A few weeks ago, we wrote about TodayTix cutting their referral credit in half, from $20 to $10 when a new user used a promo code to buy tickets through the app.
With the move to $10 referrals after Labor Day, we thought that the company probably had hit enough users (650,000), had a strong enough market share and momentum that they could slow down their aggressive growth strategy.
Thinking about it, it was an expensive promotion; it wasn’t just $20 that went to the new user, but those referring the new users also received $20, so in total it was $40 in lost profit.
Forty dollars per new user was clearly too expensive at this stage of the game for TodayTix — the double-dipped discounts were eating at their revenue and future profit. The company has received three rounds of funding and isn’t yet profitable.
They may have done away with $20 referral codes, but $20 isn’t too expensive for them to acquire new users. The other day I received a mailer from TodayTix promoting $20 off for new users. Feel free to use it:
The MAIL20 voucher code is only good on the first purchase and expires December 31, 2015. Of you can also use my BIHLO code for $$$ off (which doesn’t expire!):