How Does Dosh Make Money? Dosh App Business Model In A Nutshell

Dosh is a Fintech platform that enables automatic cash backs for consumers. Its business model connects major card providers with online and offline local businesses to develop automatic cash back programs. The company makes money by earning an affiliate commission on each eligible sale from consumers. 

Origin Story

Dosh is an app allowing consumers to earn a percentage of cashback on eligible purchases.

At the beginning, the Dosh business model involved the creation of partnerships between major retailers or brands and payment card providers Visa, Mastercard, and American Express.

Consumers can earn up to 10% cash back in some cases, but most stores offer something in the range of 2-5%.

Dosh is a true set-and-forget app for debit and credit card purchases. It is not like other cashback schemes requiring the consumer to follow a series of convoluted steps to claim a reward.

Once a consumer attains $25 in their Dosh balance, they can transfer the money into a bank or PayPal account. Alternatively, they can donate the balance to a charity of their choice.

Dosh revenue generation

Dosh makes money through affiliate marketing. When a consumer purchases at an affiliated store, the company receives a small commission. This commission is then shared with the consumer who made the original purchase.

The company believes that a direct cash reward is a far stronger incentive for a consumer to buy than traditional advertising thus directing billions of dollars wasted on advertising into consumer pockets. 

Indeed, Dosh’s mission is to “positively impact people’s lives by moving billions of dollars to millions of people.”

Displayed in the Dosh app is a list of deals from local online and offline merchants. For consumers wishing to go on vacation, Dosh also offers large savings on hotel accommodation of up to 40%.

Targeted deals

Perhaps the most significant driver of revenue generation for Dosh is its ability to send targeted deals to consumers.

For example, consider a scenario where two consumers living in the same town visit the same restaurant. The first consumer is an infrequent visitor to the restaurant and prefers to eat smaller, lunch-time meals. The second consumer, on the other hand, is a restaurant regular who tips well and often brings their family too. Here, the latter is likely to receive a better cashback deal than the first patron. In turn, this reinforces desirable buying behavior and allows Dosh to make more money.

Dosh is also able to maximize revenue by removing barriers to purchasing. The app takes the guesswork out of each deal by clearly dictating the terms, conditions, and specific discounts available for each.

Furthermore, the company has an interesting referral program. Consumers are paid $5 for getting their friends to sign up for the program, which is far from the most competitive rate in the industry. However, consumers who refer businesses to Dosh receive 20% of their Dosh fees for the next two years.

Key takeaways:

  • Dosh is an app allowing consumers to earn a percentage of their purchase as cashback. The Dosh business model is built on a relationship between major card providers and participating online and offline businesses.
  • Dosh makes its money through affiliate marketing. After an eligible sale, Dosh shares the affiliate commission with the consumer who made the purchase.
  • Dosh executives believe that a direct cash reward is the strongest consumer purchase incentive. In some instances, these rewards are tailored to each consumer based on the degree of interaction they have with certain businesses.

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