Putting it all Together
Network Effect
Acquisition Strategy
Merchants
Users
Communication Methodology
Putting it All Together
So, we have P2P, mPOS, a financial token (“money printer”) and a merchant business intelligent / communications platform (B.I./Coms). How do we connect it all to make a seamless platform that can produce a must-have product for users and merchants? It’s hard to walk through this one on paper, but let’s try.
Every payment made using Honey creates a new connection for the SMB and the user; this is the LinkedIn reference above. If users and merchants want to create a larger network for themselves, they simply accept or use Honey to pay for a transaction. Giving free payments reduces merchant sign-up friction and frees up money to spend on revenue generation.
It all starts with effective P2P and free payments. P2P, as we said, creates network mass. Free payments and easy mPOS drive merchant adoption. Free payments keep deals flowing. Flowing deals keep active users snacking. Active users consume deals. Consumed deals equates to increased merchant revenue. The cycle continues. Financial tokens help create network mass (the ability to accept money without the app) and our B.I./Coms platform supports the ecosystem. We have spent thousands of hours thinking this piece through, and it fits like a puzzle.
Network Effect
We are asked this question often enough that we felt this topic should have its own section. We have some fancy graphs and a lengthy marketing plan to explain our strategy, but contrary to what people want to hear, there is not a magic bullet (ask Facebook and countless others). Having said that we have a ton powder in our arsenal designed specifically to grow and ensure a strong network. Our plan is innovative, fun and proven effective. Ask us about it!
Acquisition Strategy
Merchants: We don’t intend to divulge our entire strategy here, but we can firmly declare that we will not use merchant acquirers. We will utilize a few old-fashioned marketing tactics to announce our free payment strategy and work directly with merchant trade organizations and community leaders to educate merchants. There are many ways to get the word out, and these are just two. We have proven that our merchant value proposition is easy to understand and articulate and believe our users will be our biggest supporters, so we have built a plan to pay them to acquire merchants.
Users: Again, we won’t reveal our entire strategy here, but we will give our reader a taste of what’s to come. Deals and promotions from community merchants is a big draw for our target market, as is communicating with them. A large market is not being served by Venmo & Zelle, and we believe our unique P2P addresses this market. We plan to target college campuses with very specific use-cases and we have a verbal agreement to launch with several large summer, fall and winter music festivals and markets to be their exclusive electronic payment provider. Ask us more about these!
Communication Methodology
We learned long ago that the wrong platforms are ones that are crowded (email) and the ones that are invasive (text messaging). Snacking is when users constantly check in on an app to look for new messages or updates. This has become habitual for many mobile users, so we believe in-app push messaging provides for good snacking. In-app messages are not invasive, but not passive either; in fact, the right messaging, deals and promotions create possible FOMO (Fear of Missing Out) and lots of snacking!
We believe users should control their messaging content and what data is shared with whom to build and control their experience.
Next Section: Network Effect
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