TipSnaps is a social media platform. It enables content creators to sell merchandise and exclusive content directly to their followers.
In the social media industry, content creators are known as “influencers.” These include comedians, models, fitness trainers, makeup artists, and musicians.
Influencers often use social media platforms like Instagram and Snapchat to amass groups of followers.
The problem is, these platforms don’t allow influencers to make money from the content they create. All monetization must happen outside of the platform, typically through brand partnerships.
Meanwhile, many social media influencers don’t have the know-how or resources to effectively monetize their accounts.
According to a 2018 study from Mention.com, of the estimated 900 million Instagram accounts, roughly 121 million are considered “influencers,” and have between 10,000 and 1 million followers. These accounts tend to be largely un-monetized.
TipSnaps enables these influencers to monetize their accounts. Anyone with more than 1,000 followers can use TipSnaps to sell exclusive content to fans.
To do this, influencers — known on TipSnaps as “Makers” — build relationships and provide exclusive experiences to their subscribers, called “Tippers.”
Example experiences could include a workout routine from a fitness instructor, a makeup tutorial from a beauty artist, or a guitar lesson by an aspiring musician.
In exchange for the content, Makers can receive funding directly from Tippers either on a recurring basis, or through one-time “Tips.”
TipSnaps charges a commission of 15% to 25% for each transaction. The Maker retains the remaining 75% to 85%. After payment processing fees, TipSnaps earns 10% to 15% margins for each transaction.
It costs TipSnaps $9 to acquire each Maker to its platform. And according to the company, top Makers can earn more than $10,000 per month. Using that figure, TipSnaps could potentially earn between $1,500 and $2,500 per month from a single Maker.
TipSnaps launched its platform in May 2017. Today it has 279,000 users and is achieving a 30% month-over-month user growth rate.
Tippers on the platform have spent $1.2 million, and TipSnaps has generated $232,000 in revenue from these transactions. The company is profitable as of 2018.
With funds raised, TipSnaps will focus on acquiring more users, developing its platform, and hiring additional team members. The company will also explore offering brand partnerships to Makers, which would create an additional revenue source.