Status: IMPLICIT AND UNEXPLAINED
This is the deck’s most significant weakness. The business model is never explicitly stated, but several revenue opportunities are implied:
Implied Revenue Streams
1. Sponsored Our Stories (Slides 8-9)
- Brands/events can sponsor location-based Stories
- Example: EDC Live, Rio Live (World Cup)
- Likely pricing: CPM or flat fee per event
- Status: Not explicitly monetized in deck
2. Promo Codes & Direct Response (Slide 11, 13)
- Brands embed promo codes in Stories (e.g., GrubHub “USE CODE: SLICE”)
- Potential revenue: Affiliate commission or revenue share
- Status: Shown as working but no revenue model explained
3. Brand Accounts & Organic Reach (Slides 10-14)
- Brands create free accounts and build followers organically
- Potential monetization: Premium features, analytics, or paid reach
- Status: Shown as free in deck; no paid features mentioned
4. Advertising (Not Mentioned)
- No mention of display ads, sponsored content, or ad network
- Suggests advertising was not yet part of the business model in July 2014
- Note: Snapchat later introduced Discover (2015) and Sponsored Filters/Lenses (2015+)
Unit Economics: NOT PROVIDED
The deck provides zero information on:
- Revenue per brand
- Customer acquisition cost (CAC)
- Lifetime value (LTV)
- Pricing tiers or models
- Revenue growth rate
- Profitability or path to profitability
Monetization Philosophy
The deck emphasizes experimentation and authenticity over explicit monetization:
- “We recommend experimentation. Learn what it’s like to create, what Stories fans find most compelling, and ultimately, what your Snapchat voice is.” (Slide 10)
- This suggests Snapchat was still figuring out how to monetize without compromising the user experience