How do fixed fee promotions help you sleep easy?

Who remembers the Hoover Fiasco a few years back? In brief, Hoover ran a promotion offering customers the chance to claim two tickets to Europe and the US with any product worth over £100. Great idea… the problem was that although nobody particularly wanted the Hoover product , lots of people did want two flights for £100. Unfortunately Hoover didn’t consider what would happen if this great offer was over redeemed. And boy was it over redeemed! The promotion cost £20m in flights and 3 executives their jobs.


Fixe fee promotions offer a 100% guarantee that the promotion will not exceed its budget. This also includes the cost of fulfilling the promotion.


A fixed fee campaign can work for a variety of companies wishing to provoke a consumer response. But like the Hoover scenario, you may not know what that response will be.


Fixed fee promotions work in two ways:


Scenario 1:

A client wants to run a high impact promotion offering high value prizes such as cars and holidays. They want people to win, to benefit publicity. The concern is that if more people win than expected, the client will be left with a sour taste in their mouth.


A fixed fee promotion protects the company should multiple high value prizes be won through random plays – helping the client sleep at night. No matter how many prizes are won (of any value), there will be a fixed price for the promotion and the client won’t pay a penny more.


Scenario 2:

The client wants to run a promotion where there is a high chance of low value prizes being won, which will benefit publicity as winners share their success on social media.


A fix fee promotion is ideal for an ‘everyone wins’ strategy. The number of people purchasing and playing is unknown so the total prize value is unknown. Whether it is 50p off the next purchase of a product or a free cuddly toy for every reader, the fixed fee ensures that highly successful promotions resulting in more discounts or prizes being given away, do not financially punish the client.




Fixed fee promotions allow companies to offer headline prizes and generate great publicity whilst promising financial security. Certainly worth considering for your next promotion.

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