Hello, fellow entrepreneurs!

I’ve been brewing a business idea and would greatly appreciate insights on how to bring it to life. My concept revolves around offering businesses a service to drive sales while minimising their financial risk.

Here’s the gist: I aim to provide businesses with a strategy where they can entice customers with the chance to win substantial sums of money, in return for a nominal fee or a mutually agreed-upon percentage of their increased sales. The catch is, if a customer wins, the prize payout would be covered through an insurance policy.

For instance, picture a local takeaway wanting to draw more customers. We agree that for every purchase over £35, customers get a shot at winning £10,000 by spinning a wheel. The takeaway owner, in this scenario, would pay me a fixed fee for this service.

I’m eager to navigate the logistics of this idea. How would one go about structuring such arrangements? What legal, financial, or logistical considerations should I bear in mind?

Moreover, how can I approach businesses with this proposition and ensure a win-win situation for all parties involved?

I know the model isn’t new as insurance companies directly offer this type of policy but I would insert myself as the middle man and manager the policy, game and paying the winner and I’m not sure if something like that exists.

I’m open to any guidance, tips, or experiences you can offer!

  • OrangeSunset86@alien.topBEnglish
    1·
    1 year ago

    Have you looked at other businesses doing this? How do they do it?

    This could be useful for booths at amusement parks, where they already have the physical hardware (“shoot the bullseye”). How would you get physical wheels to the businesses? If it’s virtual, how would customers trust that it’s not rigged?

    Thinking as a customer, I probably wouldn’t be interested in something that’s pure luck. I’d be more interested in something that’s skills-based. Like, if I were buying something that was $34, I might pay an extra $1 for a shot at the prize. So this could be a ‘guess the president’ trivia game or ‘shoot the bullseye’ instead of ‘spin the wheel’. Actually, I’d probably pay an extra $1 for a shot at even a $50 prize as long as the challenge sounds fun. The prize also sounds more attainable at $50 than at $50k.

    But I’m not a gambler :) Maybe this is more interesting to folks who buy lotto tickets?