Fixed fee campaigns for marketing & promotions require a client (marketing manager) to pay a pre-determined amount for a whole promotional campaign but use a campaign mechanic whereby the redemption rate and cost of the promotion are subject to variations.

As a marketing manager, redemption fixed fee campaigns allows you to offer much higher value gifts to clients based on the assumption that the redemption rate is usually far lower than straight gifting. If you offer a nice/expensive product and there is a big take up from end customers it can blow your marketing budget. This is why Fixed Fee Campaign Companies offer a method to calculate these costs and ensures marketing manager against over redemption and cost overruns.

Here is a great example of a Fixed Fee Campaign:

Fixed Fee Campaign

Fixed Fee Campaign

What is the role of marketing manager:

  • Fix a Budget
  • Agree on the prizes/gifts/rebate and marketing space
  • Define how much promotion will be done (Magazines, TV, Radio, On-Pack, Newspaper, POS, Internet …)
  • Decide on the starting and ending date for the promotion
  • Design your artwork
  • Launch the promotion

Role of fixed Fee Company:

  • Agree with the client on a fixed fee for this promotion and associated mechanics/terms.
  • Make sure that all the redemptions are fulfilled according to the terms offered to end customers.
  • Manufacture the product to be redeemed and hold sufficient stocks, if applicable.
  • Logistics and fulfilment of the orders.
  • Take full responsibility for all the associated costs.
  • Maintain adequate insurance against massive cost overruns.

What kind of products/campaigns could use a fixed fee promotion?

  • Petrol station – collect coupon every visit and customers select gifts from the catalogue.
  • Collect XX tokens on cereal packets and get a set of free kitchen bowls…
  • Select a lucky customer.  Give them get a chance to score a goal/get a hole in 1 at golf etc..  If they score they win US$1 million.
  • Lucky draw for a chance to win small to very big prizes.

Fixed Fee gives marketing managers scope to use a new level of creativity flow without having to worry about the budget.


Fixed Fee Campaign

Fixed Fee Campaign


Hedge your bets with Fixed Fee Campaigns

Quite a few companies will help you reward customers if the result of a football match goes the right way for example. Let’s assume you want to do a promotion to support your country.  Maybe you can offer to reward customers or refund part of their purchase if your country wins the world cup in 2014. This could be very expensive, but what if you are to hedge your bet with a local or international bookmaker. Then you can use internationally recognized odds and manage the cost of your campaign.

What other methods have companies used to mitigate risk? Would love to have case studies for our Promo Gift Blog.


How can ODM Help?

ODM can help you design and manufacture custom products suited for your next fixed fee campaign. Enquire @ ODM for more ways and explanation on how you can vastly improve your business. Our product designers will be able to provide you with multiple unique and interesting ideas for you to wow your audience and increase brand recognition. The specialists here are capable of assisting you throughout every process to ensure a pleasant experience. Contact ODM now!


Blogs you might be interested in:

Everyone loves gifts – something about free things gets people excited. This is why this movie lucky draws are such a hit! Why are giving away goodies are a smart choice and will aid your promotional campaign immensely? Check out more:


Lucky draw campaigns are great when trying to entice first time purchases, repurchases and drive impulse purchases. It is also important to present attractive prizes to successfully attract participants. Take a look at Mitsubishi’s promotional campaign and find out why we love it:


Customers of 7-11 could participate in the competitive promotion with Coca Cola and Polaroid. With a huge population who loves to take photos and document almost everything, this is the perfect promotion to attract a crowd. Check this out: