Loot charges brands a volume-based markup on user rewards
Nicholas Haas · EP 309: Ad Tech Company Hits $500k in 2015 Revenue with 26 Year Old At Helm · Jun 21, 2016 · at 5:51
Nicholas Haas, founder of ad-tech platform Loot, explains the company's unit economics and pricing structure to Nathan Latka.
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“We you know, for instance, the brand we worked with was charging 50 cents or rewarding somebody with 50 cents. We would typically charge them a multiple of that depending on the volume. So if we had, you know, a thousand offers which is, would be a low amount, then they would probably pay two to three X. What are the amounts they're paying to the users to us? If they had a larger volume say a 100,000 offers, it would be a much lower quantity. It could be a multiple of like one and a half times. So they'd pay 75 cents. Additionally, on top of 50 cents, so a dollar 25 per, per action and engagement.”
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