TipToken
Chartered accountant Jamie Waldegrave and Chris Huey started
TipToken in 2010. Riding the crest of the group-buying wave, the
pair knew that they had to tweak the generic model to survive. To
this end, TipToken only takes a small commission on sales, there
are no up-front fees, the deals always promote upselling and
customer retention and - most importantly for the small businesses
it serves - TipToken pays more promptly than any other group-buying
service in the UK. From an initial investment of £11,000, the
business now pulls in £4,000 every month with margins at 25%.
TipToken smashes the cost per acquisition rates of its biggest
competitor, Groupon. The US firm's recent IPO filing reveals that
the group-buying giant spends £6.60 for every subscriber it adds to
the database. In contrast, TipToken spends only 34p. Costs are
further reduced by only employing freelancers and interns.
- Focus on prompt payment to bring in new customers
- Low cost per subscriber acquisition
- Accountant founders keep a weather eye on the numbers
Learn more about TipToken