Best practices for discount codes
A good discount code is memorable, easy to type, and hard to guess. Here is what works.
Naming conventions
- Branded prefixes: PLUTIO-XXXX, ACME-XXXX. Reinforces your brand when customers share codes.
- Campaign-specific: SUMMER2026, BLACKFRI25. Makes tracking easier and adds urgency.
- Partner codes: PODCAST10, JSMITH15. Tracks referral sources and makes affiliates feel valued.
- Action-based: WELCOME10, COMEBACK20, REFER25. Communicates the offer in the code itself.
Technical considerations
- Length: 6-10 characters balances memorability with security. Shorter codes are easier to share but easier to guess.
- Character set: Avoid ambiguous characters (0/O, 1/I/l). Uppercase only is easiest to read and type.
- Uniqueness: For one-time codes, ensure each is truly unique. For campaign codes, one code can be reused.
Common patterns
| Type | Example | Use case |
|---|---|---|
| Campaign code | SUMMER25 | Seasonal promotion, shared publicly |
| Referral code | REFER-8XK4P2 | Unique per referrer, tracks source |
| One-time code | 7H2M9X4W1K | Single use, high security |
| Partner code | PODCAST15 | Affiliate tracking |
Setting up a referral program
Referral programs turn happy customers into your sales team. Here is how to structure one that works.
The incentive structure
Standard approaches:
- One-sided: Referrer gets a reward when their referral converts. Simple but limited reach.
- Two-sided: Both referrer and referee get rewards. More viral, higher conversion. Example: "Give $50, get $50."
- Tiered: Rewards increase with more referrals. Encourages power users to keep referring.
Reward types
- Discounts: 10-25% off next purchase. Low cost to you, high perceived value.
- Credits: $X toward future work. Ensures repeat business.
- Cash: Direct payment to referrer. Most attractive but highest cost.
- Free upgrades: Extra features, priority support. Zero marginal cost.
Making it work
- Make sharing effortless: One-click copy of unique link/code. Pre-written share text.
- Communicate clearly: "Refer a friend who books a project. You both get $100 credit."
- Track everything: Use unique codes per referrer to attribute conversions accurately.
- Pay promptly: Delayed rewards kill enthusiasm. Pay within days of qualifying action.
Promotion strategies that work
Discount codes are a tool, not a strategy. Here is how to use them effectively.
Limited-time offers
Scarcity drives action. "Valid until Friday" outperforms "Use anytime." Set expiration dates and communicate urgency.
First-time customer discounts
Lower the barrier for new customers. 10-20% off the first project is common. Make it conditional: "For new clients booking before [date]."
Loyalty rewards
Surprise long-term customers with exclusive codes. "Thanks for being a client for 2 years. Here is 15% off your next project." Strengthens relationships and prevents churn.
Seasonal campaigns
Align with natural buying cycles. Year-end budget spend (December), new year planning (January), summer slowdowns (July-August). Create urgency around these windows.
Recovery offers
When a proposal is declined or a client goes quiet, a targeted discount can restart the conversation. "I know budget was a concern. I can offer 15% off if we start by [date]."
What to avoid
- Always-on discounts: Train customers to never pay full price
- Heavy discounts: 30%+ signals desperation or inflated prices
- Unclear terms: Friction causes abandonment. Be explicit about what the code does
