4 ms·

Gaming Robinhood’s Free Stock Promotion – Or, How to Blow $350

124 points by uberstuber 9y ago

astura 9y ago
Robinhood's original referral promotion (and the one I signed up for) was $10. Presumably people were just collecting the $10 and not using it to buy stock so they pretty quickly changed it to "1 stock." If it were still $10 the person would have made $230 rather than losing money. Also, what's the TOS on this referral promotion? IIRC, for many services these referral codes are for private distribution and forbid this sort of thing.
- uberstuber 9y ago
  I didn't find anything in the TOS strictly forbidding it, though I wouldn't be surprised if I overlooked it. I figure it's still a win for Robinhood if they get more sign-ups.
  - stockstream 9y ago
    I'm quite certain its ok to share referral codes in that way- I've referred probably thousands of people though my project. Shameless plug: https://stockstream.live/ https://stockstream.live/
    - astura 9y ago
      Ok, thanks. I had just saw something like that for another service at some point so I thought it might be common. For example, the Uber policy: >Uber may, in its sole discretion, create referral and/or promotional codes ("Promo Codes") that may be redeemed for discounts on future Services and/or a Third Party Provider's services, or other features or benefits related to the Services and/or a Third Party Provider's services, subject to any additional terms that Uber establishes. You agree that Promo Codes: (i) must be used for the intended audience and purpose, and in a lawful manner; (ii) may not be duplicated, sold or transferred in any manner, or made available to the general public (whether posted to a public form or otherwise), unless expressly permitted by Uber; Reading it again that might not actually say what I thought it did.
fitzroy 9y ago
Have you thought about putting the code (or a similar one) in the article to try and make up the difference? Nothing like content marketing to turn a failure into a win!
- gizmo686 9y ago
  It looks like he did. "sign up using my link" is hyperlinked to a referal address.
- uberstuber 9y ago
  I did put the referral link in the article :) Doubt it'll make up the difference but it could soften the blow a bit.
  - fitzroy 9y ago
    Ahh... I completely missed that. :)
ReverseCold 9y ago
Hey, I noticed your site doesn't have SSL. https://letsencrypt.org/ https://letsencrypt.org/ SSL Certificates are easy and free to get, and they protect the privacy and security of your users. They also prevent ISPs from doing shady things like injecting ads into your site.
- shakna 9y ago
  Actually there is SSL, but it's signed to HostGator because it isn't set up correctly, mostly I think because HostGator would make it difficult for something like letsencrypt, which raises the cost of entry. > You are welcome to provide us with the SSL and we will install it for $10, or you can purchase a 128bit/256bit Comodo certificate directly from us for $50.00 [0] [0] http://www.hostgator.com/services http://www.hostgator.com/services
- leggomylibro 9y ago
  Any suggestions for good guides for setting up LetsEncrypt with something like, say, a DigitalOcean droplet with a default Wordpress install?
  - tribby 9y ago
    certbot[1] is a tool for automating the Lets Encrypt process on something like a DO droplet. there's some info about SSL in the wordpress docs[2] 1. https://certbot.eff.org/ https://certbot.eff.org/ 2. https://make.wordpress.org/support/user-manual/web-publishing/https-for-wordpress/#implementing-https-for-wordpress https://make.wordpress.org/support/user-manual/web-publishin...
  - captn3m0 9y ago
    If you're using apache, mod_md will automatically setup LE for you: https://httpd.apache.org/docs/trunk/mod/mod_md.html https://httpd.apache.org/docs/trunk/mod/mod_md.html
kapauldo 9y ago
What a great write up. Thanks for sharing this.
mattmurdog 9y ago
Overtime you will make that $100 back. But quite an interesting article. I think you can do better signing people up to mealpal and their 50$ amazon GCs.
- iopq 9y ago
  Well, he could have just bought $350 in stock and make even more.
soared 9y ago
Awesome write up, I'm amazed it performed so well. Most people's first few brushes with adwords end very poorly. At work my only job is to manage display campaigns.. I'm wondering if I could do something like this in my free time. FYI - if this test was ran for much longer or at a larger scale his adwords account probably would've been locked. Google has strict affiliate rules and you aren't supposed to have two accounts sending traffic to the same domain. Unfair advantage: https://support.google.com/adwordspolicy/answer/6020954?rd=1 https://support.google.com/adwordspolicy/answer/6020954?rd=1
- j_s 9y ago
  Running Dropbox affiliate ads cost me my Adwords account | https://news.ycombinator.com/item?id=3575868 https://news.ycombinator.com/item?id=3575868 (Feb 2012, 112 comments) One of the key points mentioned in the discussion there is that a ToS violation can be used to terminate the account years later.
- ben1040 9y ago
  Google definitely started invoking the "unfair advantage" policy when lots of people started buying Adwords ads for their own Dropbox referral codes.
aurbano 9y ago
Referral links are the most amazing financial product I've ever seen. I'll start from the end: Companies get FREE advertising from YOU, and unless you get them an actual customer, they don't pay. Effectively companies are “forcing” you to advertise for free (forced by your desire to "make easy money"), and then they pay you a commission if you get them a paying customer. And you may fail to realise that you are already paying them by placing their ad in your page. Because in order for you to get money, you need to get them a click that ends in a paying customer. You could have pointed that customer to something you owned and theoretically you could have received the full value of their purchase. So losing that is a payment you make in order to "refer" a customer... Its crazy!
- IanCal 9y ago
  This is a remarkable use of the word "force". Companies offer to buy purchasing customers from you. It's up to you if you want to take that deal or not. > I'll start from the end: Companies get FREE advertising from YOU, and unless you get them an actual customer, they don't pay. Essentially, commission based sales. > You could have pointed that customer to something you owned and theoretically you could have received the full value of their purchase. Along with all the costs of actually selling something, and assuming I have something to actually sell. Let's phrase regular sales in the same way, and it sounds even worse. Suppliers are "forcing" you to get stock from them (forced by your desire to "sell products and make money"), and make you pay for it even if you never manage to sell it on! You're paying them directly and have to then store it and convert the customers. The risk is entirely on you as well. You could have sold things you built entirely from scratch. So all that purchasing cost is a payment you make in order to "sell an item". Referral links are one of the simplest and most obvious products to me, it's just a middleman. Sell an item and get X, with no upfront commitment or cost.
  - aurbano 9y ago
    I agree with you, and I should’ve phrased it differently to get the point across better. I really enjoy looking at something from an unusual perspective. The upside to you if you’re referring people is what you mentioned, the ability to sell something without any risk or upfront payments. So in reality its a purely symbiotic relationship...
deleted 9y ago
[deleted]

124 points by uberstuber 9y ago

Robinhood's original referral promotion (and the one I signed up for) was $10. Presumably people were just collecting the $10 and not using it to buy stock so they pretty quickly changed it to "1 stock." If it were still $10 the person would have made $230 rather than losing money. Also, what's the TOS on this referral promotion? IIRC, for many services these referral codes are for private distribution and forbid this sort of thing.

uberstuber 9y ago
I didn't find anything in the TOS strictly forbidding it, though I wouldn't be surprised if I overlooked it. I figure it's still a win for Robinhood if they get more sign-ups.
- stockstream 9y ago
  I'm quite certain its ok to share referral codes in that way- I've referred probably thousands of people though my project. Shameless plug: https://stockstream.live/ https://stockstream.live/
  - astura 9y ago
    Ok, thanks. I had just saw something like that for another service at some point so I thought it might be common. For example, the Uber policy: >Uber may, in its sole discretion, create referral and/or promotional codes ("Promo Codes") that may be redeemed for discounts on future Services and/or a Third Party Provider's services, or other features or benefits related to the Services and/or a Third Party Provider's services, subject to any additional terms that Uber establishes. You agree that Promo Codes: (i) must be used for the intended audience and purpose, and in a lawful manner; (ii) may not be duplicated, sold or transferred in any manner, or made available to the general public (whether posted to a public form or otherwise), unless expressly permitted by Uber; Reading it again that might not actually say what I thought it did.

fitzroy 9y ago

Have you thought about putting the code (or a similar one) in the article to try and make up the difference? Nothing like content marketing to turn a failure into a win!

gizmo686 9y ago
It looks like he did. "sign up using my link" is hyperlinked to a referal address.
uberstuber 9y ago
I did put the referral link in the article :) Doubt it'll make up the difference but it could soften the blow a bit.
- fitzroy 9y ago
  Ahh... I completely missed that. :)

ReverseCold 9y ago

Hey, I noticed your site doesn't have SSL. https://letsencrypt.org/ https://letsencrypt.org/ SSL Certificates are easy and free to get, and they protect the privacy and security of your users. They also prevent ISPs from doing shady things like injecting ads into your site.

shakna 9y ago
Actually there is SSL, but it's signed to HostGator because it isn't set up correctly, mostly I think because HostGator would make it difficult for something like letsencrypt, which raises the cost of entry. > You are welcome to provide us with the SSL and we will install it for $10, or you can purchase a 128bit/256bit Comodo certificate directly from us for $50.00 [0] [0] http://www.hostgator.com/services http://www.hostgator.com/services
leggomylibro 9y ago
Any suggestions for good guides for setting up LetsEncrypt with something like, say, a DigitalOcean droplet with a default Wordpress install?
- tribby 9y ago
  certbot[1] is a tool for automating the Lets Encrypt process on something like a DO droplet. there's some info about SSL in the wordpress docs[2] 1. https://certbot.eff.org/ https://certbot.eff.org/ 2. https://make.wordpress.org/support/user-manual/web-publishing/https-for-wordpress/#implementing-https-for-wordpress https://make.wordpress.org/support/user-manual/web-publishin...
- captn3m0 9y ago
  If you're using apache, mod_md will automatically setup LE for you: https://httpd.apache.org/docs/trunk/mod/mod_md.html https://httpd.apache.org/docs/trunk/mod/mod_md.html

kapauldo 9y ago

What a great write up. Thanks for sharing this.

mattmurdog 9y ago

Overtime you will make that $100 back. But quite an interesting article. I think you can do better signing people up to mealpal and their 50$ amazon GCs.

iopq 9y ago
Well, he could have just bought $350 in stock and make even more.

soared 9y ago

Awesome write up, I'm amazed it performed so well. Most people's first few brushes with adwords end very poorly. At work my only job is to manage display campaigns.. I'm wondering if I could do something like this in my free time. FYI - if this test was ran for much longer or at a larger scale his adwords account probably would've been locked. Google has strict affiliate rules and you aren't supposed to have two accounts sending traffic to the same domain. Unfair advantage: https://support.google.com/adwordspolicy/answer/6020954?rd=1 https://support.google.com/adwordspolicy/answer/6020954?rd=1

j_s 9y ago
Running Dropbox affiliate ads cost me my Adwords account | https://news.ycombinator.com/item?id=3575868 https://news.ycombinator.com/item?id=3575868 (Feb 2012, 112 comments) One of the key points mentioned in the discussion there is that a ToS violation can be used to terminate the account years later.
ben1040 9y ago
Google definitely started invoking the "unfair advantage" policy when lots of people started buying Adwords ads for their own Dropbox referral codes.

aurbano 9y ago

Referral links are the most amazing financial product I've ever seen. I'll start from the end: Companies get FREE advertising from YOU, and unless you get them an actual customer, they don't pay. Effectively companies are “forcing” you to advertise for free (forced by your desire to "make easy money"), and then they pay you a commission if you get them a paying customer. And you may fail to realise that you are already paying them by placing their ad in your page. Because in order for you to get money, you need to get them a click that ends in a paying customer. You could have pointed that customer to something you owned and theoretically you could have received the full value of their purchase. So losing that is a payment you make in order to "refer" a customer... Its crazy!

IanCal 9y ago
This is a remarkable use of the word "force". Companies offer to buy purchasing customers from you. It's up to you if you want to take that deal or not. > I'll start from the end: Companies get FREE advertising from YOU, and unless you get them an actual customer, they don't pay. Essentially, commission based sales. > You could have pointed that customer to something you owned and theoretically you could have received the full value of their purchase. Along with all the costs of actually selling something, and assuming I have something to actually sell. Let's phrase regular sales in the same way, and it sounds even worse. Suppliers are "forcing" you to get stock from them (forced by your desire to "sell products and make money"), and make you pay for it even if you never manage to sell it on! You're paying them directly and have to then store it and convert the customers. The risk is entirely on you as well. You could have sold things you built entirely from scratch. So all that purchasing cost is a payment you make in order to "sell an item". Referral links are one of the simplest and most obvious products to me, it's just a middleman. Sell an item and get X, with no upfront commitment or cost.
- aurbano 9y ago
  I agree with you, and I should’ve phrased it differently to get the point across better. I really enjoy looking at something from an unusual perspective. The upside to you if you’re referring people is what you mentioned, the ability to sell something without any risk or upfront payments. So in reality its a purely symbiotic relationship...

deleted 9y ago

[deleted]