We could remember writing about a futuristic app that’ll pay you for exercising but … ***Drum rolls*** Sweat coin is here, it makes you sweat, it’s a coin and we are particularly interested in itemizing “How does sweatcoin make money while making you sweat” ?
Sweatcoin is part of a growing trend in digital fitness apps that offer rewards the more you exercise.
Apps called Bitwalkingand Gympact also pay users in virtual currency,
while Charity Miles turns steps into charitable donations for the cause of your choice.
You see, the Sweatcoin app is free to download and use. But they need revenue to sustain themselves –
Let us explain how sweatcoin make money from our research;
- Fund raising
Till now, the company has been successful in raising $5.7 million in a seed round led by Goodwater
Capital with participation from Greylock Partners, Rubylight, Seedcamp, and SmartHub.
How does sweatcoin makes money or why would anyone invest their cash into the fund raising round of an app that pays people money ?
Understand that for anyone to put their investment into any company,
that company must be making money or have the potential of making money.
Other than this, Sweatcoin is also working on honing its peculiar revenue model which capitalises on partnerships, engagement and network effect.
This is more elaborating when trying understand “How does sweatcoin make money”
Offers on Sweatcoin can be categorized into two types: Daily (partner) offers and Marathon Offers.
That is, a user with sufficient (~10-50) Sweatcoins can either use them to buy daily offers, discounts,
or trials from one of the partner company or can keep on collecting (~20k)
Sweatcoins to buy actual products (marathon offers) like iPhone X, Samsung TV, etc. or convert it into fiat.
The partner-offer strategy model is similar to Groupon’s business model where the company partners with other brands to provide offers and discounts to its customers.
These brands pay Sweatcoin to get featured on its app. The partnership contracts,
just like Groupon, differ for different brands though.
This more elaborate on how sweatcoin makes money
- Sweatcoin Upgrade Plans
Here is another way on how does sweatcoin makes money.
You see, Sweatcoin limits the number of coins that you can earn via the app per day and they charge you if you want to upgrade the number of coins you can earn.
This is a well-defined business strategy which limits the number of people who become eligible for the marathon offers – given the limitations of Sweatcoin plans and referral strategy,
the marathon offers are usually completed in 24 months, which is a great strategy to keep a user hooked to the application for long.
The upgrade will charge you a specific amount before you can start earning on the marathon level.
This is very informative on how do sweatcoin makes money.
- How does sweatcoin make money again ? Let’s ask revenue from advertisement experts.
Besides the commission and fees from featuring partner brands, Sweatcoin also makes money through in-app advertisements.
Very educative on how do sweatcoin make money.
Just like many other applications,
Sweatcoin has incorporated Google ads in its revenue model as a secondary revenue source.
The company offers an easy way to earn Sweatcoins to the users in the form of daily bonus.
All they have to do is to watch an advertisement and they get compounded bonus every day.
- Affiliate marketing
From indications, the products sweatcoin enlist on their buying section are intended to give them
a certain percentage when customers click to buy the product through the sweatcoin app.
That is one simple way of how sweatcoin makes money
Conclusively, we have no intention to predict whether Sweatcoin, as a company, will succeed or not.
Nope, this is to look at the methods it uses it cleverly position itself and why it has garnered so much attention in revenue making.
The very prospect of earning while just walking makes it great introductory content.
It’s catchy and is bound to attract attention.
Just the novelty of the idea helps them gain quite the traction since
this has the potential to be spread via word-of-mouth.
The plans that they have set forth on the future of Sweatcoin, if implemented properly, could mean even more adoption.
This goes to show one can make money out of most of the offerings you’ve got.
One just has to dig deeper for methods that are not conventionally used such as, them making back few of coins sent into circulation.