3X Cash Back, plus Stock Back at over 2,000 stores. Every day between today and November 30. This addition to our offer is due to the looming recession, the economics of attracting new member/shareholders, the economics of scale, and frankly, it was time.
Why Triple?
Go big or go home. At the end of the day, iConsumer needs to have a lot of members. As a simple goal, we say about 1,000,000 people participating. That’s because the kind of deals we can get from stores, plus the data we are able to glean from members’ shopping truly reaches a critical point when we have lots of members. That’s what we mean by scale.
The number of people interested in cash back rebates far exceeds the number interested in experiencing the growth of a startup. It was a great place to start, but it’s time to move on. Our belief is that the marriage of the two (great upside with current rewards) is an unbeatable combination.
Sticky
Halloween was yesterday, but this kind of sticky refers less to candy-coated fingers and more to the likelihood that a new member will continue to shop after joining. If they stay to shop, we’re “sticky”. But if they flit off to some other site for their sugar fix, we’re not so sticky.
We’ve already seen that for some people, the attractiveness of building a business through their shopping is sufficient motivation. Especially if our stock price goes up. But our new member recruitment is showing us that the addition of an immediate reward is persuasive, especially in recessionary times.
The Economics
They’re pretty simple. To maintain the same level of cash flow, we need to grow our revenue 7-9 times. The reduced cash generated by shopping (we’re giving most of our cash back to you) is offset a lot by the reduced cash to recruit new members.
Indeed, the faster we grow, the more attractive the economic picture because of the probable savings on the costs of member recruitment. While faster growth will require more investment, faster growth is the kind of excitement potential investors like to have.
After November
We’re going to refine the mix between cash and stock back to provide even juicier rewards for some of our shareholder / members. As I’ve mentioned before, we’re considering going back to the capital markets for an investment round next year. Making sure we’re looking good will help fuel interest in investing in us.
De Plan! De Plan!
Sorry, the opportunity to channel Fantasy Island was too strong. Our stock price went up, and now is sorta stuck around $.18/share. The Plan is working, but it still needs your help. Getting our stock price over $.25/share helps our ability to raise more capital and excites shoppers. If you’ve been thinking of buying even 100 shares in the stock market, November would be a good month to do that! The price of lunch helps your company become stronger. (How do I invest in OTC stocks like RWRDP?)