy-shaped bit of cardboard, hoping for a “bang!” followed by a quintessentially pointless plastic present (miniature sewing kit, anyone?). This little festive routine is all thanks to a marketing attempt by an entrepreneur called Cracker Jack. These are perhaps the oldest examples of this type of marketing. Poppycock – says one historian – the history of promotional marketing can be traced back to Ancient Egypt when merchants used their own brand of hieroglyphics on pottery for sale to encourage familiarity among their consumer bases.
Prop firms are no strangers to the beguiling appeal of promotional efforts to boost their marketing. They may not be able to give out “tasters” in brick-and-mortar stores, nor engrave their initials into items on consumers’ mantelpieces for all to see. Nonetheless, there are plenty of ways that prop firms market themselves to traders – and the latter do very well out of these attempts!
When it comes to proprietary trading, promotional marketing is a mutually beneficial endeavor. When used effectively, prop firms will walk away with a larger and more loyal customer base. From the traders’ perspective, prop firms jostling for their stamp of approval (and crucial first deposit) will mean a growing pool of promo codes, discounts, and bonuses. Bring on the competition!
Prop trading is a fast-paced industry exploding in popularity. Traders are seeking out quality platforms as revenues of capital, with some prop firms offering to fund clients with up to $5 million and a 90% profit share. It is the gold rush of retail trading and prospectors are piling in thick and fast. Where there is high-profit potential, competition will never be far behind, and prop firms are looking for ever more innovative ways to pitch themselves to new clients.
In this article, we will walk you through the types of promotions offered by prop firms. We will run you through the pros and cons of utilizing certain strategies and suss out the best deals out there. In prop firm discounts, as in life, bigger is not always better. Remember to look under the hood of the prop trading platform in general and evaluate for yourself whether the funding on offer meets your criteria.
First off, let us explore the essential if obvious question, why would prop traders use discounts and promo codes? Why give anything away for free?
Sure, it may be obvious how prop firms benefit from marketing themselves – but how about you as the consumer, what is in it for traders?
As we can see, promotional marketing benefits both prop firms and funded traders. Fortunately for both parties, the end goal – while on the same horizon – is different and therefore they are not reaching for the same pot. Prop firms want a growing customer base of loyal and high-earning traders. Traders, on the other hand, want a trading platform that is trustworthy and transparent and gives them the best possible chances of success.
How exactly they go about marketing themselves to would-be traders will vary from prop firm to prop firm. Some platforms will use one-off discounts, slashing the entry fees by as much as 50%. Others may waive them altogether and encourage traders to try their platforms for free and get a feel for the features and software on offer = hoping this will be enough of a hook. In the next section, we will do an overview of the various strategies deployed by prop firms when they are looking to expand their trader base.
Here are some of the most popular methods used by proprietary trading platforms to increase their pool of clientele:
Surely – cheaper is better and the more promotions, discounts, and giveaways attached to a prop firm the easier the decision to register for an account. While saving money is clearly a sensible endeavor, and the satisfaction of cutting costs as a starting trader is not to be discounted, remember that when the promotion ends you will still be trading with that firm. Ideally, you want to be as discerning as possible in your selection. Choose a prop firm that is attractive not just now – for its temporary marketing – but in the long term, for the trading technology and platform features that will boost your chances of success in the markets.
That said, here are some of the general pros and cons of prop trading marketing promotions:
Cracker John and John Pemberton may have carved their faces into the Mount Rushmore of marketing, but not all prop firms will add their features to the hill. Correctly implemented and well-timed marketing strategies can be highly effective for prop firms. An increased client base – but a more loyal one to boot –could make the difference between failure or success for a newcomer prop firm making a name for itself in a crowded industry.
From the traders’ perspective, promotional marketing can be a goldmine – literally in some cases! That said, it pays in more ways than one to be selective. Consider not just the short-term financial gains of a promotional offer but the long-term viability of a future partnership with the prop firm in question. The landscape of promotional marketing continues to shape the prop firm industry with new mountaintops and valleys every day. Whether you end up in a peak of profit or dip of loss remains to be seen. Be discerning in your choice but do take advantage of the generous array of growing discounts on offer!
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