WHAT IS REWARDS.COM?

A Loyalty Marketplace where shoppers earn and redeem brand agnostic points on over 100,000,000 products, services, restaurants, travel and more.

MARKET SIZE

$291 billion ecommerce industry in the US. (*IBIS World)

PROBLEMS IN THE MARKET

#1 – Customers average 29 loyalty programs, with limited redemption options, resulting in over $100B in unused points and cash-back value.

#2 –
Shoppers are flocking online. Brick and Mortar retailers are shutting down at an alarming rate. Credit Suisse predicts 8600 will close in 2017.

SOLUTION

A brand-agnostic Loyalty Marketplace where shoppers can purchase anything, and earn and easily redeem, flexible points on everyday goods and services, including electronics, department stores, travel, office supplies, gift cards, and home goods.

TRACTION

  • 50,000 Members
  • 10,000 Active Users
  • 7,000 Coalition Partners
  • $538k in POC revenue
  • $8.9m in partner sales
  • 100,000,000 products, services, restaurants, etc (SKUs)
  • $0.00 CAC. Yes, zero.
    • The above revenue is solely from natural and type-in traffic to the domain name. We can describe more on a call.
  • 17 million auto-enrolled customer database for Beta launch
  • 18 mo. runway
  • Clean Cap Table

COMPETITORS

Plenti.com is an AMEX-only service that has limited qualifying purchases and limited redeeming options and does not aggregate and consolidate brand agnostic points like Rewards.com.  As such, it is experiencing both vendor and customer service issues.

Ebates.com is a cash-back model. Although hugely successful they struggle with shopper engagement and retaining shoppers year-after-year. Churn is high and engagement is low.

RetailMeNot.com is an coupon aggregator that distributes over 500,000 coupons from over 50,000 stores in retail categories including accessories, automotive, baby products, beauty products, clothing, electronics, furniture, health, home & garden, jewelry, pets, photography, toys and travel.

COMPETITIVE ADVANTAGE

Rewards.com is the first loyalty marketplace to use brand agnostic points. Being brand agnostic means we have partnership potential with virtually any company in the world.

  • We have IP
  • Signed strategic partnerships
  • Mature and proven technology platform is live
  • Seasoned executives from the loyalty industry

WHY NOW?

Brick and Mortar retailers are in a tailspin. Shoppers have become used to shopping online and are rapidly adopting digital marketplaces. Loyalty Marketplaces are the next evolution.

These coalitions are highly successful in other countries.  The timing is right for Rewards.com because it is credit card, bank, and retailer neutral, giving it an edge in forming partnerships with coalition members.

BUSINESS MODEL

Breakage and float are two strategic parts of gift cards and point redemptions. The value of un-redeemed points and unused gift cards has significant value. Rewards.com sells points as part of their service offering to marketplace members, and breakage has accrued value. Ultimately Rewards wins if a shopper redeems their point because essentially they just made another purchase that is subject to retailer commission. In addition, revenue is derived from:

  • Merchants pay a commission of 3% to 75% of the total sale to Rewards.com for customers and provide special offers, coupons, and discounts for driving high sales volumes to their online storefronts.
  • Rewards.com keeps 40% – 60% of the commission and passes a portion on to the customer.
  • Revenue from “Featured Advertising” and product placement
  • Revenue from Email promotions to the Rewards.com customer database

TECHNOLOGY

  • Scalable software architecture with the flexibility to dynamically target customers and feature partners.
  • Easy for customers to use and gain valuable shopping experiences with the incentives for the masses.

MARKETING PLAN

  1. 105,000 active users to reach positive Net income
  2. 180,000 active users to reach self-sustaining revenue

Marketing tactics

  1. Email marketing to the initial 17m customer database.
  2. Digital marketing in the form of strong customer attribution, followed by content marketing, Adwords, Social media, influencer outreach, public relations,
  3. Digital retargeting will help drive and capture relevant traffic.
  4. SEO of more than 1mm SKUs, product pages, coupons and deals. Rewards.com organic traffic and SEO enables us to better attract new, qualified visitors through search. We are in front of shoppers at the right time, with the right content, within the right context.
  5. com’s own Ad platform will be a focus for targeting new shoppers and increasing engagement from existing ones.
  6. Partnership cross-promos with our coalition partners who are will cross-promote Rewards.com
    • Car Service – 100m members
    • Hotel Chain – 80m members
    • Loans – 30m members
    • Retail– 20m members
    • Bank – 20m members
    • Services and Charities – 20m members

It’s all about relevance. Making relevant retailers, offers, and promotions to the right shopper is key to engagement. We have a relentlessly focus on customer experience by offering our customers low prices, a variety of quality, convenience, and a wide selection of retailers and products through the device of their choice.

FOUNDING TEAM

Rewards.com was spun out of a 15-year old loyalty database marketing company (DBG Loyalty located in Dallas) who is a leading innovator in loyalty and rewards marketing programs for Bank of America, Sony, Caesars Entertainment, General Motors, Nissan, Toronto Dominion Bank, American Airlines, American Express, Marriott and more, equating to over 30 million customers.

The startup includes the executive leadership from the parent company.

Todd Rowan, CEO

Todd is the technical founder and CEO. His vast experience encompasses over 20 years in the loyalty shopping Industry. He architected the loyalty programs, software platform and marketing plans for some of the worlds most recognized business’ including Bank of America, American Airlines, Netflix, Bose, and American Express.

Linda Butcher, Chief Business Development Officer

Linda has vast experience sales, marketing, and partnership development in many different industries including Pharmaceuticals, Art, Consumer Goods, and Software. She has developed significant partnerships in multiple industries with Monster.com, Groupon, Uber, Sanofi Aventis, Tenet and Air Miles totaling more than $200 million in revenue.  One of her biggest accomplishments was starting a healthcare program that added $35 million to her company’s bottom line through direct consumer marketing, social media, local community awareness, print ads, TV commercials, Billboards, and sponsorships.

THE ASK

Friends and Family

  • $750k (raised 2016)

Series Seed (Convertible Note)

  • $1.5M goal
    • Escrow unlocked at $1M
  • $150k increments

Use of funds

  • Digital marketing budget to target the Fall run-up to the 2017 holidays
    • 105,000 active users to reach positive Net income
    • 180,000 active users to reach self-sustaining revenue
  • Mobile development

RECENT NEWS

Recent offers to purchase domain name

  • Party 1
    • $2.1M
  • Party 2
    • $3M

Recent offers to purchase domain name and platform

  • Party 3
    • $4M
  • Party 4
    • $4M

Currently fielding interest from:

  • Salesforce
  • Amex
  • Ebates
  • ADS