Every eCom brand needs a way to get email signups and that first sale as quickly as possible. Once a customer buys, they’re easier to sell to repeatedly.
But what’s the default move for nabbing that first sale? Slap a 10% off discount on a pop-up and call it a day.
Discounts can work — but they’re not always the best option. They eat into margins, attract bargain hunters, and may not be the strongest incentive for your ideal customers.
If you want higher-quality leads who actually stick around and buy, other lead magnet types can bring in engaged, high-value customers…
Without cutting into your profits.
Let’s break down when discounts make sense and the best alternatives to test.
The Pros and Cons of Discount Lead Magnets for eCommerce
Like any strategy, there are trade-offs.
Discounts can drive sales, but they also come with risks — like attracting the wrong customers or conditioning buyers to expect deals.
Before defaulting to a discount as your lead magnet, let’s break down the real pros and cons.
First, the two obvious benefits to you and your customers:
- Simple and effective: No denying it. Discounts are low-friction. People love instant savings. Customers will sign up and buy if they’re already interested somewhat in the product.
- Easy to implement: Discounts take just a few minutes to set up, pop-up and all. Much easier than creating a free resource.
So yes, discounts work.
But that doesn’t mean they’re the right tool for every brand. The same qualities that make them effective can also backfire if you’re not careful.
Here’s how discounts could hurt your business more than they help:
- Shrinks your margin: A discount reduces your margin on the purchase. If every first purchase is a discount, first-time buyers are less profitable.
- Risk of “bargain hunters”: Discounts may get people who just want the cheapest thing and aren’t interested in buying again.
- Cheapen the brand: They make your brand and products look “lower-end” than needed when overused. This is more of a threat if you frequently run promos with discount offers.
- May not work on their own: Discounts aren’t always enough if other factors create friction between the customer and the purchase.
- Not always as customer-helpful: Some niches or price levels may entail a bit more of an educational approach. A discount doesn’t give customers much to go on.
So now that you know the pros and cons, let’s take a look at when discounts make sense…
When Discounts Make Sense
Discounts work best when:
- Your backend strategy is dialed in: You’ve mapped your customer journey. You’ve set up retention-based email/SMS flows (post-purchase, replenishment, winback, etc.). You mail your list regularly. You have strong customer service. Dialing in your backend strategy with these (and other) moves makes up for the “lost” profits on the front-end.
- You have strong repeat purchase behavior: Niches like subscription products, CPG, and consumables (coffee, supplements, etc.) can benefit since they lend themselves to repeat purchases.
- Your margins allow for it: Healthy profit margins can bear discount lead magnets more easily, especially if you lean heavy on acquisition.
Discounts aren’t ideal when:
- Your products are luxury/premium/high-perceived value: Discounting up front cheapens the product and brand. This may counterintuitively reduce sales by reducing the customer’s perception of the product.
- Your audience is deal-hunting elsewhere: If you’re competing against more widely available types of products, your audience may be price-shopping. A discount won’t help if they can find your product cheaper/faster, like with their Amazon Prime account.
- Your margins are thin: If you can’t afford to lose front-end profits, a discount may not be wise.
Think of discounts as part of your price to turn a lead into a buyer.
Instead of spending more on ads to acquire a new customer, you’re using a small margin sacrifice to bring them in.
The key is making up that loss on the backend with repeat purchases, upsells, and retention marketing.
Granted, that means if you find killer ad campaign hooks, you might not even need the discount. But you still need SOMETHING to give customers in exchange for their email signup…
7 High-Value Alternatives to Discount Lead Magnets
Whether you want to boost your front-end margins, looking for higher-quality leads, or trying to improve your brand’s perception…
There are PLENTY of alternatives to discount lead magnets that, when executed properly, get tons of signups and sales:
1. Free Guides and eBooks
Free guides and eBooks solve a specific, pressing problem the customer has at the stage of their journey at which they find you…
While building your authority and expertise in the customer’s eyes.
People think guides and eBooks are just for consultants, strategists, gurus, and personal brands.
Not so. DTC physical eCom brands in a variety of niches can leverage this, especially if they sell higher-priced items. The higher the price, the more skepticism you must overcome.
The nice thing about lead magnets is you can craft the information within them to be true/helpful while framing YOUR product as either:
- The solution itself
- A way to get better/faster results
Some examples:
- Running shoe brand: A free guide on X things to look at when comparing running shoes. Soft sell how your shoes meet the criteria without making it all about your shoes.
- A skincare brand: A guide to building a skincare routine. Offers opportunities to soft sell your products.
- Pet care: A guide to choosing the right food for your pet. You can highlight (without hard pushing the sale) how your product meets the criteria.
- Leather goods: A guide to knowing the different kinds of leather and maybe some industry terminology.
If you have a blog, there’s a good chance you have lead magnet material hiding in it.
2. Quizzes
Quizz lead magnets ask customers about themselves, then ask for their name and email to see their results.
You can either send the results via email or display them on the “thank-you” page after they sign up. That may be the product recs themselves or just the category.
Quizzes do a lot:
- Show customers the best products for their problems: This removes their “burden of thinking,” reducing analysis paralysis.
- Demonstrate authority and expertise: Customers see that you know your stuff. They trust you more and buy the recommendation.
- Gather zero-party data: Use this to learn more about your customers for better email messaging, segmentation, and offers. You can also study trends in which problems resonate most/which customers buy the most… to improve your ad targeting.
Quizzes can:
- Entail multiple questions to gather more data and help tailor product recommendations closely, OR;
- Be 1-2 questions to reduce friction
- Be as little
The first one may work for higher-end products or to cultivate a more luxury experience. The second is better if you need to implement quickly and don’t have a big product range.
Here’s an example of a super simple “quiz” from WatchGecko that combines with a discount:
Look at the “shopping for” section. All you have to do is check one or more boxes to indicate the types of products you’re looking for and WatchGecko presents those to you.
But as mentioned, quizzes can be more complex and require multiple pages.
For instance, I worked with a wellness/pharma brand with a sleep offer who’s “lead magnet” was their intake process and then a few questions about their particular sleep issues.
There were multiple questions they were required to collect anyway, but they could then send emails to prospective patients who didn’t finish signing up.
Here are a few other examples:
- Apparel: Suggest products based on their personality.
- Coffee: Give them questions to determine their “coffee personality” or something similar.
- Parenting: Ask the customer a bit about their child (age, needs, etc.) and recommend the best product(s).
- Consumer electronics: Ask them what device they’re looking for, then a few questions about what they plan to use it for… and then show them your top option.
3. Free Samples
- Works for brands with low-COST, high-margin products (beauty, snacks, supplements).
- Let customers try before they commit—leads to higher conversion rates.
Free samples involves, well, giving the customer a free small item of yours.
There are two ways to approach this:
- Free sample alone: Customers sign up and receive a sample before making a purchase.
- Free sample with first order: Instead of discounting, you include a sample of another product to encourage future purchases.
Either way, us humans just LOVE free stuff. A free item may be more compelling than a discount because it’s something tangible rather than just an abstract “discount.”
BONUS:
A free sample can increase the chance of getting the second purchase by introducing the customer to the “next logical product” or one they haven’t considered.
See? You still “give up margin” but the chance of the next purchase is higher. The customer will KNOW whether they like that product or not.
Some examples:
- Protein powder: Send a single-serving pack of another popular flavor OR another product (like a preworkout) with their first order.
- Wine: Give them a small free sample of another popular option.
- Coffee: Send a free sample pack of your top blends… or send a free sample of another flavor with their first order.
- Homeschool supplies: Send a free sample of some consumable item (like a science material) with their first order.
- Fragrances: Send a small sample vial of your signature scent (or another, you may want to make the signature scent your flagship).
One warning:
I’ve heard that the “free sample alone” can be logistically complex for some brands. Handling packaging, fulfillment, and shipping for small sample orders isn’t always simple.
It may be worth testing once you’re more established and have the operations in place to handle it smoothly.
Doing the “get a free sample WITH your first order” may be easier than solely shipping a free sample, too.
4. Mystery Bonus
Instead of a straight-up discount, offer a mystery gift or surprise perk with first purchase. The curiosity factor makes the strategy more enticing. Customers want to see what that mystery gift IS.
The bonus can be a small freebie, exclusive content, or even a discount — but the mystery element makes people more invested in checking your emails (especially your welcome sequence) to see what they’ll get.
Some examples of copy you could use:
- “Where should we send your mystery discount?”
- “Tell us where to send your mystery discount”
- “Unlock your mystery gift”
- “Get a mystery gift with your first order”
One brand I worked with did a “mystery discount” and it did decently well.
I then A/B tested some more urgent, action-oriented copy alongside playing up the mystery and submits jumped a LOT.
5. Early Access/Other Perks
- Instead of “10% off,” offer exclusive first access to new product drops or something else.
- Builds anticipation and creates a FOMO effect.
- Works well with brands for which education works better
- Can make emails a place where people get exclusive tips and whatnot to achieve their niche-relevant goals
Instead of a discount, offer subscribers exclusive early/first access to product drops, limited-edition releases, or other members-only perks.
This builds anticipation, create a FOMO effects, and makes it feel more “elite” to be a subscriber.
Ideally, you give subscribers a few subscribers-only things that non-subs can never get. But you don’t HAVE to. The subscriber can just be the first to know.
Brands for whom exclusivity, insider knowledge, or premium positioning matter will benefit most.
Some examples:
- Fashion & Streetwear: “Get early access to limited drops before they sell out.” (Think sneaker brands, hype-driven fashion)
- Coffee & Specialty Foods: “Join our VIP list to try limited-edition roasts before they’re gone.” (Ideal for high-end, artisanal food & beverage brands)
- Hobby & Niche Communities: “Unlock exclusive content, early access to new products, and VIP perks.” (Works for collectibles, gaming accessories, outdoor gear)
- Fitness & Training: “Access exclusive workout plans, expert tips, and first dibs on new gear.” (For brands with a strong educational element)
6. Gamification
- Spin-to-win wheels, tiered rewards
- Makes email collection interactive and engaging.
- Might still give a discount, but it adds a bit of intrigue and fun — which discount or free gift am I gonna get?
Gamification lead magnets, like spin-to-win wheels and tiered rewards, add a bit of fun and intrigue to the process:
- Spin-to-win: Elements of uncertainty and chance. What’s the customer going to win? It’s more exciting.
- Tiered rewards: Upping what they get depending on the size of their first order. Encourages larger first purchases. Also makes customers feel like they “earned” their reward which adds some satisfaction and excitement to the process.
Examples of spin-to-win:
- Fashion & Apparel: “Spin to win. Unlock a mystery reward like 10% off, free shipping, or an exclusive accessory!”
- Coffee: “Spin the coffee wheel! Win a free sample, a discount, or a secret brew surprise.”
- Tech & Gadgets: “Unlock your mystery deal — discounts, bonus accessories, or VIP perks await!”
- Outdoor & Adventure Gear: “Test your luck. Win a gear discount, an exclusive map, or a free survival tool!”
Examples of tiered bonuses:
- Fitness & Supplements
- Low-tier: 5% off
- Mid-tier: Free shaker bottle
- High-tier: 20% off a full bundle
- Pet Products
- Spend $50+: Free toy
- Spend $100+: Free bag of treats
- Spend $150+: Free surprise box with multiple goodies
- Home & Kitchen
- Spend $75+: Free recipe book
- Spend $150+: Free specialty spice set
- Spend $250+: Free premium cookware item
7. Giveaways
Giveaways offer customers a shot at winning something valuable for free in exchange for their email.
BONUS: Encourage social media follow/shares and other desired tasks (such as signing up for SMS) in exchange for extra entries.
Speaking of social sharing… you can share the winner on social media every month to get even more out of your giveaway.
This shows the giveaway is REAL and gets you some more interest from others on socials. It also makes the winner feel good. They get a little bit of fame and spread the word about you. They might be more likely to buy, too.
Some giveaway examples:
- Coffee: Offer a shot at a 3-month subscription for free
- Fitness/Supplements: Give away a full supplement stack or a multi-month supply of a top seller.
- Outdoor/Adventure: Give away a valuable, relevant bundle, like a camping set.
- Golf: Offer a complete golf gear bundle (shoes, gloves, etc.) or a new club/clubs.
- Pet Care: Give away a bundle of pet products worth a significant amount (like $200).
A few things to keep in mind…
First, this is all in the math. Is giving away, say, $200 a month in prizes (plus any shipping and other costs) worth recovering, say, 10% on every first purchase? You’ll have to look at your financials and do some quick calculations (or use AI tools to help you do this).
Second, keep in mind that giveaways CAN attract freebie seekers.
That said, you can offset this in a few ways:
- Make the giveaway RELEVANT (so new customers still want to buy even if they don’t win)
- Nail the front-end (Your Welcome Sequence, mainly)
- Cultivate a dedicated repeat customer base (so you’re still making consistent revenue)
- Dial in WHO your customer is (You can focus your lead flow on people who are closer to your higher-LTV customers and thus more likely to stick around)
The Best Approach: Mix & Match for Your Brand
There’s no “one-size-fits-all” lead magnet. Some brands can layer them, too, as you saw with WatchGecko (discount + quiz + subscriber-only perks).
This is why you should test different approaches. These days, ChatGPT makes it easier to put together lead magnets. ideation, writing, editing, refining, etc. So you won’t be “out” a lot of time by testing a new lead magnet.
This is especially true if your back-end marketing is already dialed in. You don’t have to worry quite as much about making front-end sales if your flows and other processes are selling to repeat customers.
Such a situation gives you more room to test and iterate on new lead magnets.
Conclusion: Should You Use Discounts to Get Email Signups?
Discounts aren’t bad, but they’re not your only option. If they fit your margins and business model, they can be a solid lead magnet…
But they also attract deal-seekers and reduce first-purchase profitability.
Testing alternatives — like guides, quizzes, samples, or early access — can help you attract higher-quality leads who engage more and buy long-term.
That said, the stronger your retention game, the more flexibility you have to build and deploy new lead magnets. So don’t forget to dial that in as well.
Then test, optimize, and find what brings in the best customers… not just the most.
What To Do Next
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Hello! I hope you’re having a great day. Good luck