That’s all well and good for holders – but 211,000 NFTs sold/gifted to a group of 42,000 members, all for $172.5,000 in royalty income (made over 7 months) for Starbucks??
That’s PEANUTS (fewer than peanuts) for a $119 billion company with a customer base of 100 million people.
So, how much room is there to grow here?
There’s no way Starbucks can get all 100 million customers to join the Odyssey program… but let’s pretend it is possible and work our way up from where we are now.
Currently, 0.042% of Starbucks customers are Odyssey members.
The program has now been running for a little over half a year and made $172.5k – so let’s call that $345k per year.
Now, let’s see what happens when we start increasing the number of members…
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0.042% of the customer base = $345kp/yr
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1% of the customer base = $8.21 million p/y
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5% of the customer base = $41 million p/y
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10% of the customer base = $82.14 million per year
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20% of the customer base = $164.28 million p/y
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40% of the customer base = $328.57 million per year
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80% of the customer base = $657.14 million p/y
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100% of the customer base = $788.57 million per year
Is this math correct? No! It is far away. It assumes that trading volume, along with the supply and demand of/for these NFTs, will scale smoothly.
It will not. It’s crazy as hell.
BUT! It does give you an idea of the benefits that NFT rewards programs offer older brands like Starbucks ????
The Web2 method = run a rewards program → sell more coffee.
The Web3 method = run an NFT rewards program → generate recurring revenue from secondary NFT sales → sell more coffee.
Nice!