Hoots Rewards

The Kickstart

What is the Kickstart?  I developed the Kickstart for several reasons.  I just was not happy with how long individual rewards grew.  So I spent well over a year working on ideas to solve this issue.  With tons of failures, I did not think I could make anything work.  Then one day I sat back and looked at how we all are programmed to see how a company profited.  

Let's look at how a business makes a profit. They sell a product for $100 and it costs them $50 to sell that item and end up with a profit of $50.  They will try to do this as often as possible.  This is what I would call front-end business.  So I started to look at making money in the back end.  The more I worked with this concept the better the projections of profits for the company became.  

Here is a quick chart to help explain the difference between front-end and back-end profits.  

 

Your company makes 10% profit and has 100 customers that spend $100 a month.  That creates a $ 1,000-a-month profit for every month.

 

My company has the same 100 customers, and I also get 10% profit. What I do differently, is I share the profit 50-50 with the customer.  The only thing that they have to do is spend the extra in my store.  Now if they spend the $100 plus the profit sharing each month, in just 2 years my profit would be $1535 a month.

Not only did you increase the profit of the business you also increased your customers purchasing power.  That's a win for all!  Now ask yourself this, what store do you think they will recommend to their friends and family?

Company's Benefit of the Kickstart

  1. Higher profits over time
  2. Retain customers
  3. Positive word of mouth
  4. Increase Capital 
  5. Eliminate over 50% of payroll

When I started to build the Kickstart it was all about the people.  What I found was many benefits for the company itself.  One of the greatest things is how it would build capital for the company. If we create a credit card company, we will need capital to give credit. True we will need some up front.  So instead of growing it with more investors, the Kickstart will build the capital the company will need to increase the capital we would need. Learning this helped me make it even better for the business and customers. 

Imagine a huge company Walmart or Amazon being able to cut their payroll in half.  Or what if we build a company with very little payroll? This is a concept that I have been working on recently and I see no reason it will not work.  The only thing is when I find investors and cofounder(s), we will have to sit down with some counsel and make sure it will work.  I am not an expert on the matter just an idea I came up with.

Stages of the Kickstart

I want to give a quick timeline of how the Kickstart will work for the customer.  Since this has never been done before, I have no idea if we will have thousands or millions of customers, this is my best educational guess.  This starts from the launch of Hoots Rewards

 

  1. First 3 months: The foundation of the Kickstart is built with little reward.
  2. 4 to 6 Months:  The customer will see an uptick in their rewards.  Depending on how much they spend it could be a few dollars a month or several hundred dollars.
  3. 7 months to a year.  You should see a nice increase in purchasing power in this timeline.  Depends upon your spending and loyalty.  Just say you have average spending habits, you could see around $100 a month of increased purchasing power.
  4. Once you reach a level of increased purchasing power the kickstart kicks out and you start to increase rewards from the bulk of Hoot rewards.  So your purchasing power will increase, at a slower rate, but still increase over time.