Loss Leader & Tripwire Offers
Sell something at a loss to acquire customers cheaply — then make your profit on the backend
Time to results
2-4 weeks
Budget
Varies ($0 for SaaS trials, $1,000-$10,000+ for physical product loss leaders)
Overall Score
7.5/10
Ratings
The Trade-off
Dramatically reduces the psychological barrier to first purchase and creates a buyer relationship that is far more valuable than a lead, but requires a strong backend offer and healthy unit economics on the upsell to avoid simply losing money.
The Strategy
A loss leader is a product or service sold at or below cost to attract customers who will then buy more profitable offerings. A tripwire is a specific type of loss leader — an irresistibly cheap offer (typically $1-$19) designed purely to convert a prospect into a paying customer, because the hardest conversion in all of business is getting someone to enter their credit card for the first time.
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