Which is all well and good for holders – but 211k NFTs sold/gifted to a group of 42k members, all for $172.5k in royalty revenue (made over 7 months) for Starbucks??
That is PEANUTS (less than peanuts) for a $119B company with a customer base of 100M people.
So, how much room is there to grow here?
There’s no way Starbucks is going to be able to get all 100M of its customers to join the Odyssey program…but let’s pretend it’s possible and work our way up from where we’re at today.
Right now, 0.042% of Starbucks customers are Odyssey members.
The program has been running for just over half a year and made $172.5k – so let’s call that $345k per year.
Now, let’s see what happens as we start to bump the member number up…
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0.042% of customer base = $345k p/y
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1% of customer base = $8.21M p/y
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5% of customer base = $41M p/y
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10% of customer base = $82.14M p/y
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20% of customer base = $164.28M p/y
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40% of customer base = $328.57M p/y
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80% of customer base = $657.14M p/y
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100% of customer base = $788.57M p/y
Is this math correct? Nope! It’s way off. It assumes that the trading volume, along with the supply and demand of/for these NFTs will scale smoothly.
It won’t. It’s wonky as hell.
BUT! It does give you an idea of the benefits that NFT reward programs offer legacy brands like Starbucks 👇
The Web2 method = run a rewards program → sell more coffee.
The Web3 method = run an NFT rewards program → make recurring revenue from secondary NFT sales → sell more coffee.
Niiiice!
