Every so often here in the United States, a company will attempt to capitalize on the popularity of a particularly big sporting event by offering a promotion: Buy an item (furniture, television, or whatever) and, if the local team wins, you get to keep it for free. It is typically a one-off type of deal, but British startup DiscountIF has decided that this may just be a permanent business model.
The deals, which are all football-related, extend to items in categories like “photography”, “home and garden”, “electricals”, “gaming”, and so forth. DiscountIF does not rely entirely on full discounts, but allows users to upload offers and set a rebate level that can be achieved if the bet (as this is gambling) pays off. For instance, one of the deals currently listed on the front page allows users to purchase a 500GB Playstation 4 for 305 British pounds and receive 40% of their money back if Juventus goes on to win the Champions League. DiscountIF operates by taking the revenue earned from sales of the items, minus the cash that that they pay out. The startup says that they consider cash paid to essentially be marketing expenses.
The startup does not wish to reveal their total number of users, but founder and CEO Lewis Holland told me that they have reached 6 million people through their offers. Holland adds that 50% of customers return to make another purchase, while more than 60% of users who received cash back have turned around and shared the news with their followers on Twitter.
They also keep their external funding under wraps, but Holland says that they have seed funding from a group that includes Stephen Ives, who worked as Chief Product Officer at Irish online gambling company Betfair.