:freetrade: Referral rewards

[rod]

This is probably belongs in a different thread but while I am on rewards…

Once FT is public it would be good to have additional rewards/mechanisms that try reduce CAC. Referrer and referree both get a free (fraction of a) share in X when the referree signs up as a new user and trades. Or the referral link thing that FT has successfully done pre-launch but something like free alpha in any month that a user refers a new user who goes on to trade. Things like that. I guess Dropbox is the case study for customer acq by referral marketing. Anyway I’m sure Victor and team are already all over stuff like this.

[Vlad (Vladislav Kozub)]

@rod

Or the referral link thing that FT has successfully done pre-launch but something like free alpha in any month that a user refers a new user who goes on to trade.

This has been raised before. but nice to have more people thinking the same way.

Share X will cost Freetrade real money so not the best option. However, offering free Alpha will be marginally cheaper and yet can provide better value. For example, Yearly Alpha (£100) will most certainly cost Freetrade less than £50 of share X. Hence as a customer, you would be better off with Alpha and it will be significantly cheaper for Freetrade to provide.

[rod]

Ah I thought it might have been discussed somewhere but I couldn’t find it. Thanks.

Yes I agree. If all other things are equal, rewards with zero marginal cost are better value for FT, for sure.

Though I wonder if all other things aren’t equal. Like: to some potential users, the idea of getting a free [bit of a] share may be disproportionately compelling in comparison to having a discounted alpha account which they may find harder to evaluate before they’re an active user. (Not to pick on these two things particularly, they were just examples.)

Getting a fraction of a share only occurred to me as a possible reward because FT is already doing the heavy lifting to make fractional shares possible. But I also remembered how it felt the first time I heard that Robinhood gave people “a free share”.

[kenny (Kenny Grant)]

@rod

Referrer and referree both get a free (fraction of a) share in X when the referree signs up as a new user and trades. Or the referral link thing that FT has successfully done pre-launch but something like free alpha in any month that a user refers a new user who goes on to trade.

Like this idea, but I think they should take it a step further and offer shares of freetrade as a reward - start at 1 per referral evenly split. Pretty much free for freetrade if they set aside a small block of shares for it early on (and a tiny dilution of existing shareholders), and encourages customers to feel invested in their success. Not worth anything in concrete terms till they IPO of course, but could be worth real money at that point.

Incentives like free alpha are not very attractive for those who already have it, so I’d prefer the shares idea, or a small referral fee in cash.

[saf]

@kenny

Incentives like free alpha are not very attractive for those who already have it, so I’d prefer the shares idea, or a small referral fee in cash.

The key attraction is free or heavily discounted trading. That alone should get parties interested.

[JohnDoe]

Is their anything in the roadmap in terms of a link referral program ?

[anon2636484]

There could be when the roadmap’s made public but as far as I know, there isn’t yet. I guess that for now good karma (& of course, getting bumped up the waiting list) is our reward

Some other users have bounced ideas for incentives around so I’ve created this topic to make the discussion easier to find & moved your post over, I hope that’s ok!

I’d be curious to hear your thoughts about the suggestions for rewards so far..

Just to keep everything in one place, Vlad mentioned this too -

@Vlad

for every referral freetrade pays a small fee if the customer signs up for a paid option within x months

Or alternatively, give a greater value to the customers (give them more than they could have paid for with the “ small fee ” and yet not incur any monetary expenses yourself.

For example : You invite a friend. He/She pays for Alpha for a month. You get Free Alpha for a month as well. And you can do such thing with unlimited friends but can only get 1 month per friend. This way you could hypothetically keep perpetual Alpha for free as long as you refer 12 paying friends a year and that is £100-120 revenue a month at a physical cost of next to £0 but a £10 giveaway value a month to that very friendly individual.

If it was to be a one-off occasion for an individual, Freetrade’s incremental revenue is still £10 per person with £0 cash expense (but you provide £20 in value, ultimately at a 50% discount).

Of course, they may be a risk of “let’s use their generosity and revert back to Basic” kind of people, but people are equally likely to keep their Alpha if they enjoy it. Particularly given future-coming enhancements of it.

[JohnDoe]

I searched for the topic but couldn’t find anything related (hence the reason I posted).

This would basically come down to how much each customer is worth (lifetime cycle) and acquisition cost.

Something like a one off payment would be good. Only usable inside the app to buy shares of companies or to upgrade to a premium membership.

I’m from the cryptospace and the leading exchange Coinbase basically gave away 10GBP/10EUR/10USD per referral after they made a specific amount of purchases (100EUR/100GBP/100USD) if I recall. A similar referral scheme would do wonders IMHO.

Maybe with initial 1 or 2 yr cutoff so customer base scales but doesn’t kill our profit further down the line.

[tommy]

This was nearly a year ago, so things might have changed, but check out a similar conversation we had in the Monzo forum. For the record - I never managed to catch @adam

Freetrade: Free Share Trading