Re:Apply HN: Snapchat for gifting
by akyker20 on Wednesday April 06, 2016 @06:57PM
(#11442982)
Nice idea guys! I would love to receive a "gifting experience" like this for a birthday or graduation. It definitely beats a dull card in the mail or even some piece of junk I will probably never use. Quick question: Any idea how you would turn this into a business? Would you take a percentage of the contributions? I think that would be a bit odd. Would you make the original "seedling" planter pay?
[ Parent
| on HN ]
Thank you! Yes, we have two revenue models.
The first is business to consumer. We take 2% of fund contributions and 8% on affiliate referrals. Our goal is to keep the cost below a greeting card. The average gift card is $50, which would translate to a cost of $1 for the Seedling.
The second is business to business. We take a 5% royalty on each licensed transaction. We're building our technology as modular web services so we can license some of the underlying functionality without compromising the Seedling brand. For example, Amazon could license and white label the Seedling experience and integrate it into their checkout flow.
To illustrate how that scales:
B2C: $1 billion fund contributions processed
B2B: 20 million licensed transactions
Total revenue: $110M