- What is Sweatcoin, and how does Sweatcoin work?
- How does Sweatcoin make money?
- Subscription Revenue (Sweatcoin Premium)
- Reserved SweatCo Ltd Tokens from SWEAT (Sweatcoin’s crypto token)
- Ad Revenue
- Marketplace Partnership Revenue
- Sweatcoin funding, net worth, and valuation
- Sweatcoin profit and revenue
- What is the Sweatcoin business and revenue model?
- Sweatcoin subsidiaries, acquisitions, and exits
How does Sweatcoin make money if it’s free and they pay you? Well, here is a complete, in depth, breakdown of their four (4) revenue streams, the different products and services they offer, the Sweatcoin business and revenue model, how much Sweatcoin makes per year, and how Sweatcoin works.
What is Sweatcoin, and how does Sweatcoin work?
Sweatcoin is a digital currency that is earned by users who participate in physical movement (walking or running).
Founded in 2015 by Anton Derlyatka, Egor Khmelev, and Oleg Fomenko, Sweatcoin now has more than 110+ million users that have collectively earned and created over 26.7 billion Sweatcoins and counting.
So, how does Sweatcoin work? To start earning Sweatcoins, all you need to do is download their app from the Apple App Store or Google Play store and create an account.
Once signed up, simply start walking or running to begin earning Sweatcoins. 1,000 steps = 1 Sweatcoin. Once you accumulate enough Sweatcoins you can use them spend them in their in-app marketplace, donate them to a cause, bid for items, or convert them to SWEAT tokens (only available in specific regions).
How does Sweatcoin make money?
According to Sweatcoin, Sweatcoin has more than 110 million users, 1,000’s of marketplace brands, and 600+ partners on its app. So how does Sweatcoin make money off of all these users, brands, and partners?
Below is a breakdown of how much money Sweatcoin makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 4 ways how Sweatcoin makes money in 2022
Sweatcoin has a revenue model that makes money in four (4) ways; through subscription revenue (Sweatcoin Premium), reserved SweatCo Ltd tokens from SWEAT (Sweatcoin’s crypto token) ad revenue, and marketplace partnership revenue.
#1. Subscription Revenue (Sweatcoin Premium)
One of the ways Sweatcoin makes money is through the subscription revenue they earn through Sweatcoin Premium.
Through Sweatcoin is free to use and earn for all users, Sweatcoin also offers a paid premium tier that offers even more perks and benefits that the freemium version does not such as earning 2x the Sweatcoins for every 1,000 steps taken, avoiding the daily cap of Sweatcoins earned, Premium Marketplace offers, and more – for a price. Which you can see below.
How much does a Sweatcoin Premium subscription cost?
- $4.99 per month, or
- $24.99 per year billed annually
Note: Of Sweatcoins’ 110+ million users, Sweatcoin has not disclosed how many of those have upgraded to a premium membership.
#2. Reserved SweatCo Ltd Tokens from SWEAT (Sweatcoin’s crypto token)
Sweatcoin also makes money from the SWEAT tokens they set aside for the Sweatcoin / Sweat Economy team.
According to the Sweat Economy Litepaper, they allocated 32.92% (22% is reserved for SweatCo Ltd and another 10.92% for the team and advisors.) Which you can see in the pie chart in the image below.
There is an uncapped supply of SWEAT to incentivize movement and has a circulating supply of 2,049,222,600 SWEAT.**
So of those 2,049,222,600 SWEAT, 32.92% of it is reserved for SweatCo Ltd, the team, and the advisors of Sweatcoin / Sweat Economy. If we do the math, 32.92% = 674,604,079.92 tokens. Which has a USD value of $19,017,089 USD ($19 million USD) when trading at $0.02819 per coin.**
** Current circulating supply and price per coin are based on the last time this section was updated: October 2022.
It’s unclear how many of these allocated SWEAT tokens SweatCo Ltd still has, how they are spending them, etc. We are just simply highlighting any form of revenue (earned or otherwise) that SweatCo Ltd may be generating.
#3. Ad Revenue
Sweatcoin also makes money from the in-app video ads they integrate within their platform.
Users can watch up to 3 video ads per day to earn Sweatcoins at random. These video ads look like they are third-party ads.
#4. Marketplace Partnership Revenue
In addition to subscription and ad revenue, Sweatcoin also makes money through the revenue they earn from brand partners paying Sweatcoin to be featured on its marketplace.
When Sweatcoin users earn Sweatcoins, they can use those coins to purchase things from their 1,000’s of brand partners who have available offerings in their in-app marketplace – such as digital or physical goods, and more.
For example, one of the offers in the marketplace is $15 from Acorns. So for 5 Sweatcoins, a Sweatcoins user can purchase this marketplace offering and then redeem their $15 of Acorns credit once they sign up for an Acorns account.
And for this marketplace exposure to Sweatcoin’s 110+ million users, brand partners pay Sweatcoin to get onto their marketplace (which leads to sales and signups). Although Sweatcoin does not reveal how much it costs these brands to get onto their marketplace.
Sweatcoin funding, net worth, and valuation
According to Sweatcoin’s Crunchbase profile, Sweatcoin has raised $13.6 million over 4 rounds.
Sweatcoin profit and revenue
Sweatcoin has not released any official reports in regard to company earnings.
Note: Because SweatCo Ltd is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.
What is the Sweatcoin business and revenue model?
Sweatcoin makes money through a few revenue models that they combine within their company, they are:
- Freemium (upselling) business model
- Subscription business model
- Transaction based business model
- Advertising based revenue model
- Business to business (B2B) business model
- B2B2C (partnerships) business model
Sweatcoin subsidiaries, acquisitions, and exits
To date, Sweatcoin has not made any acquisitions, investments, or exits.