iCrumz earns more revenue per user than any other mass-market Internet platform company, including Google
While the boast in the headline above may sound incredible to you, it shocked us even more how much revenue per user the iCrumz platform started generating right from the get-go. At first we thought it was just a fluke from eager early adopters, but as we brought on more users and their use of iCrumz increased, the revenue per user values kept creeping up.
At iCrumz, our fundamental goal is to make it easier to go through iCrumz to get to wherever you're going. If we accomplish this and iCrumz is the easiest way to get to wherever you're going, then people will go through iCrumz to get to the websites they visit. When they go through iCrumz to visit a website to buy something, like Amazon or Expedia, then iCrumz gets credit for delivering that traffic and is rewarded with an affiliate commission from the e-commerce website.
Take Amazon for example, the largest e-commerce company in the world with $136 billion in annual revenue. Fully 40% of Amazon's revenues comes through affiliate partners like iCrumz. Virtually every major e-commerce site in the world offers an affiliate program. Affiliate commission programs are essential to the way that the Internet works and will never go away.
Commissions can range from a fraction of a percent to 50% or even more, but the typical commission is in the 5-10% range. Here is Amazon’s principal commission schedule. There are thousands of additional e-commerce sites offering affiliate programs, which we can integrate with directly or by going through major affiliate program aggregators like Commission Junction and Rakuten Affiliate Network.
To this point in time, our focus has been on Amazon, and as such all the revenue data presented is based entirely and solely on the revenues we’ve generated from Amazon. Integrating with the affiliate programs of every e-commerce company is not complex but at the same time not trivial.
With literally thousands of e-commerce companies offering affiliate programs, our plan is to integrate directly with the largest e-commerce companies initially and to work with the affiliate network aggregators for the remainder, sharing a portion of our affiliate revenue with the aggregators. Over time we will transition to direct tie-ins to more e-commerce companies, prioritized based on how much commerce our users as a whole are doing with each.
The following chart shows the revenue we’ve generated from Amazon alone.
The per-user revenue metrics illustrated above are, humbly, quite impressive.
In the chart above, the green area shows the total Amazon commissions earned by iCrumz over time. The pink line is our all-time running-average revenue earned per year per active daily iCrumz user. Over time, this value has gradually grown at a staggered pace to the point where the current value is well over $20 based on 600,000+ uses of iCrumz. We've been expecting this number to go down for months as the rate at which we're bringing on new users accelerates, but it just keeps going up.
The maroon line is the same measure as the pink line (average revenue earned per year per active daily iCrumz user), but instead of an all-time running-average value it is a 90-day moving-average. By measuring this value on a fixed-periodicity (90-days) that is continuously time-shifted, we can better detect anomalies and determine trends (going up/getting better, staying the same or getting worse).
Another useful way to look at our per-user revenue is on a daily basis. The all-time running-average revenue earned per day per active daily iCrumz user is more than 5.5¢. This value is perhaps more interesting because it can be used to truly understand iCrumz’ potential to generate revenue as a mass-market Internet platform. For every 1,000 people who use iCrumz each day, we earn $55 that day. At 1,000,000 daily users, that’s $55,000 per day or $20 million per year. When an app goes viral, it can go from zero to 1,000,000 users in as little as two weeks. Pinterest went from 400,000 to 12 million users in eight months.
The following is a comparison how how much iCrumz earns per active daily user per year compared to other mass-market internet platform companies.
Another way we look at our revenue is the average revenue per 1,000 uses of the platform, which we call CPMc Revenue. We track this also on all-time and time-shifted fixed-periodicity (90-days) bases.
Advertising rates for online (non-mobile) video ads are the most-expensive form of online advertising there is. These CPM rates typically range from $20 - $30.
iCrumz’ all-time average CPM rate of $50+ compares extremely favorably, to say the least, to conventional CPM rates. And without any advertising or anything else getting between the user and what they want to do.
One key reason why iCrumz’ CPM rates are so much higher is due to the method by which we earn revenue - affiliate commissions - which are a form of 'cost-per-action' (CPA) advertising, the most expensive method of charging for online sales. CPA advertising is so much more valuable because the advertiser pays only when the desired action is performed by the user (typically this means a purchase but could also be putting something in a shopping cart, registering for an account, etc) instead of the much lower-cost display advertising, where the advertiser pays to put an ad in front of a prospective customer with no assurance they will buy anything or take any further action.
Another big reason iCrumz’ CPM rates are so much higher is due to the type of tool that iCrumz is, where iCrumz is the launchpad to begin a new vector of Web activity. iCrumz is just the first step in that vector of activity, which usually includes a great many additional steps (i.e., visits to additional webpages on other, non-iCrumz websites).
So, for each vector of activity that includes many steps, iCrumz is always just a single step. If that vector of activity results in a purchase, then that’s one visit to iCrumz that results in a purchase. If that vector of activity does not result in a purchase, then iCrumz’ CPM rate is not diluted by all the additional steps in the vector that doe not result in a sale.
This is further evidenced by iCrumz astronomically high conversion rate. Conversion rate is the measure of what percentage of visits to an e-commerce site result in a purchase and therefor commission for iCrumz. The average conversion rate across the world is 2.95% and 3.00%. iCrumz' is an incredible 30%+. In other words more than one out of every four times iCrumz is used to visit Amazon, it results in a sale for Amazon and a commission for iCrumz.
The pie charts show the breakdown of our Amazon commissions by units as well as Dollars. Although the vast majority of commissions are smaller, with 82% of the number of commissions being less than $3 each, the majority of our revenues come from items with larger commissions, with 67% of the value of our commissions coming from commissions of $3 or more each.
To the extent we achieve our goal in making iCrumz so good, so useful, that our users always go through iCrumz to get to whatever website they want to visit, this explains why our revenue per user rate is so high - because virtually every time our users want to visit Amazon they go through iCrumz. That means that iCrumz earns an affiliate commission every time they buy something from Amazon, whereas with other sites, like Google, Facebook and Twitter, people get to Amazon via those sites only a portion of the time.
Say you use Google Chrome as your browser. Imagine if Google earned a commission every time you bought something online simply by virtue of the fact that you use Google Chrome. That's how iCrumz works. By definition, you go through your Web browser every time you visit a website. You have to. That's how you get to and view that site. If you always go through iCrumz to get to any website (because it's faster and easier to go through iCrumz), then we will earn an affiliate commission on virtually everything our users buy online. iCrumz won't replace your Web browser; it will just be the way that you get to websites, which will still be viewed automatically in your default Web browser.
Affiliate revenue is just our initial revenue stream. And just to be clear, we will NEVER sell our users' data to anyone for any reason. We will be asking for unprecedented access to our users' personal data in order to give them unprecedented personalization, and we can do this only if they are certain that we will respect the privacy of their information.
In doing this we are opened up to a myriad of fantastic additional revenue streams, including premium solutions for enterprises, sponsored starter bookmark collections personalized for each user based on their geography and personal demographics and premium added productivity functionality like password management (think Dashlane), note-taking (think Evernote) and passive cloud file storage (think Dropbox only better).