Four numbers that should never be confused
An offer might promise up to $100 in value to each eligible customer. That is the individual reward cap, not necessarily the campaign budget or the price of funding the offer.
The entry capacity controls how many people can accept the promise. The gross reward liability is the possible sum owed if a shared trigger occurs for every accepted entry. The funding and service costs are contractual amounts determined by the actual campaign terms.
A deliberately simplified example
Suppose a promotion accepts 1,000 eligible entries, each with a maximum $100 benefit. The worst-case gross promise is $100,000. If the trigger has an illustrative 5% probability, $5,000 is the simple expected gross payout before fees or risk adjustments. It does not cap the amount owed if the outcome happens; the entries share the same trigger.
An actual offer must be evaluated using the approved funding mechanism, market depth, contract availability, fees, eligibility, fulfilment and timing. Do not mistake a market probability for a guaranteed all-in campaign price.
Ask for the full picture before launch
- Which charges are paid before the campaign?
- What is charged per accepted entry, and on what base?
- How are funds reserved and unused balances treated?
- Who is contractually responsible for promised rewards?
- What happens on cancellations, refunds and unresolved events?
An understandable campaign is one a merchant can approve without having to reverse-engineer its economics.