Foursquare has long been the poster child for loads of growth without any significant revenue. The company has over 25m users on its platform, but has yet to figured out a way to monetize the base. With its recent $40M cash injection, it is betting on the 1.5m small businesses that currently reside on the platform. With the latest update, small businesses will be able to create and push their own deals to customers based on how many times that customer has actually been to their store. They are going to charge the small business a different amount based on how many customers respond to the ad, utilizing the check-in data in a way none of the other competitors can (google offers, groupon, etc.).
Will this new, more results driven form of charging local businesses work? The jury is still out, but for Foursquare they better hope it does, because if they don't start earning revenue soon I am not sure they will be able to get another cash infusion so easily..
http://techcrunch.com/2013/10/14/with-an-eye-to-more-revenue-foursquare-opens-its-ads-platform-to-all-small-businesses/
Will this new, more results driven form of charging local businesses work? The jury is still out, but for Foursquare they better hope it does, because if they don't start earning revenue soon I am not sure they will be able to get another cash infusion so easily..
http://techcrunch.com/2013/10/14/with-an-eye-to-more-revenue-foursquare-opens-its-ads-platform-to-all-small-businesses/
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