Voyager lost $58 million in 2022 due to its incentive marketing plan

It is reported that Voyager lost $58 million in 2022 due to its incentive plan, which includes high-yield interest account, recommendation plan, etc. According to the court documents, Voyager executives expressed their concern that some of the high-yield products they provided to users would cause significant losses. Voyager executives always regarded the cost of the incentive plan as the marketing expenses necessary to obtain users. However, due to the large losses, they hoped to reduce the yield of some revenue products.

Interpretation of this information:

Voyager’s Incentive Plan: A Costly Gamble

Voyager, a digital asset brokerage firm, suffered a significant $58 million loss in 2022, reportedly due to its incentivized trading program. The scheme incorporated various rewards such as high-yield interest accounts and referral commissions that encouraged users to trade its platform actively. However, Voyager executives have revealed their concern that some of these high-yield products may cause significant losses, and the company has been forced to reassess its revenue streams.

The core of the problem seems to stem from Voyager’s markedly high rewards for client participation. Since the firm is competing with a vast array of digital asset platforms, it has to come up with offering attractive incentives to attract and retain customers. These incentives came at a cost, and the significant losses Voyager incurred have forced executives to rethink their entire reward structure. The company was likely assuming that the increase in trading volume through its incentivized program would offset these losses, but that does not seem to have been the case.

While Voyager executives have always regarded the cost of the incentivized program as necessary marketing expenses to obtain users, the losses they have suffered have forced them to rethink their approach. This change in stance may indicate that the company is not willing to gamble on its revenue streams any longer. A move that may not sit well with investors, customers, or the company itself.

The court documents paint a stark picture of the Voyager executives’ concern, and it appears that they may have been facing the dilemma of whether or not to continue their incentivized program despite the significant losses it caused. With the digital asset trading industry seeing increased competition, acquisitions, and new entrants, it seems Voyager may have to adopt a new approach to incentivize its customers and revise its reward structure.

In conclusion, Voyager’s incentivized program may have been introduced to retain and grow its customer base, but the cost of offering high-yield interest accounts, and referral commissions has resulted in significant losses. Voyager’s executives have expressed their concern, and it seems that they will be reassessing their reward structure shortly. What remains to be seen is whether Voyager can adapt to the industry’s changing market conditions and continue to win and retain customers without having to offer such high incentives.