qEngage :: Business :: Customer Segments, Key Value Proposition and Revenue Model
This post outlines our approach to the business model for qEngage.This is a general purpose model aimed at being platform agnostic, and we plan to refine our revenue model as we go along. Consider this Version 1.0 It’s best if you first go through the core working mechanism of the platform here, in order to understand this post better.
Customer Segments and Key Value Proposition
We have split our customers into two core categories. The first one is small communities (50–200 members) and large communities (1k–10k members). Our approach to the revenue model differs based on what category we are targeting.
(a) Small Communities(50–200 members)
These involve communities that are hobbyist groups, SME groups, slack workspace groups, groups specifically built for getting feedback on early stage products etc. These can involve other categories of small groups as well. As these communities are small (with some having the potential to go large), we intend to take a cut of the bounty that these groups set for reward distribution, where we take a cut each time a user redeems their tokens.
Since they have the potential to go large, our key value proposition for them is that we will drive engagement and support their growth.
(b) Large Communities (1k–10k members)
These are more evolved groups for which engagement is more important. Take for example — ICO communities or Developer groups or large Business Brands.
We will bill them on a monthly subscription basis, and not take a cut on the token redemption, to make it more economic for them and propose a strong value proposition.
This is a key value prop here, since it makes sense for larger brands and businesses to be billed not on the basis of their large user groups, but on the basis of a fixed fee irrespective of group size.
Note:- The categorisation of large v/s small is currently on the basis of number of users only.
Revenue Streams In Detail
We currently have envisioned two core revenue streams. Details about them are outlined below. It’s best if you first go through the core working mechanism of the platform here, in order to understand our revenue model better.
The SaaS subscription
The SaaS model works by charging businesses for integrating our framework into their channels. This is essentially a subscription based model with a monthly fee for integrating our solution into the community/group.
The SaaS subscription model makes more sense for large budget groups such as Brands and Companies. It is is cost effective for them as it is a flat subscription fee irrespective of the size of the group (for now).
The Transaction cut
Another option, is us taking a cut of the bounty set by the admin, at each redemption date. If you haven’t read about the bounty distribution mechanism, please do it here. It’s essentially a transactional cut.
Concretely, it’s taking a transactional cut everytime a redepmtion happens on the community/group. We are building out our platform such that there are multiple redemptions by users in the community to avail prizes.
For smaller communities, the transactional cut makes more sense, as the bounties are small and paying a hefty subscription fee might not be a good fit.
Conclusion
We are exploring the possibility of pay per user model, which is another option for generating revenue. We intend to explore this stream in detail in the future.
As you can see, our revenue model is designed to be impact driven and customer beneficial from the get go, to ensure that the advertisers get their money’s worth by investing in the platform. We also have designed it in a way that our solution is easily adoptable for both large groups and small communities, so that both groups can leverage the power of our solution.
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