Lessons from Lolli’s (Bitcoin Cashback) Marketing Strategies

Introduction #

It is 2017; bitcoin has just started getting popular in the market, with prices hitting time highs day after day. But Bitcoin was only limited to software junkies and technology geeks at the time. The ones who knew how to code and mine the BitCoin benefited from this upward-moving trend.

This created a huge gap between cryptocurrency owners, and this gap needed to be filled. Bitcoin needed to be introduced to the masses for widespread adoption, and offering BitCoin as a loyalty reward was one of the best ideas. That is how Lolli was born.

👉 How was the Lolli Cashback Platform created? #

Lolli, the name inspired by the LolliPop that its founder used to get as a kid when he visited the bank. Alex Adelmen founded Lolli in 2018 in the city of Durham, North Carolina, US. He started the company with an aim to introduce cryptocurrencies to the consumers who shop online. 

He had been working in the retail industry for a long time and didn’t want to leave the industry. So, he thought of exploring the cryptocurrency space while staying in the retail industry.

The idea behind Lolli was instead of giving cashback in the cash or gift cards, give something that works as an asset in the long term and the idea instantly became popular with over 300,000 users December 2023 in the US. 

“The earliest Lolli users who earned bitcoin when it was at around $3,000 have seen their rewards increase in worth by more than 10X today,” Alex Adelmen

Lolli is clocking a revenue of $8.3 Million per year. To date, Lolli has given over $10 Million in BitCoin rewards.

But how they can afford to give such rewards? How Lolli works and what makes it different from other competitors in the cashback industry?

In this article, we will discuss how Lolli works, what makes it unique, what lessons can be learned from its business model, and how you can create a platform similar to Lolli.

👉 How Lolli works? #

Like every other cashback platform, Lolli partners with retailers. Retailers pay Lolli a commission for bringing customers to their stores, and Lolli then pays a part of this commission to users. 

For example, if a user clicks on Lolli’s app’s 3% cashback offer to make a purchase from Amazon, Amazon pays Lolli, let’s say, 7% of the sale. So if a user makes a purchase of $100, Lolli gets paid $7 by Amazon, and it pays you $3, i.e., 3% of the purchase amount.

The only difference is Lolli pays you cashback in the form of BitCoin or Satoshi in Lolli’s wallet. However, users still get money into their bank account if they want.

👉 What made Lolli unique from other cashback platforms?  #

Giant retailers from the beginning #

Many cashback platforms launch with a limited number of retailers, and there are mostly no popular retailers available on their platforms. But Lolli isn’t one of them. Alex had been in the retail industry, and he used his network to get as many retailers as possible from the beginning. 

He told TechCrunch that the users already had the option to choose from 500+ retailers, including Forever21, Jet, Bloomingdales, and more. It has grown to over 25,000 retailers to date and this gave Lolli an upper hand over its competitors. Users who shop online started shopping via Lolli to earn BitCoins as rewards. As of October 2023, Lolli had seen a 35% year-over-year rise in the number of active shoppers.

Offering Cashback in BitCoin and Satoshi #

As we mentioned earlier, BitCoin wasn’t for everyone to own. Only the few elite group of software engineers and coders owned it. Lolli gave consumers an opportunity to earn BitCoin and Satoshi for shopping online. This helped Lolli attract new customers to the platform and generate revenue.

Card Boosts #

Card boosts is a feature like LinkMyCard that can be found on many cashback platforms. You link your credit or debit card with the cashback platform, and you earn rewards every time you swipe your card at a partner merchant. But Lolli did something different here. They keep updating the card offers regularly on specific merchants. These offers are limited time only and if you transact using your card during the offer period, you earn extra cashback.

Users are easily attracted because they are getting rewards from banks and Lolli. Banks offer them reward points, and Lolli gives them cashback, which gives users a reason to use Lolli more frequently.

Daily Stack #

Alex, the founder of Lolli, knew that user retention would be a problem, and that is the reason they introduced Daily Stack in the Lolli app. The concept was very simple. The Lolli team knew the users wouldn’t be shopping daily to earn cash back, so the team invited users to play an interactive game on a daily basis. Users just have to tap the Daily Stacks loot box to win up to 1 Million Satoshi every day.

This helped Lolli attract users who used the app daily. When users visited the app, they also looked at the cashback offers and eventually ended up shopping online. 

Lolli browser Extension #

The app was working well, but the Lolli team was figuring out ways for people who were shopping on the computers. So, they launched their Lolli Browser Extension. The concept is very simple: whenever a user visits a retailer site, lets say Forever21, the user can click on the Lolli extension and see how much cashback they can earn if they shop via Lolli. 

This offered a convenient way of checking cashback rates and gave users a reason to shop via Lolli to earn Bitcoin rewards.

Easy to use mobile app #

Lolli’s mobile app is the heart of its business. It attracts the most active customers with its easy-to-use interface. The signup process is simple, and users can browse and shop from the retailers available to earn BitCoin rewards. The app provides clear and transparent transaction data so users can keep track of their earnings in real-time. The app includes features like LinkMyCard and Daily Stack to keep the users engaged.

Attractive cashback rates #

Lolli offered a cashback rate of up to 30% on online shopping, which attracted many users. Lolli claims that it offers an average of 7% cashback on online platforms. Also, they have retailers in many categories, like retail, hotel and flight booking, online courses, and more. So, whatever a user wants to buy, they can always find some cashback offer from Lolli. It attracts most users to the platforms.

Referral bonuses #

Lolli has a referral program where users can earn BitCoin for referring their friends to the platform. For every referral, Lolli rewards users with $5 worth of BitCoin when their friends make a first purchase. This helps users diversify their earnings. Users can find their link either in their Lolli Wallet or Browser Extension.

👉 Lolli’s Partnership strategies #

Retailer Partnerships #

Lolli has partnered with a wide range of retailers, both online and offline. Whether it is grocery, fashion, or electronics, Lolli has partnered with big retailers in every category to offer their users options to buy and earn cashback. These partners pay them a commission, and Lolli pays a part of it to the users.

Affiliate marketing #

Affiliate marketing is Lolli’s fundamental source of revenue. Basically, Lolli is an affiliate for every retailer that is available on their platform. The commissions are the primary source of revenue for users.

Promotional campaigns #

Lolli often runs promotional campaigns in partnership with brands with higher reward rates. The brands offer them exclusive cashback rates, which users won’t find anywhere else. This enables Lolli to attract more users to its platforms, and since these promotional campaigns are limited-time only, it helps them generate more revenue during that period.

Referral Program

Lolli offers a flat $5 worth of BitCoin to every user who brings new users to the platform. They offer $5 to both parties on their first purchase. This helps them in user activation, and the attractive cashback rates and engaging features help Lolli keep users loyal to them.

👉 Pros and Cons of Lolli #

Pros

• Earn rewards in BitCoin and Satoshi
• Upto 30% cashback from 25,000+ retailers
• Wide range of retailers to choose from
• Transparent earning dashboard
• Option to Link your card to earn cashback on card swipes

Cons

• Only available in the US
• Transaction charges for transferring BitCoin to wallet and 0.25% charge on withdrawing to USD bank account
• Minimum withdrawal amount of $15
• Market volatility in cryptocurrencies can impact users cashback earnings
• Less options available for withdrawal like gift cards

Lolli’s Success Metrics #

User base: 300,000+ users
Retailers available: 25,000+
Revenue: $8.3 Million/year
Rewards disbursed: $10 Million in BitCoin rewards
Funds raised: $28.2 Million(Till December 2023)
Monthly Site Traffic: 58.56K

Lolli Legitimacy: Is Lolli Legit or Scam? #

Yes, Lolli is a legit cashback platform. It has been in the business for more than six years and has distributed over $10 million in bitcoin rewards.

Given that it has been funded by multiple investors, some of them happen to be well known in the industry, its user base and the number of retailers, which includes brands like Nike, Adidas, Udemy, and Amazon, are proof that Lolli is a genuine cashback platform.

Here are some of the reviews from users:

Shana Jordan: The best way to get into bitcoin. I started using Lolli for my makeup and sneaker purchases, and it’s been so great to see my earnings accumulate. Plus it’s the perfect bitcoin on-ramp for my friends and family. I also love their new card boosts and the ability to earn in-store. 

Pearson Cunningham: Lolli is an awesome way to passively earn bitcoin. Being a relative novice myself, I’ve really enjoyed dipping a toe into the crypto space without having to be an expert, earning as I learn at my own pace. Love to see the continued expansion into new browsers.

Elena: Lolli makes earning Bitcoin so easy. Especially loving the new in-store earning feature. New partners every week, and super high rewards rate. You can’t beat getting 10% in free Bitcoin back on every coffee. Obsessed.

Planning to build a clone app like Lolli? #

Use Crypto CashBack Solutions 

EnactSoft helps entrepreneurs and businesses develop crypto cashback solutions. You can build a platform similar to Lolli using our solutions like Crypto CashBack. Our solutions offer you flexibility to customize it based on your business requirements and goals. You can make changes in design, integrate new affiliate networks, and add new features to further enhance your platform’s capability to grow your business. 

You can add multiple cash back options, including crypto, gift cards, cash withdrawals, and more. Moreover, our wide range of cashback and coupon solutions allows you to operate globally with multilingual and multi-currency support to gain the upper hand over Lolli.

Connect with the EnactSoft team today!

Affiliate Partnerships:

If you are looking to partner with affiliate networks worldwide, refer to the list of networks below in different regions.

• Leading global affiliate networks
• Leading affiliate networks in India
• Leading affiliate networks in Europe

Lessons from Lolli’s Journey
#

Innovate within your niche

Lolli’s approach to offering Bitcoin as a reward helped them stand out in the market. This didn’t just attract users but also helped them introduce BitCoin to a wide range of audience. It showcases how you can find a unique angle within your niche.

Leverage your experience

No matter which industry you belong to, you can use your experience to innovate and deliver products that deliver real results. Just like Alex did, he used his experience in the retail industry, combined it with the latest technology trends, and built a product around it. And its success is proof that, if executed properly, any idea can be turned into a profitable business.

User engagement is the key

Engaging users is the key to generating revenue for cashback platforms. Lolli’s app features, such as Card Boosts and Daily Stack, show how you can innovate with existing ideas and engage your users to help your business grow.

Adapt and expand

Lolli expanded from a mobile app to a browser extension. Why? Because they wanted to offer 360-degree experience across all platforms whether its your phone or PC, they wanted to help you earn cashback. This adaptability helped them grow to what they are today.

Conclusion #

Lolli’s business model is proof that the businesses that are innovative can survive in the digital age. As Lolli continues to grow, it is setting a promising example of how traditional industries can be transformed with creative and forward-thinking approaches.

No matter how big your competitors are or how saturated the market is, if you stay ahead of the trends and build a product that rewards your customers, you can build a successful business.

We at EnactSoft have more than a decade of experience in the cashback industry. Our team of experts can help you stay ahead of the trends and build a cashback platform that makes your business profitable. Our developers can help you launch your cashback platform within two weeks. 

Connect with our team today!