A Chicago-based Web site is paying consumers for something they may already be doing — spreading the word about concerts, products and everything else they enjoy.
FanFueled, the brainchild of 36-year-old Anderson Bell, invites fans of the company’s clients, which range from beer companies to indie artists, to share links of the clients on social media. Those who share the link get a commission if anyone clicks on the links and then purchases tickets or products. Say the person who clicks and buys shares the link with a friend. If the friend also clicks and buys, then a commission goes to the first two who shared the link, and so on.
“Everyone is their own mini-media network, and I saw an opportunity with performance based marketing,” Bell said.
It’s all about word-of-mouth, Bell explained. It’s really more about click-of-link. For example, one person might go to a concert and post a selfie on social media showing them having a blast — along with a link to buy tickets to the next concert. The hope is that the link becomes a massive chain, passed from one eager fan or consumer to the next — and, most importantly, that many of them buy.
“The bigger it gets,” Bell said, “the bigger everyone’s cut.”
Bell said the company has grown in approximately three years to around a dozen employees — and that it boasts about 150 clients including Anheuser-Busch and about 150,000 fans who share client links.
FanFueled clients pay a set-up free and a monthly fee to get their concerts, music, products or events listed on the site. The fee varies by client, said Will Flanagan, FanFueled’s head of marketing.
Company officials say they receive an affiliate commission for every item purchased through FanFueled and that the company allocates 50 percent of that commission to members — the fans and consumers who buy and share links. Company officials said commissions vary by product, but they would not provide an example of how much money a typical member can make.
The company emphasizes that companies and artists also benefit.
“By tracking, rewarding, and incentivizing fan passion,” the company says on its site, “FanFueled also helps brands, artists, events, teams, nonprofits and more spread the word, accelerate sales and increase loyalty.”
To get started, FanFueled said it received $2.5 million from private investors including former Chicago Bears cornerback Jerry Azumah.
FanFueled officials say the company generated just under $1 million and turned its first profit last year. They say they’re projecting much more revenue this year, with the help of campaigns they say they’re doing for Anheuser-Busch.
Still, the concept and the company have hurdles.
“It’s hard convincing everyone, especially in a more traditional space,” Flanagan said. “We talk to festivals and venues who have done marketing and sponsorship the same way for 50 years, and it could be difficult for them to try something new.
“Once they agree to the platform and get it going, they’re up for the second year, the third year, the fourth year. It’s easy to use and it works.”
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Kevin Earle, marketing director for Denver-based MCP Presents, said he has used FanFueled for three years to spread the word about its large-scale music festivals, concerts and special events. Through FanFueled, he said, MCP Presents has been able to touch fans outside of its core group.
“We have our direct network of fans that we message, but the issue is that those core group of fans are those that we don’t have to market to as hard because they’re our true fans,” Earle said. “The challenge has always been how you reach the people outside of our direct followers.”