How a young entrepreneur built a million dollar promotional codes business

It is increasingly common for new businesses, especially applications, to encourage users to sign up for their services through the use of promotional codes – brands such as Amazon.com, Dell, Target, Gap, Uber, Lyft and Groupon regularly adopt the strategy. In addition, often these businesses recruit ambassadors through the provision of credits. Los Angeles entrepreneur Aaron Leupp was able to build a multimillion-dollar operation based on this concept.

While at the University of Southern California in Los Angeles, Leupp worked as a promoter at the Belasco nightclub to help pay for his studies. His big break, however, came when he had the opportunity to organize an event at the venue, is responsible for facilitating the transportation of customers.

The company connects customers such as Uber, Lyft, Postmates, Airbnb, Shipt and Drizly to digital influencers, who promote the brands through the disclosure of free promotional codes

At the time, Uber was a relatively new company and offered a promotion in which new users won a free ride regardless of distance or duration. And whoever said the service would be entitled to credits for future races. Leupp then placed the promotion links in the party flyers and promotional materials. With that, he was able to make the event a success and Uber offered him the opportunity to continue promoting the application in exchange for money – instead of the traditional credits to use the service.

As the model had worked very well, Leupp expanded it and established a partnership with Postmates, a delivery company that at the time was just a startup. After generating tens of thousands of dollars in credit in a short time, he sent this information via email to Postmates CEO Bastian Lehmann. Soon, the company also became a Leupp customer. Some similar deals later, the creative entrepreneur launched his own company in 2013, the PromoAffiliates.

The company connects customers such as Uber, Lyft, Postmates, Airbnb, Shipt and Drizly to digital influencers, who promote brands through the release of free promotional codes. The commission is divided and influencers receive a percentage of 80%.

Briefly, PromoAffiliates coined a new term for their business: “Pay Per New User” campaigns. “The operation of ‘pay by user’ or ‘pay by indication’ is very simple. Customers send us a series of unique promotional codes to use in our campaigns. They are passed on to our team of associates and influencers. Based on the result, the operation is paid, which completely eliminates any risk to the customer, “Leupp explains.

In some cases, the brands give PromoAffiliates temporary promotions bonuses. One example was when Lyft gave, for a limited time, $ 1,000 to the company for each new driver enrolled. The professionals received the same amount of bonuses.

Because PromoAffiliates is based in Los Angeles, its creator has been able to interact directly with celebrities who have millions of followers on social networks to make some of the deals happen. As a result, the company was able to bring millions of users to its customers.

By 2015, the company was generating hundreds of thousands of dollars in cash flow. At present, this figure has risen to the millions. This year, the company’s influential partners have generated billions of campaign views for PromoAffiliates customers.

After reaching several milestones, the company received investment offers. However, according to Leupp, since the flow was positive, he did not accept any of them. According to the entrepreneur, the goal of PromoAffiliates is to become a Mad Men of the present day. The company wants to help startup startups reach their full potential and continue to offer revenue to influencers, YouTube personalities and bloggers.

Leupp states that several personal experiences have prepared him to launch his own business. The entrepreneur produced his first feature film in high school, played in several bands and helped his father to launch and promote a store of suits and tuxedos. “I think leading from other people’s example has been the best preparation to play this business because as I have also been promoting, I can relate and work with our hundreds of promoters and influencers. And as I also know how important marketing is to startups and businesses, I can relate to customers, “he says. “I see all this just as the beginning of our journey. We will continue to work even smarter and harder to help others in all we can. “

Leave a Reply

Your email address will not be published.