Stickk Question Answers

Q1. How does Stick K help customers achieve their goals? Describe the key features of achieving the goal.

Stick K makes good use of behavioral economics to make a "commitment contract" with the customer, which is the monetary penalties for default, allowing the customer to comply with the contract and carry out a four-stage decision-making process → target bets → designated referee → seeking support.

Its features to help customers achieve their goals are as follows:

1. Additional costs for the target: simply to replace the award is to punish! Consumers and the stick K signed a contract to increase the penalty terms, if completed on time, do not reward and punishment, returned to "bet", once the default, you have to pay the cost.

2. Supervision mechanism: to find a friend can play the black face, which people monitor their own goals. In general, in order not to lose face in front of relatives and friends, will try to advance to the goal.

3. Benefit mechanism: the designated referee if the contract due to breach of contract and receive money, more motivated to track your situation.

4. Supporters: Tell their experience and commitment contract, invite supporters (such as fitness coaches or nutritionists), in the contract period to give professional guidance and advice.

Donate: Relatives / Charities (positive, similar rewards) vs. Anti-charity groups (negative, similar penalties), showing that about 50% chose to donate to anti-charity groups → do not want to give money to hate their object, Money donated to "anti-charity", can form a stronger binding force.

6. Mass Mechanism: Announcement of the content of their own contract, in order to defend their reputation have a greater motivation to complete.

Q2. How does stick K make money? Does the company have a valuable business model? What is the difference with the B2B model?

Stick K through the "commitment contract", strengths in B2C mode of operation, allowing customers to choose the amount of bets and donations, and collect fees, is the stick K most valuable mode of making money.

However, stick K is not entirely only individual users, operating on the track after the commission also accepted the establishment of enterprise users own brand platform, the difference between the two are as follows:

1. B2C charging fee: the use of commitment to select the bet contract and the donor object to the premise of a legitimate game with other competitors, the source of income for advertisers or selling goods is very different, stick K to customers pay the gambling fee is a large income . If the election of charities is not charged, if the election of charitable organizations, 19.5% of bets, if elected anti-charitable organizations are charged 29.5% (to June 2012 total bet amount of about 17 million yuan, anti-charity about 50% The other about 25%).

2.B2B to charge a fixed fee (the majority of non-stake): to help corporate customers to build their own brand platform to charge a fixed starting fee (2 to 5 million), according to the number of users per month from 1 to 20,000 yuan monthly fee ).

Q3. What do you think is the main obstacle to stick K's success?

1. The initial fear of lack of sufficient revenue and support members of the company's operations.

2. The image is not clear enough: the target customer base is not clear enough, the public fear of fraud or suction gold group, the company does not trust.

3. Many competitors, no technical barriers: If the contract is simply to provide a commitment to the business model, the entry threshold is low, easily copied by competitors.

4. Enterprise mission and business model conflict: the business model is constructed in the user fails, the collection of fees. So the more the failure of the user, the company more money; and the more successful the user, the company the lower the profit. In order to lose weight contracts, for example, the company in the end want to sign people lose weight success or failure? Want to pursue profit, it will conflict with the social value.

5. B2B profit time to stretch: and enterprise customers to develop their own brand platform for the high degree of difficulty, and the longer duration of the company more unfavorable.

Q4. How would you suggest how John would go on with his business? Should he focus on the B2C business model, or would he build a B2B model? Why?

First, the 2012 earnings analysis: