Drum is a new sales platform that helps businesses get new customers and also helps consumers earn money by making referrals. It harnesses the power of word of mouth marketing.
Word of mouth marketing is an important source of customers and clients for businesses – particularly for small businesses that don’t have a sales force or that derive little or no benefit from traditional advertising. Many business owners, however, don’t know how to get people talking about their business. Furthermore, they can be shy or reluctant to ask customers, friends, and associates for referrals.
Meanwhile, millions of consumers wish they could make more money in a part-time business or side gig that doesn’t interfere with their day job – and doesn’t require them to use their car to drive deliveries or people around town.
Now there’s a solution for both groups. It’s a new sales platform appropriately called Drum. It’s designed to help businesses of all types drum up business and also provide an income opportunity for men and women who want a way to earn extra money. Yet a third benefit: Drum provides buyers (shoppers) with a way to hear about products, services, and deals and find reliable companies to fill their needs.
Launched with nearly $11 million in seed capital in September 2019, Drum is cofounded by Rob Frohwein, Kathryn Petralia and Troy Deus. Frohwein and Petralia are also the co-founders of Kabbage, an online business lender that provides funding for small businesses.
The idea for Drum grew out of a belief that small businesses who are looking for customers and community members who want an additional source of income could help one another. Mulling over how that could happen, Frohwein posed the question, “What if we could turn anyone in the community into a salesperson?” And, that is what Drum aims to do.
What Drum Does for Businesses
Drum is a sales platform and marketplace that helps businesses promote their companies with a pay-for performance model. Instead of paying for display advertising, search engine pay-per-click fees or the cost of a mass mailing, businesses on Drum pay a commission when a sale is made. “The mission of Drum,” Deus explains, “is to give businesses a new risk-free way to build up their customer base.”
Because there are multiple types of offers a business can make, the platform can benefit service providers as well as retailers and manufacturers. For instance, a business such as a home improvement contractor that doesn’t want to discount, or a company for whom BOGO-type offers don’t make sense, can choose to offer a flat fee to Drummers for each referral they send that results in a purchase.
How Drum Helps Consumers Earn Money
On the flip side, Drum provides the general public a way to make money by making referrals to businesses they like. The objective here, Deus says, is “to empower businesses with a risk-free, results driven approach to acquiring customers while giving anyone the ability to earn money on their terms promoting businesses they believe in while acquiring valuable sales skills. Drummers can earn money in their free time or make it a full-time job depending on how much initiative they have. We love the idea of putting the marketing dollars back into the community – back to the people most likely to drive the most loyal customers.”
Gig workers, influencers, stay-at-home parents, and anyone who’s looking for an opportunity to earn money can sign up as a “Drummer.” Once signed up, they can look at the offers businesses are making for their location and choose the ones they want to promote. When a buyer makes a purchase as a result of a Drummer’s recommendation, the Drummer earns a commission. Drummers can also earn money by recruiting businesses who post offers on the platform and by signing up other Drummers who successfully sell. A Drummer cannot make a commission on their own purchases.
What types of businesses benefit?
Drum is designed to support any size business, from sole proprietors to large organizations. For example, a very small company that is good at what they do but doesn’t have the time to market and can’t afford to hire a sales force would benefit from Drum. These might be web developers, chiropractors, design companies, electricians, painters and any other typical local small businesses.
Large organizations that may have a salesforce in one or two locations and want to expand “complement their existing sales groups by having Drummers wherever they want to start earning business. They could be out there driving leads or doing a complete sales cycle,” says Deus.
How the System Works
A business that wants to use Drum to acquire customers signs up for the service and provides credit card or bank account information necessary to make payouts for sales that are made. The business can choose to make one of three basic types offers and sets the commission (total fee) they are willing to pay for each sale that results from the offer.
They can set a limit on how many offers they’ll redeem and set a time frame for redeeming offers. For brick and mortar purchases, sales and commissions are tracked through QR codes that Drummers give to buyers and buyers show at the time of purchase. For online offers, sales and commissions are tracked through a simple piece of code dropped onto the site.
Savings offer: Where a business publishes an offer with a Drummer commission assigned that includes a dollar or percentage savings attached for the customer.
Loyalty offer: Where a business publishes an offer with a Drummer commission assigned that releases a savings to the customer after a specific number of redemptions.
Referral offer: Where a business publishes an offer with a Drummer commission assigned, but does not offer a customer discount. Example: a web design agency wouldn't do a buy one get one free website.
The business pays zero until they actually get a customer. “When a buyer makes a purchase, the business scans the redemption code. Then, the commission is recorded and the business is charged the commission they agreed to pay. The business can track the redemptions and the commission they agreed to gets debited from the credit card or bank account once a week.
The total commission the business pays for each sale gets divvied up into several chunks. One chunk – 40% --goes to the Drummer whose referral resulted in the purchase. The rest of the set commission gets used to payout bonuses to the Drummer who signed the businesses and Drummers involved with signing the buyer and the Drummer. The remaining portion of the commission goes to Drum.
The platform allows businesses to post information to help Drummers understand their company and make sales. This information can include things like a company background, business value proposition points, and training materials to help Drummers sell.
Drummers who are looking for businesses to promote are shown the actual reward they’ll earn for each sale they refer. They can use all the additional information the businesses post to determine which businesses they like and want to promote to their networks and connections. When they decide which offers they want to promote, they can retrieve a QR code they can pass along to their network or a link they can send their contacts. (When someone clicks on the link, they’ll be taken to a page with the tracking QR code or the online offer.)
Drummers can promote person to person, they can put offers on their website or blog, and share them on social networks. They can also copy a link and send it in email.
The buyer displays the code at the time of purchase, the business scans it, and the sale is recorded and tracked. For online offers, the buyer simply clicks on the offer link, makes the purchase, and the redemption is recorded.
Original Source: https://www.businessknowhow.com/marketing/drum.htm
The three types of offers businesses can make are:
Savings offer: Where a business publishes an offer with a Drummer commission assigned that includes a dollar or percentage savings attached for the customer.
Loyalty offer: Where a business publishes an offer with a Drummer commission assigned that releases a savings to the customer after a specific number of redemptions.
Referral offer: Where a business publishes an offer with a Drummer commission assigned, but does not offer a customer discount. Example: a web design agency wouldn't do a buy one get one free website.
The business pays zero until they actually get a customer. “When a buyer makes a purchase, the business scans the redemption code. Then, the commission is recorded and the business is charged the commission they agreed to pay. The business can track the redemptions and the commission they agreed to gets debited from the credit card or bank account once a week.
The total commission the business pays for each sale gets divvied up into several chunks. One chunk – 40% --goes to the Drummer whose referral resulted in the purchase. The rest of the set commission gets used to payout bonuses to the Drummer who signed the businesses and Drummers involved with signing the buyer and the Drummer. The remaining portion of the commission goes to Drum.
The platform allows businesses to post information to help Drummers understand their company and make sales. This information can include things like a company background, business value proposition points, and training materials to help Drummers sell.
Drummers who are looking for businesses to promote are shown the actual reward they’ll earn for each sale they refer. They can use all the additional information the businesses post to determine which businesses they like and want to promote to their networks and connections. When they decide which offers they want to promote, they can retrieve a QR code they can pass along to their network or a link they can send their contacts. (When someone clicks on the link, they’ll be taken to a page with the tracking QR code or the online offer.)
Drummers can promote person to person, they can put offers on their website or blog, and share them on social networks. They can also copy a link and send it in email.
The buyer displays the code at the time of purchase, the business scans it, and the sale is recorded and tracked. For online offers, the buyer simply clicks on the offer link, makes the purchase, and the redemption is recorded.
Original Source: https://www.businessknowhow.com/marketing/drum.htm
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