Understanding Discounts in Paddle: A Comprehensive Guide
Hi, I'm Alex, and welcome back to the Boathouse Paddle series, where we talk about everything concerning Paddle. Today's topic is all about discounts. What are they good for? How do you create them? This is your essential guide to understanding discounts in Paddle.
Introduction to Paddle Discounts
If you log into your Paddle account and navigate to the catalog section, you'll find the discounts section. This area is where the magic happens when it comes to creating and managing discounts for your products and subscriptions.
Types of Discounts
Paddle supports three main types of discounts:
- Percentage Discounts
- Fixed Amount Discounts
- Amount Per Unit Discounts
Percentage Discounts
The most obvious and most frequently used type is the percentage discount. Here, a percentage is deducted from the total sum on the invoice. This can apply to single-product purchases, subscriptions, or even subscriptions with multiple items (like add-ons or multiple users).
Percentage discounts are straightforward. They just take off a percentage of the total sum of that invoice.
Fixed Amount Discounts
Next, we have the fixed amount discount. This type is great for scenarios where you want to offer a specific dollar amount off a particular product. For example, if you want to have $50 off for a flash sale, you would use this option.
Amount Per Unit Discounts
The less frequently used amount per unit discount lets you create a price reduction for each unit purchased. This is especially useful in cases where customers can purchase multiple units under one subscription, like user licenses.
Creating a Discount
Let's walk through the steps of creating a discount in Paddle.
Step-by-Step Process
1. Login and Navigate
Log in to your Paddle account. Go to Catalog > Discounts. Click on Add Discount.
2. Type of Discount
Select the type of discount (Percentage, Fixed Amount, Amount Per Unit).
3. Internal Description
The description is internal and is not visible to customers. Use something descriptive like "Education Discount" if offering to teachers or "Customer XYZ" for a specific client.
4. Recurring Discount
The recurring discount switch determines whether the discount applies only to the first payment or to all subsequent payments as well.
Recurring Discounts: A Deeper Dive
If you don't activate the recurring discount, it defaults to being off. This means the discount will only apply to the first payment on a subscription. If you want to give 50% off every month, then you will need to activate the recurring discount option.
You can choose between:
- Until Further Notice: The discount applies indefinitely.
- Custom Number of Billing Periods: The discount applies for a limited number of billing cycles (e.g., next six months).
Using Discounts
Discounts in Paddle can be applied in various ways:
- Direct Application: Apply a discount directly to a customer's account so they don't need to enter anything at checkout.
- Discount Codes: Create discount codes that customers can enter during checkout.
Limiting Discount Redemptions
If you distribute a discount code to a public forum or website, you might want to limit the number of times it can be redeemed. This can be done by setting the redemption limit.
Tips for Effective Discount Codes
- Create Memorable Discount Codes
Instead of using a randomly generated string, use something more easily remembered, such as "SPRINGSALE". This makes it easier for customers to recall and use the discount code when they need it.
- Limit Discounts to Specific Products
You can restrict discounts to certain products or plans to better control your promotions.
- Deactivate Discounts Anytime
If you need to deactivate a discount, you can do so easily from your Paddle account. Simply go to the discount settings and archive it.
Conclusion
Using discounts effectively in Paddle can supercharge your sales strategy. Whether you're running a seasonal sale or offering special promotions, understanding the types of discounts available and how to implement them can make a big difference.
Thank you for watching and reading. Stay tuned for the next guide in the Boathouse paddle series!
