Just as I showcased Perry Marshall's penny offer in my previous post, I am showcasing HostGator's penny offer to show you the effectiveness of the proposition...View More & the contrast between the two. View Perry's first if you haven't: http://swiped.co/file/retargeting-perry-marshall/ Ironically, Perry & Hostgator started running these campaigns only a few months apart. According to my findings, Perry actually ran his offer a few months before HostGator, who started around October of 2013.
The bottom line is, both penny offers have been running since then for two very reputable brands which means they must be working pretty well. The difference between HostGator & Perry's penny offer is that if you read the fine print, HostGator is offering you a penny for your first month, kind of like a trial offer. Keep in mind, it's rare that someone buys hosting for one month though so for HostGator, one free month for 12-24 paid ones is a no-brainer.
On the other hand, Perry's offer is to pay a penny for an entire item (his book) plus shipping, but then sell you his back-end products to make a return. Essentially, you have two companies that are using a penny offer to get you into their funnel & then make a profit by getting you to make a larger purchase. Hostgator serves a much larger audience so their ad reach is significant (millions of impressions), where as Perry's is smaller & more targeted.
Penny Offer Display Ads from HostGator Swiped in July 2014
Notice how HostGator gets the penny offer across in three ways. Visually (the image of the penny), verbally (the wordage of "1 Penny") & numerically ("$0.01"). You want to ensure the core of your offer is very clear.
The job of the penny is to grab attention. Thus, why the shiny penny is used, the penny text is in yellow & captalized & the first zero is made big.
Make your goal to create long-term customers (customers for life). When you have a plan to capture customers for a long period of time & have them buy more from you overall, a low front-end offer like the penny offer, is a no-brainer.
Mike Schaueris the founder of Swiped.co and the main analyst in the swipes section. After intently studying & building conversion-focused websites for 6+ years, he started Swiped to help others master marketing & copywriting through the analysis of great examples!
Visit the archives of this swipe's source URL or view past screenshots of hostgator.com below.