Loss Leader

A loss leader (also leader) is a pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. With this sales promotion—marketing strategy, a "leader" is used as a related term and can mean any popular article, i.e., one sold at a normal price.
Posts about Loss Leader
  • WeddingWire CEO: Building Technology For The Ephemeral Consumer

    … for them. We all know that it matters because when you’re selling to small businesses, building relationships is so much about trust. And being able to have multiple products that help them be better businesses expands that relationship, allowing us to sell more advertising. We’ve seen Groupon and others treat software as a loss leader and give…

    Steven Jacobs/ Street Fight- 9 readers -
  • Affiliate Marketing 101 For Affiliates and Product Owners

    … side – you have to do whatever it takes to get started. It might mean you have to pre-pay 1-10k (depending on quality) to get them to do a “test”. You might have to do a loss leader to get some traction. By loss leader I mean you pay out more than you make. For instance with our product that sold for $97/$79 we paid out as much as $130. We lost about…

    Jeremy Schoemaker/ ShoeMoneyin Affiliate- 5 readers -
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