- What is Rarible, and how does Rarible work?
- How does Rarible make money?
- Service Fees (Commission Fees)
- Rarible’s Subsidiaries, Acquisitions, and Exits
- Rarible’s profit and revenue
- What is the Rarible business and revenue model?
- Rarible’s funding and valuation
How does Rarible make money if it’s free to use? Here is a full, in-depth, breakdown of their main revenue stream, as well as the Rarible business model, their profit and revenue, and how Rarible works.
What is Rarible, and how does Rarible work?
Rarible is a peer to peer NFT marketplace for discovering, collecting, and selling non-fungible tokens (NFTs).
Founded in 2020 by Alexei Falin, Alex Salnikov, and Ilya Komolkin, Rarible has handled more than 1.5 million transactions since its launch according to on-chain data, making it one of the top NFT marketplaces in its space.
How Rarible works is: Users can browse the Rarible marketplace without creating a profile account. But, if users (buyers and sellers) wish to interact with the marketplace, such as placing bids or minting NFTs, they’ll need to create and connect to a Web3 wallet such as MetaMask or Coinbase Wallet through their browser. You can read more about that, here.
Some of Rarible’s competitors include OpenSea, LooksRare, Foundation, and other peer to peer NFT marketplaces.
How does Rarible make money?
The Rarible marketplace facilitated over 846 thousand NFT transactions totaling more than $109 million in transactional volume in 2021, as reported by dappradar’s raw on-chain data research. So how does Rarible make money off of all that transactional volume?
Below is a breakdown of how much money Rarible makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here is how Rarible makes money (in 2022):
Rarible has a revenue model that makes money in just one (1) way – service fees.
#1. Service Fees (Commission Fees)
According to Rarible, the company makes all of its money through service fees by collecting a 5 percent fee from every sale made on its marketplace – taking a 2.5 percent cut from, both, the sellers and buyers.
As noted above, it was found that Rarible handled over $109 million of transactional volume in 2021. Of which, Rarible takes a percentage from each of those transactions.
- 5% of the transaction total (2.5% from buyer and 2.5% from seller)
Note: Rarible takes a 2.5 percent cut from, both, buyers and sellers. Whereas on OpenSea, the largest NFT marketplace, they collect a 2.5 percent fee from the sellers only.
Rarible’s Subsidiaries, Acquisitions, and Exits
To date, Rarible, Inc. has made a total of 2 investments.
Rarible’s profit and revenue
Rarible has not released any official revenue numbers for how the company performed in 2021.
But, if we take Rarible’s total reported sales volume of $109 million and divide that by their 5 percent commission fee, we can estimate Rarible brought in at least $5.45 million of revenue in 2021.
Note: Because Rarible, Inc. is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.
What is the Rarible business and revenue model?
Rarible makes money through a few revenue models that they combine within their company, they are:
- Commission based business model
- Marketplace business model
Rarible’s funding and valuation
According to Rarible’s Crunchbase profile, Rarible has raised $16 million over 3 rounds.