CGTrader Loyalty Discounts
CGTrader Loyalty Discounts is a buyer engagement system, which awards buyers with shopping points calculated as a percentage of the amount they spend on CGTrader. The system is designed to increase sales, motivate buyers to come back and incentivize non-paying users to purchase models. The points can be used to cover up to 30% of the total price of items that are participating in the program, so this essentially caps discount provided by a seller to 30%.
Why should I participate in the program if it reduces my income?
The system is designed to increase sales and incentivize buyers to come back and buy more. With previous campaigns we have seen that models that participate in the program sold 4 times better compared to those that do not participate. Increased sales will yield much higher returns per month if you incentivize loyal buyers by giving discounts.
Is the program compulsory?
No, every designer can opt-in and opt-out of the program at any time. However, data suggests that buyers are more likely to buy discounted models. Sales performance of the models that participated in Sales Discounts program is 400% better compared to those that do not participate.
How do I change my preferences for participation in discount programs?
You can opt-in and opt-out of discount programs by ticking the mark in your payment agreement page. This system is integrated with sale-off discounts, so if you are willing to participate in themed campaigns, but not in Buyer Loyalty Discounts - you can opt-in for campaigns when informed about the upcoming ones and vice versa.
How much discount buyers will get by using points and how much it will decrease my royalty rate?
The maximum discount that buyers will be able to get from each model by using Loyalty points is 30%. We estimate that for models priced more than $30, usual discount will be around 10% -15%. So it is worth to increase prices for cheaper models and participate in the program.
What is the difference between Sale Discounts and Buyer Loyalty Discounts?
Buyer engagement system is a continuous process allowing buyers to purchase models with points collected and rewards loyal returning customers. Sales, on the other hand, happen only on specific occasions like Black Friday, Christmas, or some campaigns planned by our marketing team. Both programs cap discounts - Sale Discounts to 50% and Buyer Loyalty Discounts to 30% at the maximum. These discounts are never applied together.
When is the Loyalty Discount applied in the royalty payment calculation?
The Loyalty Discount is calculated as the first step, before any other fee. This means that all other fees are will decrease proportionally as well.
Isn’t Loyalty Discount program increasing the undercutting problem?
Actually, we believe the opposite will happen. Buyers will spend Loyalty points which will cover up to 30% of the price. Therefore the higher is the price the lower discount you will have to give away.
For example, if the buyer has 5 points:
- for $15 model, 5 points will cover almost 30% of the price, the final price will be $10.5
- for $100 model, 5 points will cover only 5% of the price, the final price will be $95
Therefore, it will give pressure to undercutters, they will have to increase prices in order to reduce potential discount.
