- What is Truebill, and how does Truebill work?
- How does Truebill make money?
- Premium Subscription
- Bill Negotiation (Success Fees)
- Tips from Pay Advance
- Truebill’s profit and revenue
- What is the Truebill business and revenue model?
- Truebill’s funding and valuation
How does Truebill make money if it’s free to use? Here is a full, in-depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the Truebill business model, their profit and revenue, and how Truebill works.
What is Truebill, and how does Truebill work?
Truebill is a personal finance app that allows users to keep track of their finances by canceling subscriptions, managing bills, and more.
How Truebill works is: Once a user signs up for an account, Truebill will ask the user to link their checkings and savings accounts so Truebill can scan over their expenses. According to Truebill, users who link two or more accounts save an average of $268 more.
Some of Truebill’s competitors include Mint and other budget tracker apps.
How does Truebill make money?
According to Truebill’s homepage, the company says to have over 2 million registered users. So how does Truebill make money off of all those users if the service they offer is free?
Below is a breakdown of how much money Truebill makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 3 ways of how Truebill makes money (in 2021):
Truebill has a revenue model that makes money in three (3) ways – premium subscriptions, bill negotiation fees, and tips from Truebill’s Pay Advance service.
#1. Premium Subscription
One of the ways Truebill makes money is by offering a paid subscription version of their free service called Premium.
As noted above, the company says to have over 2 million registered users. Of which, are 1+ million Premium members, according to Truebill’s blog.
While Truebill is free to download and use, its paid version offers its own set of perks and added features that the free version does not have such as Syncing your Balance, Premium Chat, Cancellations Concierge, Custom Categories, Unlimited Budgets, Smart Savings, and more.
Truebill makes money from this by allowing the users to pay what they want on a sliding scale between $2.99 to $11.99 per month. The user decides.
Truebill Premium Cost:
- $2.99 to $11.99 per month (users choose the price they pay)
Note: Truebill has over 1 million paying members.
#2. Bill Negotiation (Success Fees)
In addition to subscription revenue, Truebill also makes money by offering additional services – one being Truebill’s Bill Negotiation service.
Truebill will scan users’ bills to find savings for them. And if they believe they can find a better rate, they will negotiate a users’ bill on their behalf. If successful, Truebill will charge the customer what they call a “success fee”. This fee can range anywhere from 30% to 60% of the total amount they saved you on the bill in the first year.
For example, if Truebill negotiates $100 of annual savings off of the users’ bill, Truebill will charge the customer a $30 to $60 (30% to 60%) success fee for their services.
Truebill Negotiation Fee:
- 30% to 60% of the first years’ total savings on the bill (per successful bill negotiation)
Note: Truebill only takes a fee if the bill negotiation is successful. If it is unsuccessful, Truebill charges the customer nothing.
#3. Tips from Pay Advance
Another service Truebill offers is what Truebill calls Pay Advance.
Pay Advance is a service that pays and sends users a loan advance of up to $100 directly into their checking account. Interest free and no credit check required.
So how does Truebill make money off of this? Tips. Users can choose to tip Truebill between 0% to 24% of the loan advance size. So, if the loan is $100, users can tip Truebill $0 to $24 for their services.
Truebill Pay Advance Fee:
- 0% to 24% of the loan advance size (tipping is optional)
Note: This service is completely free and relies solely on tips from those using the service.
Truebill’s profit and revenue
Truebill has not released any official revenue numbers for the company.
Note: Because Truebill, 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 Truebill business and revenue model?
Truebill makes money through a few revenue models that they combine within their company, they are:
- Freemium (upselling) business model
- Pay what you want (PWYW) business model
- Subscription based business model
- Fee-for-service (FFS) business model
- Donations based business model
Truebill’s funding and valuation
According to Truebill’s Crunchbase profile, Truebill has raised $83.9 million over 6 rounds and has a valuation of over $500 million.