TipSnaps

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.

Team Background

Sarah Barrick - Head of Marketing

Sarah serves as TipSnaps’ Head of Marketing.

Prior to joining the company, she was a marketing and strategy consultant for Preppy, a social media platform for “micro-influencers” and brands.

Before that, she was Marketing Director at Dukes Up Records, a company providing branding and social media management to aspiring musicians.

She began her career as a marketing and social media consultant for Goldish, a New York-based jewelry store.

Sarah earned a Bachelor’s degree from the University of South Florida.

Lyonel Douge - Founder & CEO

Lyonel began his career as a full-stack software developer for a mid-size media firm.

After two years as a developer, he switched his focus to product development of consumer technology.

He joined Sony Music (NYSE: SNE) and helped deliver the company’s first digital promotion distribution system. From there he worked for Viacom (NASDAQ: VIAB), where he managed a cross platform analytics and reporting tool.

Lyonel then moved on to Johnson & Johnson (NYSE: JNJ), where he was co-product owner of the company’s Consumer Drupal website platform. This platform launched and hosts more than 500 websites for Johnson & Johnson’s consumer-focused companies, including Listerine.com and Tylenol.com

Most recently, he developed and launched a mobile health and wellness app that earned more than 50,000 downloads.

He earned a degree in Computer Engineering from the University of Pittsburgh.

Eduard Sargyan - Fullstack Developer

Eduard works as a software developer.

In addition to this role, he is Software Development Team Lead for Intelligent Digital Technologies, a software company focused on the financial services industry.

Prior to these roles, he co-founded Innovative Advanced Solutions, an IT services company.

He earned a Bachelor’s degree, Master’s degree, and Ph.D. in Mathematics from Yerevan State University.

Artur Edilyan - Fullstack Developer

Artur has been with TipSnaps since July 2015.

During that time, he’s also worked as Technical Team Lead for Benivo, a company providing digital products to employees that are relocating for new positions.

Before joining TipSnaps, he was a software developer for Gap International, a management consulting company. He was also a senior software developer for Firmplace Corporation, an IT services company.

Artur began his career as a freelance web developer. He earned a Master’s degree from Yerevan State University.

Co-Investors