We have chosen mystery boxes, part of the creator economy for the seed stage monetization strategy. The concept is very similar to labubus. Just like how labubus are hidden behind a box with various odds, we will have a designer create items in our mystery boxes. This is a very lean model with near-zero marginal costs but the returns will be massive.
Creator economy is starting to become the next sustainable business model. If we look back in history, it started with bartering, then one-time payments, then subscriptions. Now with creator economy, users are incentivised to contribute to platforms, and so far it has proven to be a dominant business model in this era, already showing success in multiple sectors like gaming (roblox), e-commerce (shopify), social apps (line & youtube) that are generating billions from this. But the best part is that the younger generation have been really receptive and enthusiastic to this model.
Based on our projections, we estimate 1% of our users to be spending $6.33 a month on mystery boxes - that means a $760 annual revenue at 1 million users, leaving us with $500K net profit after accounting for operating expenses.