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Advice on our revenue model

Hey!,

Currently, we're running dogfluence.com for about 2 years. We have 1600+ registered users and 110+. brands (5 paying brands).

Some successful campaigns:

https://dogfluence.com/campaigns/spleash/spleash-hydration-on-the-go
https://dogfluence.com/campaigns/snuffelbox/february-theme

In 2 or 3 months we're going to launch a new feature where dogfluencers can send proposals to brands. The dogfluencer gets 3 products/or money from the brand and must for example share it on Instagram or submit some media content.

The thing we're struggling with is our revenue model.

Method 1:

Let's say a dogfluencer and a brand agree on $500 for a Instagram post. We'll then take 8 - 10 % commission.

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Pros: 100% alignment and perfect segmentation in terms of pricing;
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Cons: Commission too high (therefore deplatform), income uncertainty (no fixed subscriptions).

Method 2:

Before a dogfluencer can even send a proposal they have to subscribe to a subscription $15 p/m. Then they can send an unlimited amount of proposals.

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Pros: Once they're in, dogfluencers will create a lot of proposals to capitalize on their subscription;
- Cons: Less alignment/segmentation inherent to pricing. Potentially less profitable. Much higher bar to entry (and less learning/use cases because of that).

What is your take on both models? Any advice?

Thanks ✌️



I always like pricing models that are connected to the value they create (i.e. capture a share of the value created). Therefore my preference would be toward Method 1. That way you (the platform) are incentivised to create value for the users of the platform.

Curious, why do you think 8-10% commission is high when a lot of platforms are charging much more?

Having been an influencer myself in the somewhat early days of Instagram (2014-2018) I would prefer option 1. I'm also curious why you would think the commission is too high.

Yeah it's not that high indeed. We're currently doing some tests for this.

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