Exposing The Lead Gen Mistake Hurting Millions of Businesses

Lead gen in eCommerce has turned into a lazy loop. It starts with the same tired play, a pop-up offering 10–20% off if you hand over your email. If you’re like most eCom brands, you’ve either tested this tactic or you’re still using it.

But here’s the thing, this kind of “bribe-based” lead gen doesn’t build long-term trust. It builds a list of deal-hunters who only convert when there’s a coupon. It trains your audience to wait for discounts, devalues your products, and slowly chips away at the brand you’re trying to grow.

We’re breaking down why relying on discounts is hurting businesses rather than boosting sales. And what smarter, more strategic lead gen actually looks like in 2025.

Why Discount Popups Are So Popular (And So Overused)

Let’s address the elephant in the room… discount popups are popular because they do work. Well, at least on the surface. We’ll get deeper into this later.

Discount popups have become the go-to for lead gen and quick sales for brands because they offer instant gratification. Want an email address? Dangle a 10% off code. Done.

So why do so many brands still default to this?

Everyone Else Is Doing It

You aren’t alone. Almost everyone seems to be running discount popups.

Why? Because that’s what they’ve seen on every other store. It’s baked into templates, pre-loaded into email tools, and recommended in every “how to grow your list fast” blog.

Some brands implement it by default. Others are told to do it by advisors, consultants, or execs chasing quick wins. Sometimes it’s just a box you check to hit a KPI, a target, or prove you’re “doing something.”

But just because it’s popular doesn’t mean it’s strategic. There’s a difference between doing what works and doing what’s easy. And over time, that gap becomes expensive.

The Pressure for Quick Wins

Growing an email list takes time. But when you’re running a small team and trying to hit weekly revenue goals, the temptation to “just do what works” is real.

Discount popups give you a little dopamine hit. Your list grows. You see conversions. But most brands never stop to ask: what kind of list am I building?

Lead Gen That Leans on the Bribe

When you trade a discount for an email, you’re not offering value. All you’re doing is offering a coupon that degrades the value of your product. There’s no trust, no brand story, no product education. Just a transaction.

And once someone sees that 15% off, what incentive do they have to ever pay full price again?

As Simon Sinek says, “If your customers are buying based on price, it’s because you haven’t given them anything else to consider.”

Discounts may fill your list, but they can hollow out your brand.

The Real Problem

Discounts aren’t evil. But when they become your primary lead gen strategy, you’ve stopped marketing. You’re just paying people to join your list.

It’s the most overused trick in the book.

And it’s not just ineffective… it’s quietly setting your brand up to fail.

The Real Cost of Discount-Driven Lead Gen

Sure, those discount popups might help you grow your list. But what are you actually building?

You’re Training Customers to Wait

When your first impression is a discount, that’s what people remember.

You’re telling them, “This isn’t worth the full price.” So they don’t buy unless there’s a sale, because why would they?

You’ve now trained your audience to expect a coupon… and wait for one.

You’re Eroding Perceived Value

If someone’s first interaction with your product is a 15% off code, they’re anchoring your brand to less than it’s worth. This hits hard if you’re selling high-quality, premium, or niche products where value perception is everything.

And if people only associate your brand with discounts, it’s harder to build long-term loyalty or justify higher pricing later on.

Think about Apple, they are well known for NEVER offering any sort of discount to the general public. Even on black friday, the deal is only getting a gift card with your purchase. The only deals they do offer are targeted towards students and the military. Apple has mastered perceived value.

Bonus Insight: This is classic pricing psychology. Lower perceived value = lower willingness to pay. We dive deeper into that in this blog on pricing strategy and perceived value.

You’re Building a Low-Intent Email List.

Here’s the hard truth: not all email sign-ups are created equal.

Discount-driven subscribers are often deal hunters, not loyal customers. They churn faster, convert slower, and are harder to retain long-term. It’s not about the size of your list, quality is way more important.

And that’s not to say you can’t serve these customers. There are still ways to attract these customers, put them in segment lists, and be more strategic with how you’re engaging with them.

You’re Stuck on the Discount Treadmill

The more you rely on discounts to convert, the harder it is to stop.

Customers start waiting for sales. Sales dip when you don’t offer one.

So you drop another discount… and the cycle continues.

It’s a slippery slope that leads to thinner margins, weaker brand perception, and customer relationships based on price, not value. This leads many small businesses to their death because they can’t dig themselves out of the hole they dug.

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Smart Lead Gen That Builds Real Brand Value

What if…

You could bring in the same amount of leads (or more) but with a higher average order value?

You didn’t need to discount anything at all and you still made more sales?

Lead gen actually helped you raise your prices and increase conversions?

That’s what happens when you stop chasing quick wins and start building perceived value. When you attract leads who actually want what you offer, because you’ve taken the time to educate, nurture, and position yourself as the better option.

If you’re ready to ditch the “please buy this” energy and build a brand that earns trust (and profits), here’s how:

1. Lead with Value

You’re asking for someone’s email, that’s personal. So why offer the most impersonal incentive possible? In marketing, we relate this to asking for marriage on the first date.

These help set up a relationship. They show your brand is here to help. And as a result you get warmer leads, more trust, and higher conversion potential over time.

2. Use Lead Magnets to Attract

3. If You Use Discounts, Use Them Intentionally

This turns discounts into a strategic nudge instead of a brand devaluation tactic.

Let Lead Gen Fuel Brands

Good lead gen does more than grow your email list. It grows:

• Perceived value
• Customer trust
• Long-term conversions
• Lifetime customer relationships

When you stop racing to the bottom, you free up the energy to rise to the top.

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Testing and Measuring the Correct Metrics

Your popup says it’s converting at 6%. Great, right? Not if that list is full of one-time discount shoppers who never open another email.

If you’re only tracking opt-in rate, you’re missing the full picture. What really matters is what those leads do next.

Split Testing: The Only Way to Know What Actually Works

You shouldn’t be guessing, you should be testing.

Try this:

• PDF vs. quiz
• Quiz vs. discount code
• PDF A vs. PDF B

Then segment each lead based on how they opted in. Tag them in your CRM or ESP so you know exactly where they came from. Add these segments to separate email follow-up automations for clean data.

Now here’s where it gets real:

• Who actually opens emails?
• Who clicks through?
• Who becomes a repeat customer?
• What’s the Average Order Value from each list?

You might find that your “lower-converting” lead magnet brought in buyers who spend more, return more, and need fewer discounts to stick around.

That’s why tracking engagement, not just raw signups, gives you a real view of success.

Brands Using Popups the Right Way

Discounts might get an email, but true lead gen builds trust, authority, and buyer intent. These brands are doing it smarter, offering real value in exchange for attention.

Lead Gen for Non-eComm Brands

Discounts might feel like a go-to tactic in eCommerce, but if you’re in B2B, home services, healthcare, or anything high-trust, automatic discounts provide no value to your leads or your business.

People aren’t looking for the lowest price, they’re looking for the most trusted, most capable, most confident provider. Especially in industries where timing is critical.

Imagine This:

A homeowner has a pipe burst at 11:00 p.m. They’re panicked. Stressed. Scrolling online, hoping someone can help. Do they want “the cheapest plumber in town”?

No.

They want:

• A quick response
• A clear message that says “We’ve got you.”
• A resource that helps them slow the damage before you arrive.
• A reassuring video or checklist that gives them control in the chaos.

This is where value-driven lead generation matters.

High-Value Lead Magnets for Service-Based Brands:

• “5 Steps to Control a Pipe Burst While You Wait for Help” (plumbing)
• “What to Do If You Suspect Termites” (pest control)
• “Free Brand Audit Checklist” (B2B/agency)
• “ROI Calculator for Solar Panel Installs” (home energy)
• “The Top 3 Red Flags Before Hiring a [Your Service]” (any niche)

These are way more effective than offering a $20 coupon. Because the lead magnet:

• Shows expertise
• Provides relief
• Increases perceived value before the sale even happens

When someone gets immediate value from your brand without paying, they’re far more likely to trust you when they are ready to spend.

Build the Brand, Not Just the List

The goal of lead gen isn’t just to grow a list. It’s to attract people who actually want what you’re offering. People who see the value, trust your brand, and are excited to buy.

When you lead with value over discounts, you build something more sustainable.

• Your average order value increases.
• Your customer retention improves.
• Your brand feels like a premium experience, not a clearance rack.

That’s the kind of lead gen that actually supports long-term growth.

So ask yourself:

• Is your pop-up positioning your brand the way you want to be perceived?
• Are you earning attention, or just buying it temporarily?
• If you removed the discount tomorrow, would people still sign up?

Because a strong brand doesn’t rely on tricks. It relies on trust. And the more trust you build, the less you need to discount.

Need help rethinking your lead generation strategy so it reflects the brand you’re building?

Let’s create a system that attracts real leads and helps your business grow through value.