Are all these referral incentives worth it?

General Chat šŸ’¬
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Feels like every week thereā€™s a new incentives being ran. Are they all worth it? Can freetrade provide any data?

Iā€™m sure they have helped us get to 1.3M, that and the meme stock craze.

Would be interesting to look at the data to see how friends referred are investing.

Do they continue to fund their account regularly?

How many move to one of the paid services?

How many people on average that have been referred go on to refer someone elseā€¦

Looking at Monzo i know they stopped the referral incentives and recently brought it back so there must be some merit to it.

Does freetrade do any other type of marketing? I believe inread someonewhere we got in trouble using influiencers.

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Usually even if they donā€™t sign up for ISA/SIPP/Plus the FX fee on US/EU stocks still means someone whoā€™d prefer to pay freetrade zero pounds and pence will still end up paying at least something.

As for people who sign up for the incentive and do nothing else, this is going to happen. Iā€™ve done it. Got accts with other providers that I havent funded after receiving a free share and after having bought with the money I added also.

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My brother signed me up and iā€™ve definetly been worth it.

Iā€™ve signed up around 15 people and a few of those are still regularly using it and have signed a few more.

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Yes but I doubt they will. A companies CAC (customer aquisition cost) is usually a closely guarded secret. Youā€™d have to get @Freetrade_Team drunk and the distract him with Archie Gemmill goals

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Itā€™ll be nice to see other types of incentives as opposed to constant referrals.

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I know Iā€™ve bagged a couple of free shares on Stake for doing questionnaires. Maybe freettrade could do the same

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Sounds like a Good Idea, Iā€™d do some questionnaires for shares!

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Anecdotally, on all of the 5 people Iā€™ve signed up, FT have made back the free stock with FX fees

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I think for a somewhat mature neobroker like FreeTrade things shall average out. Yes I do t deny some might come to FreeTrade gain the free stock then never buy again.

Ok sure.

But plenty will come and truly use the platform and this shall likely even things out in the long run, or perhaps even put freetrade in profit.

Of course none of us shall truly know in the official sense, but this is my best guess.

At the end of the day thereā€™s some degree of truth to the old adage, ā€˜build it, and they will comeā€™.

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One way they could get more long term users is by doing financial literacy webinarsā€¦ target universities & college and arrange talks.

I think thats one way youā€™ll get long term investment from users, by explaining the benefits of it.

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It may workā€¦ For sure!

But many see investing as not widely different to gambling.

They see me buying 10 shares of $PG as a similar-ish thing to having 2 hours gambling on the horses in William Hill.

It does irk me when I mention Iā€™m a stock market investor and someone else mentions various gambling endeavours or says ā€œoh I donā€™t do gamblingā€. Thereā€™s nothing I can do about it, but itā€™s irksome.

ā€¦of course they are wrong.

Some might be able to see past the misconception and others never will.