Increasing your profits by giving away discounts sounds like one of the most backwards way to make money online, but it's possible. There are a few ways to increase your profits by giving away discounts and I'm going to go over them shortly. This method works best when you're selling something online whether it be a physical product or digital.
Method #1: Discounted Items
This is one of the better known ways of increasing your sales. You simply discount your items by as much as you can, but still being profitable in the end. I wouldn't discount something a great deal because you always want to make money on each sale. If you get something for $5 and sell it for $25 then give people a 50% discount in order to increase your sales. You'll sell much more of that item because people will see that it's discounted a great deal and they might miss out. I wouldn't discount your items 10% or 15% because that's not a big enough price drop to get people interested. Anything over 25% is a good start but if you can hit that 1/2 off mark then you're golden
Method #2: BOGO
The buy one get one trick has been around for along time. If you do are doing this at a 1:1 ratio then that means you're items are practically 50% off. You'll need to have your pricing just right in order to profit with every sale and not lose money because you're math is off slightly. If you don't like the buy one get one free system you can always just discount the second item by 50% so that you're profiting a little more. What you'll do is say "Buy one and get the second at a 50% discount". You don't have to do a 1:1 ratio, you can actually do a Buy 3 Get 1 Free which is basically a BOGO, but not as many people will jump no this because they may not need 4 of something.
Method #3: Registration Discounts
This method really only works if you don't require registration in order to make a purchase. You'll make sales from people who aren't registered but you're offering them a chance at a discounted price just for signing up. A ton of people will sign up to get the additional 10% to 50% off (or whatever you decide it should be) and your sales will increase. This method also works well when it comes to increasing your newsletter sign ups because you can have them automatically added to your mailchimp account upon registration and they will usually opt in when they get the activation email
Method #4: Social Sharing Discounts
This method is personally one of my favorites because it works so well. I like to set up a social sharing discount for a lot of my eCommerce websites because they are usually a general product that can target a lot of different people no matter their race, religion, sex, or anything else lol. What I'll do is have a pop up when they're viewing their cart and they click "Continue to Checkout" or just "Checkout". It will have a pop up or drop down letting them know that if they click the share button for facebook they will let everyone know they're buying an item from us at a XX% discount just for sharing the fact that they ordered from us. What I usually have the pop up or drop down say is "Want to get an additional 25% off? Let your friends know you're purchasing from us and the discount will automatically be applied to your cart! Just CLICK HERE to share" and once they click the image it will either share to their facebook page or ask them to log in This method works really well because they're getting a percentage off of their sale and they are advertising to all of their friends on facebook Now some of the people may just delete the post after they make the purchase, but a lot of them will not.
The only downside of this method is that it takes some special coding in order to get the share to be recognized and then have the discount applied. You can find a good programmer right here on SEOclerks if you can't do it yourself
Giving discounts can increase your sales in the few different ways that I've listed above. Play around with them and see which works best, I prefer #4 but that may not work for you if you don't have a good programmer. If you use these methods you're sure to increase your sales