The Token Effect

Practical Sales Training™ > How To Convert > The Token Effect

 

 

 

 

What is it?

When you exchange money for tokens it distorts your understanding of value which can have both positive and negative impacts.

 

Why does it work?

It works because we are used to equating money with purchasing power – the larger the number the better.

But a larger number doesn’t always mean a lot more value. Let me explain; It costs 1000 tokens to buy a toy at the fairground. The toy costs £5, but you may well spend £15 to “win” enough tokens to get the toy for “free”.

This also happens when you travel. If you exchange £100 for 1,732,895 Indonesian Rupiah it feels like you somehow have more money. The units of value are changing and you equate more units with more worth, 1.7M of anything is a lot… right?

 

How can you use it?

 

Example Scenario: Arcade Gaming Card System

At a family entertainment centre, you don’t use cash at each machine. Instead, you buy a game card and load it with “credits.”

• £10 buys you 1,000 credits

• A claw machine costs 100 credits per play

• A basic prize costs 1,200 credits to redeem

Why it works:

Instead of thinking “this claw machine costs £1,” you’re thinking in credits, and it feels like you’re spending less – even though you’ve paid more to get those credits and potentially overpaid for the prize value in return.

The high number of credits (1,000 vs £10) also tricks the brain into thinking you’re getting more value than you actually are.

How to use this:

• Create a “token” or “point” system with larger numbers to increase perceived value

• Use these tokens for upgrades, rewards, or purchases inside your ecosystem

• This approach can also make discounts feel more generous – “Save 500 points” sounds better than “Save £5”

It’s a clever pricing psychology tool that can increase sales and engagement when done ethically.

 

See also

• The Points Effect
• 180+ ways to improve conversion
• 40+ ways to increase buyer spend