STRIPMSG App Brief V1.1

Here are some extra requirements I’d like to clarify for the semi-MVP:

Additional Features:
– Stripe to take payments and also make payments to users (bank deposit)
– system to keep track of user credit balances in database
– affiliate and referral code system like in UBER (that pays in credits)
– follow airbnb style guide to make app beautiful (wireframes and designs provided)

We also need to be mindful of GST and TAX being in Australia, if we have US clients… are we charging in AUD or USD? How do we handle the currency issue? Will credit pricing change?

Fans buy credits, transfer those credits to celebs and then celebs cash these credits to get money, DEPOSIT is made to bank account details via stripe.

We can take a PROFIT by either:

  1. Charging more for credits than we pay for credits. This is how strip clubs do it (with fake dollar bills). This means changing the payout rate will affect everyone, and if there are any pending credits yet to be paid out, it will change the payout amount AFTER the work has been done to earn the credits, which would be a disaster. There will always be unpaid credits, unless we have a weekly payment schedule (why not run a daily cron that pays daily?… Doesn’t look as good in the bank)
  2. Taking more credits per character of response (5 Credits / 50 Chars) than we pay in credits to celebs (4 Credits / 50 Chars), meaning we would transfer the difference in credits to our own admin account, and we could therefore have our own economy and calculate our profit based on credit accounting, know how many credits we have to give out bonuses, and program to keep a certain number of credits handy and allow the admin dashboard to show us how many $ is safe to cash out and spend. I think this is an overall better idea because it allows us to assign a static value to a credit, and also programmatically move money around and manage the credit economy more easily. Changing rates of payment, or managing different rates of payment and currencies would also be much easier.
  3. Charging a 2.75% fee for each payout. This has all the benefits of #2 except it’s even simpler. All the money stays in the stripe account, but we pay out a little less. All the fees taken out, we’re left with total profit in stripe, which we cash out weekly. This has the benefit of being really cheap – rather than taking 20%, we take a tiny fee. But this will make IAP impossible because apple takes 30%. IAP must cost 30% more than if they buy directly off the site.
  4. We charge verified users a flat $25 monthly fee, unverified celebs can still chat except they don’t get paid. This still has the benefit of finding a serious and non-time-wasting demographic. Strippers find new clients from the app. Legit. But we also want them to be the ones promoting the app to their own clients… there’s some kind of facebook advertising demographic targeting we could use.

We need to legally not have to pay GST because we’re simply facilitating payment from the fan to the celeb, not charging and paying GST – in other words, the celeb should have the option of avoiding tax if they want to. GST and tax obligations should be on them. If we have to host the app overseas so be it. This way if we also get paid by the app in credits (as per #2) from the overall stripe balance, and the money doesn’t actually hit our bank accounts, this makes our accounting a LOT easier…

Also need to decide on payment schedule. Do they get paid once they hit a certain balance, or once a month? or weekly? or when they request a payout? How long do we keep their credits for? What if currency values change? What if they forget to request a payout?

Estimate projections at $1k revenue per active celeb per week. Then let’s say we get 20%. That’s $200 per active celeb. Let’s say we get like 30 of them. That’s $6,000 per week PROFIT. This is a medium case scenario, and you’ll have to hustle like a mutherfuk to get there… and it’s still only 300k per year, tradies make that much… but it’s a good springboard.

That’s why it’s a good idea to make it worldwide, (hence base in USD, and AUD too tho for springboard) and think of an advertising strategy that doesn’t rely on just you… you need to do some kind of ad campaign targeting opinion leaders… advertise on those affiliate network sites. ADVERTISE / SPONSOR AFFILIATE NETWORK SITES (that have all those opinion leaders on them).