Details

Last Funding Type

Seed

Last Funding Money Raised

$750K

Industries

E-Commerce,Retail

Founded date

Jan 5, 2015

Number Of Employee

1 - 10

Operating Status

Active

INVESTOR INFO HERE:
http://DallasStartups.com/portfolio/rewards-com-startup-with-a-head-start/

What is Rewards.com?
Rewards.com is a brand agnostic loyalty point’s clearinghouse that consolidates all your loyalty programs into one easy efficient marketplace where customers shop, earn points, redeem points, and take advantage of discounts.

Rewards.com was spun off from DBG Loyalty in Dallas, a leading innovator in loyalty and rewards marketing programs for Bank of America, Sony, Caesars Entertainment, General Motors, Nissan, Toronto Dominion Bank, American Airlines, Marriott and more, equating to over 30 million customers.

The startup includes the executive leadership and mature platform from the parent company. The platform is solid and proven, with 10k registered users, over 7000 coalition merchants including Jet.com, Amazon.com, Walmart.com, Uber, Quicken Loans, Smithsonian, Hyatt, Susan G. Komen, and many more.

Revenue is generated each time someone makes a purchase on a merchant site. The merchants pay a commission of 3% to 75% of the total sale to Rewards.com. They also 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.

Rewards.com has a significant advantage because it is brand agnostic means it has partnerships and partnership potential with thousands of companies. Being an agnostic loyalty point’s coalition that consolidates loyalty programs into one easy efficient shopping site, is a market first.

URL:
www.Rewards.com

Industry:
Loyalty Points Clearinghouse

What:
Consolidates all your loyalty programs into one easy and efficient marketplace

Beta Launch:
June 2017

Current Situation:
Platform is built and already has 10k active users; over 7000 coalition merchants including Jet.com, Amazon.com, Walmart.com, Uber, Quicken Loans, Smithsonian, CBS, Hyatt, Susan G. Komen, and more.

PROBLEM IN THE MARKET
Customers have an average of 29 loyalty programs per. Redeeming is a nightmare.
Customers are tired of too many programs and not enough reward.

SOLUTION
Rewards.com is a brand agnostic loyalty points clearing house that consolidates all your loyalty programs into one easy and efficient clearinghouse marketplace where customers shop, earn points, redeem points, and take advantage of discounts.
The company 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, Marriott and more, equating to over 30 million customers.

WHY NOW?
Coalitions are highly successful in other countries and have been for many years. The timing is right for the United States and Rewards.com is the right opportunity because it is credit card, bank, and retailer neutral, giving it an edge in forming partnerships with coalition members.

MARKET SIZE
$291 billion ecommerce industry in the US. (*IBIS World)
The Rewards.com Marketplace literally allows a shopper to purchase anything. Electronics, Department Stores, Travel, Office Supplies, Gift Cards, and Home goods are among the most popular categories. Shoppers of all ages, races, and incomes have increasingly more expectations of lower prices combined with a higher value. Rewards Marketplace is the solution for both, giving the Rewards Marketplace an edge over singular businesses that depend on either a low-cost or high-value strategies. The target market includes shoppers who are making purchases online or through a mobile device or tablet, as well as at in-store. Our goal is to identify profitable customers and their purchase patterns, and reward desirable behavior accordingly. Truly giving insight and understanding to behavior loyalty.

BUSINESS MODEL
Breakage and float are two strategic parts of gift cards and point redemptions. The value of unredeemed 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.

COMPETITION
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.

COMPETITIVE ADVANTAGE
Rewards.com has a significant advantage because it is brand agnostic means it has partnerships and partnership potential with thousands of companies. Being an agnostic loyalty point’s coalition that consolidates loyalty programs into one easy efficient shopping site is a market first.
• Mature and proven technology platform is live
• Seasoned executives who innovated loyalty programs for American Airlines, American Express, IHG and more.
• Estimated customer base 30mm
• Signed strategic partnerships

MARKETING PLAN
With a $3m raise, $2m will be spent reaching two goals.
• The first goal is to reach 105k active subscribers to reach $7m in revenue.
• The second goal is to reach 180k active subscribers to reach critical mass.

FUNDRAISING
2016 – Raised $750,000 in Friends and Family
2017 – Raising $3m on a $12m valuation, Class A shares, with a 5% Dividend

USE OF FUNDS
Mainly digital marketing in the form of extensive retargeting, content marketing, PPC, social media influencer outreach, email marketing, Public Relations, etc.

FOUNDING TEAM
Todd Rowan, CEO
Todd is the 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.
Todd’s most valuable asset is being able to architect programs which facilitate engagement with direct consumers. Some of his most recognized creative credits include The “Addit Up” program by Bank of America and “Buy, Share, Gift” by American Airlines. Todd’s creative vision provided direction to the marketing team which resulted in 2 of the most successful campaigns ever ran by each company. Todd’s ability to blend marketing message with site design is the winning combination for engagement.

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.
One of her biggest accomplishments was starting a healthcare program that added $35 million to her company’s bottom line. Creating the program from scratch her efforts included all direct consumer marketing through social media, local community awareness, print ads, TV commercials, Billboards, and sponsorships. Some of the more notable campaigns were “What keeps you up at Night?” Which was an anti snore campaign for sleep apnea suffers.
Linda has developed significant partnerships in multiple industries with Monster.com, Groupon, Uber, Sanofi Aventis, Tenet, Air miles totaling more than $200 million in revenue.