I post this for feedback, for inspiration and progression. Fire at will. Its long, real long, but holds value. Thanks for reading.
Before i begin, i would like to share one personal opinion. For those of you who say an idea is worthless until it is executed, you are wrong. The ideas are the fundamentals, the foundation. It is the beginning of all endeavours, the initial point of creation. I agree, the thoughts are generally only relevant if acted upon, but i would like to stress the importance and value the idea itself holds, do not undermine it. Keep thinking, even when it may seem illogical, or impossible. Darwin is a fine example of such perseverance.
I am 29, an entrepreneur, serial thinker, bipolar. This idea ive been trying to prove wrong, for 3 years now, without success. Have literally hundreds of >1m valuation ideas, some 10+m, but always looking for more. I need billions. It is the only way i can do what i want to do, too actually make a real difference or impression, i need to have these mass resources. This is not greed. This is perfectionism, its all or nothing.
Lets set the stage….
In this global age of information, connection is king. Marketing in itself has fundamentally changed. Reaching someone is no longer enough, you must engage, and captivate in order to make an impression. Companies are more then ever searching for innovative ways to acquire new consumers. My new application/idea is basically a marketing app, if you want it simply.
Over the years, we have grown accustomed to advertisements, and we seem to accept this as a way of life. We acknowledge this as a part of business, and adapt accordingly. Online, mobile, TV, radio, its all there i don’t need to say it, ads, ads all over the place. Its annoying, and inconvenient. Its also largely, ineffective and inefficient for the merchants as well. The expected impact or impression rate on most advertising campaigns is below 10%. This is absolutely terrible, but it is accepted.
My business will change all of that. It does so in many ways, but one main difference is we allow our users to pick the ads or businesses they wish to interact with, and reward them for there time accordingly. This concept is quite vast, and hard to explain, so i am going to try and lay it out simply.
Lets call the new business, Score. Score is an application that connects merchant and consumers.
The applications is free for all users, forever. Revenue is from merchant side.
As a small business or merchant, there are advertising campaigns that you create, and pay for each time you publish one. There are many different options available. You can create a video commercial, and send it out locally or globally. You could advertise a special sale at your restaurant, R20;buy dinner…get free wine” and push it out to locals thru the application. You may be a global corporation, wanting to increasing brand awareness, so you create a trivial challenge incorporating your brands mission, and engage users on a personal level. You may be Ford Motor Co, looking for new marketing strategies, so you create a campaign, engage users, reward those that complete your challenge, give away a few cars. The possibilities are grand, and this discussion only outlines one single “facet” in the application. A part one, of 4, so to speak. The other 3 are fairly standard business models, that will be adapted and improved, to increase user base and market share.
The entire platform is supported by a reward credit. The users are enticed to use the application for the benefits of the rewards. The reward/credit type is undetermined at this time, but most likely will be actual fiat currency. Cash rewards. The reward credit is funded via merchants and corporate businesses. They will create “campaigns”; push out a sale, advertise a commercial, or a challenge and along with it, there is a reward, for viewing or completing the challenge. The consumer earns the reward.
To best understand the business model, I will describe how the service will work, from both perspectives. The possibilities are not limited to these scenario, but are too help you envision what the application can accomplish.
So Merchant A(lets say this is Subway, or a local sandwich shop) is having a hard time marketing to new customers. They heard about this new marketing service called Score. So they sign up for our SAS, get approved, and pay a membership fee. One of the features of this new service, is the ability to create a local campaign advertising his product. He makes sandwiches, and they are normally $10. He wants to try the service out first, so he creates a new campaign, and a sale, for $8.00 sandwich. This campaign, maybe a video or slideshow along with some brand info, will go out locally to the area he selects, and push notify the users of his sale on today at lunch. Now he has a few options to reward his customers, as this is what the platform is built on.
A-pay a one time marketing fee, and send out the sale at 8.00
B-send out the sale at 10.00, and give a free 2.00 Bingo credit to all purchasers
C-send out the sale at 8.50, and free 1.50 Bingo Credit on purchase
He chooses the best reward for his consumers, and his convenience. That he feels is most likely to succeed.
Buyer A(Joe), is a hard working man. He likes to save when he can, and collect rewards when he shops. He heard about a free way for him to sign up for contest, win prizes, and collect cash rewards for his participation. Its lunch time, and Joe is ready to choose where to buy lunch. Around 11am, he gets a dingy on his phone from this new Score app he downloaded. “Hey, its subway, come try our new sandwich, we have 10% off today only, and also well throw you back a buck(1.00) Score reward for being a new customer.”
Sounds good to Joe, so he heads to subway. Buys his sandwich for 9.00 and scans his Score phone app, and collects 1.00 cashback on the spot.
This would now be one full circle example, from merchant to consumer. For those more inclined, I have about 80% of that entire scenario solved, from initial creation, to financial processing. I realize the effort required in order to fulfill such a transaction.
Hermes another scenario using the same application.
Coca Cola or Red bull say, sees our 1million users, and there marketing team wonders how Score would work for them. They sign up, and create there first advertising campaign, a different one, called trivial advertising. They like this idea, because it engages the user and creates a longer lasting impression. Using existing media and resources, the campaign is completely custom, and controlled by Coke. They decide to have 3 videos, and 9 questions, in total. Each video is 45 seconds long, and follows with 3 multiple choice questions. The first video is about there history, and the second, about how they help the community, the final, the standard issue coca cola ad. They have a few ways to pay for this, and reward the users that engage in the advertisement.
A-Pay a one time fee, and reward each viewer with 0.10 credit, or however much the industry CPV would be, for completing the challenge.
B-Pay a one time fee, and have a global reward, 5 prizes. Trips, a car, wonderland passes, whatever they determine they can budget for. The viewers, and correct answer winners, would be entered into the contest, and drawn winners rewarded.
C-Pay a one time fee, have Score credit as the final prize. Total pool of 5,000. Distributed among random users of the app, that completed there challenge. Everyone gets to see who won, like a Facebook community connection of sorts.
Another campaigns could simply pay users for visiting a store. You would allocate 500.00 for example, and pay 1.00 to each user that enters your store, and the app uses GPS among other logistics software to pay the reward upon entry. Using this same soft-stack we can create campaigns, such as an adventure hike, and whoever reaches the physical location target first, gets a free kayak. You can also pay reward upon purchase, as a loyalty incentive.
McDonald’s, spends millions on these stupid mail coupons that hardly get used. Its a waste of paper, and it gives them zero insight into there consumer, its a gamble. Instead of mass mailing, you do selective targeting. Would you like a McDonald coupon pack for this month? OK, its now in my Score app coupon collection. They even offer incentive, if i actually use the coupons, i get 0.50 Score reward on the spot. If i don’t want it, i don’t want it, we all win, and save trees. This is all valuable data for Mcdonalds. They now decide who they want to send coupons offers to, based on past purchases, maybe even offer better discounts to loyal customers.
These are examples, to help you envision what the application does. It is not limited to these, i simply cannot explain it all, or solve it all. I have well over 50 pages of business concept and plan, and have hardly touched the surface.
Many will scrutinize, which is what i want, but please be diligent in your thought, before commenting. It goes well beyond a few paragraphs. I cannot spoon feed.
This is a gold mine for data collection as well. Worth more then the advertising revenue i feel.
You may say it doesn’t solve a problem, but if you dig deeper, you will see that it solves all the problems, even the ones it creates. For consumer and merchant. It has massive appeal to the brick and mortar stores, who have limited options for reaching customers. It saves consumers money, and allows them to feel as if there are more in control. Why do we have AI trying to decide who we are, what we want? You could have simply asked.
I don’t even know what to do with this. I have owned and operated successful business. This is entirely something else. To compose this idea into a proper business plan would take me 6 months of full time effort. To find a team, build the app…2 years at min. The funds required i cannot even figure that out. You could blow through cash so fast before seeing any profit. It is possible to start small and scale, but even then i would need close to 2million on a proof of concept.
I’m lost. I don’t even know how to begin to explain this to someone. I know the model is effective and excessively profitable, but trying to relay the entire vision is a challenge. Does anyone understand this, or what it has potential to be?
Ever heard of the FAANG? It could be plural.