This post was originally published in [2022] and has been fully updated for 2026 with new data and tools.
Why are we so obsessed with that “Apply Coupon” button?
The purpose of a promo code goes much deeper than just saving a few dollars; it’s a psychological trigger designed to reduce “cart abandonment” and create a sense of urgency.
Today, we’re exploring the hidden mechanics of how promo codes influence our spending habits and how you can use a free tool to ensure your discounts are actually growing your business, not just shrinking your revenue.
The real purpose of promo codes is to generate sales for a business. They do this by helping someone visit their website and creating urgency to buy a product with the coupon.
Keep reading, and I’ll share 2 secrets with promo codes. I’ll also share 3 ways we can earn money from them and coupons. Plus a tool that simplifies the hunt for promos!
Promo Code Profit Calculator
Don’t go broke giving discounts!
Revenue Strategy: How Do Companies Use Promo Codes to Increase Total Profit?
Companies make money from promo codes because they earn more money from the sale of a product than from giving a discount to it on the promo code.
I hate to admit this, but I used to be in the car business a long time ago, meaning I sold cars. This reminds me of a trick that the car business used to do, where they mailed out a key.
The promotion was that if you showed up at the car lot and the key opened a certain car, then it would be yours. Of course, you probably wouldn't get the car, but while you were there, why not take this other car for a test drive?
Marketing is a big portion of business, and promo codes are a way for companies to sell more of their products.
If you've been thinking about a certain product and discover a promo code that gives 10% off, then it just might push you over the edge and make the purchase.
When you make the purchase, the company earns a commission. I hate to say it, but apart from being in the car business, I used to be in the telemarketing business.
Now, you really don't like me, right?
We would call targeted lists and invite people to a presentation, and then try to contact them afterward and make the sale.
If someone was on the fence, one tool I had was to drop the price to get the deal done. Another tool I had was vacation vouchers that I would give away. You could purchase them for a very small amount of money, and the perceived value was VERY large.
This is somewhat similar to promo codes, which really are online coupons. Coupons come from a French word meaning (to cut) and were mailed to consumers in 1887. It offered a free glass of Coke if they tried it in a nearby pharmacy.
Oh, and at the pharmacy, they just might make a purchase. Usually, the money earned from the purchase was more than the free Coke.
In 2020, online promo codes (A.K.A online coupons) surpassed physical coupons for the first time. Thanks to online shopping taking over, this trend just might continue.
The frustrating part (maybe you have experienced this) is hunting for promo codes and trying to use them. I mean, trying because most of the time (from my experience) they don't work.
There are browser extensions such as this one HERE that do the hunting for you and apply the code automatically when you want to purchase something online. Plus it's FREE, so why not?
Even better is that this tool allows you to save the item. Then, when the price of the item has dropped, the tool will notify you. Patience does have a reward.
You might be wondering what the catch is with this extension, right?
The browser extension earns money from affiliate marketing. Since I've always thought affiliate marketing was one of the best tools to help the little guy get ahead financially, I don't like the extension.
Still, it helps people save money and is better than hunting for promo codes (since time is valuable). Affiliate marketing is still a wonderful way for someone to earn extra money.
What's so great about it is you can do it anywhere, anytime, around your schedule, in nearly any niche, and it can be very fun.
If you're interested, I have a whole system you can check out for FREE HERE.
The second catch or "secret" with using this extension is they collect your shopping data. According to the browser extension, they don't sell the data or collect any data from non-shopping sites.
This is similar to Facebook (Meta) where they collect data and use that for marketing. Oh, doesn't Google collect data and use that for advertisers as well?
If having these sites collect data is worrisome to you, an idea that might be helpful is to use a VPN. I talk more about what you can do with this tool in this post HERE.
Affiliate Marketing: Can You Get Paid for Sharing Promo Codes Online?
Websites earn money with promo codes using advertisements, affiliate offers, and kickbacks.
You probably know there is money in promo codes, but the million-dollar question is how can we earn money with them.
The easiest way to earn money in the promo code business (apart from using them) is by doing what Mr. Beast does. You know the YouTuber who gets millions of views from videos such as putting a million Orbeez in his friend's backyard (I don't even know what an Orbeez is).
He creates content and then promotes the extension that finds coupon codes. Every time someone downloads a free extension, he earns money.
This is called affiliate marketing, and I'm giving away a free guide on how to earn the MOST money with it HERE.
You're probably not going to make millions of dollars like Mr. Beast, but even if you have fun creating content around stuff you're into and earn money, then that's a win, right?
The content could be on YouTube, TikTok, a blog, podcasting, or all of the above. The second way to earn money with content is with ads. Ads are a tricky business, and I've found they can pay more money on a blog than on a YouTube channel.
Another way is to find REALLY good coupon codes. Just make sure they work right? Then go to Forums or Quora and search for that product and tell people about the coupon code.
Oh, and then mention you find coupon codes using a browser extension like this one HERE, that you earn money for when someone tries it out, plus the extension is FREE.
Apart from promo codes, there are some people who sell coupons on eBay. I've seen a Burger King coupon code that they mail to people being sold on eBay. A popular one is Home Depot, and the company was giving them out to people attending the Home Depot training webinar, like this place HERE.
Since the coupon provides 15% off on anything up to $200. The person buying the code can save $200, and it might be worth it to spend $40 to save $200.
Another way is to clip coupons that you don't use and then list them on eBay. Heck, there might even be coupon books that you can buy, and you could sell each individual coupon on eBay.
This reminds me of a funny story about dolphins. There was a dolphin in a tank, and sometimes garbage would collect in the tank.
The trainer didn't want to collect the garbage, so he or she trained the dolphin to collect the garbage and, in return, would get food.
Turns out dolphins are smart, maybe smarter than some humans. The dolphin would hide garbage and tear off chunks of it for food; this way, he could get lots of pieces of food with 1 piece of garbage.
I hope this post on promo codes was helpful.
Bye for now.