TreatFeed For You And Your Peeps
April 27, 2011
Last week the Los Angeles startup company TreatFeed launched its innovative spin on social networking and e-commerce.
Rather than just a “one-dimensional” reward for a referral (i.e., one-time $10 credit), TreatFeed wants to reward you for your social recommendations with cash, products or exclusive offers.
How it works: TreatFeed aggregates deals across the Web. You visit TreatFeed to see the details, then ask your friends and family to join. When you find a great deal, you can recommend it to your Peeps (you have four generations of Peeps). If one of these Peeps actually purchases the deal, TreatFeed receives an affiliate commission and splits it with you. You’ll receive a percentage, and the Peep(s) under you receive a smaller percentage. It almost follows the multilevel marketing (MLM) model or a pyramid scheme, but this system takes advantage of the preexisting conversations between shoppers.
Mahalo to TreatFeed senior vice president Scott Roback, who took the time to speak with me about the company.
“People love sharing commerce opportunities, and by using TreatFeed, you can turn word of mouth sharing into financial rewards,” Roback says. “TreatFeed takes advantage of the fact that shoppers are already recommending products and services to their friends, and it rewards you for bringing in more users.”
This Social Tree model represents a smarter and more profitable way for you to monetize your purchasing recommendations. From a business perspective, it’s brilliant as TreatFeed’s advertising partners can market to an audience for an extended period of time as the sharing goes viral among various social networks. It doesn’t require consumers to return directly to the originator’s website.
TreatFeed is the creation of HauteLook founders Brett Markinson and Konstantin Glasmacher, who sold the flash sales platform to Nordstrom for $270 million a couple of months ago. The company raised $5.4 million in venture capital funding led by Norwest Venture Partners. Partners Josh Goldman and Tim Chang joined TreatFeed’s board of directors.
“TreatFeed is leading the convergence of e-commerce, gaming and the deal economy and is creating a service that is incredibly compelling for consumers and retailers alike,” Goldman says. “Consumers are already sharing deals on social networks, and TreatFeed has found a way to tap into this trend, rewarding users for their influence and activity. This is the first of a new generation of engaging, social commerce platforms, and we’re proud to be associated with this top-notch team of innovators.”
I remember when I first wrote about Twitter, I received many puzzled e-mails from readers wondering what the heck they were supposed to do with it. Now, who doesn’t know what Twitter is? As I’ve watched many companies such as this one grow over the years, I’m looking forward to seeing how TreatFeed will evolve. See it for yourself at treatfeed.com. Additionally, very soon you’ll be able to use TreatFeed with a mobile app for your iPhone, Android or BlackBerry.
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