May 25, 2015 8 Questions With: Claim It!
I’m always skeptical whenever I hear the word “free.” Unfortunately it’s been stigmatized into being associated with scams or some sort of con. Nothing in life is free, right? Sometimes. Despite the stigma, there actually are some very legitimate businesses out there that give away free products for the sole benefit of the user – you just have to find them. One such company is called Claim It! They are a new, creative startup based out of the Big Apple, New York City. Each week users can choose to claim immediate prizes, such as a drinks/snacks, or opt to gamble on the chance to win a higher value item, such as a pair of Nikes or a Chromecast. What makes Claim It! so interesting however is not the fact that they can maintain a revenue model while giving away free items, but rather the loyal following that they have so meticulously curated, specifically within the millennials – something top tier brands and companies are constantly pining to gain access to via new channels.
1) What is Claim It! and how did you get involved?
Claim it! is a mobile giveaway platform that offer brands a simple way to connect with locals driven by free stuff.
Our iOS app lists new giveaway contests each week that New Yorkers can easily enter by watching 15-second advertisements. We deliver three new offers every Monday, and users have until the following Sunday to choose the one they like. They can change their minds throughout the week, but the choice that’s registered on Sunday evening determines their final entry. Everyone has an option to claim our weekly 100% guaranteed prize valued between $1-$5. Many of our users feel lucky and take a shot at the bigger prizes that we offer that are valued up to $599 with a smaller chance of winning.
Each Sunday, a randomized algorithm notifies users of their winnings via SMS. After winning, users have one week to stop by our van, show their phone to a Claim it! team member for confirmation, and pick up their prize. The van’s location changes daily, but can be easily found with the app. If a user ever passes by the van coincidentally, he or she can decide to claim the “instant win”, and get it right then and there.
What inspired the idea, was the rise of several daily deals apps. I thought, discount are good but free is better. I challenged myself by making a business plan and building an app that gives away free stuff.
I came up with the idea for Claim it! in 2008 but kept it a secret until 2013 when I knew I was nearing a solution. However, after 5 years of hard work I began assembling a small team to join me in building the product. Early on, it was a challenge to identify the company’s business model and scale . But we knew we needed to be relentless in order to find a solution. All with full time jobs, my co-founders, Khalid and Kaza, and I worked every Sunday morning at a local Starbucks. Sundays became what I call, “founders matrimony” where we would dedicate 7am – 2pm to work on Claim it!
2) When consumers are told that an item will be given away for free, the typical response is that it must be a scam – how have you been able to overcome this hurdle?
Since launching December 1, 2014, we like to say we have the the most exciting yet the most difficult job there is. We have to convince our users one by one that we’re legit. Our users are hesitant at first, but with Claim it! requesting 50% fewer permissions than most apps – this allows our users to be more comfortable and at ease, plus our staff who operate the truck are super friendly, patient, and helpful.
Even Apple rejected our app. They questioned the purpose of the app, our business model, and if anything like this existed already. We had to prove to them that we are really giving away free stuff. After Apple understood that we weren’t a scam they accepted us into the app store and to date Claim it! has more than 1,100 five star reviews. Users seem to love us. They are at the core of every decision that we make and we get a kick out of reading our user’s feedback.
Now, in our day to day endeavors we have a very unique way to show users we are really giving away free stuff, we call them our “instant wins”. Anyone who passes by our truck can download our app and win due to the beacon technology we use. So when a user is near the truck they are always a winner. And anyone who was skeptical before gets so blown away by a startup just giving away free stuff that they share our story with their friends. It takes time but we are definitely being validated from every angle.
3) What does a standard partnership look like in terms of gathering gifts from these high profile companies? Do you assist in developing the content to broadcast?
Partnerships are seamless, most of them come from the brands looking for our millennial audience. We give them ideas of what our audience wants and we will never just take products from brands, they must be cool to be on Claim it!.
4) As a kid, what did you want to be when you grew up?
I wanted to be Pythagoras. My dad was a math wiz and Saturday mornings he would bring a chalkboard into our bedroom and my brother and I would have to take part in a series of competitive math skills.
5) What does a typical workday look like for you?
We are steps away from closing financing, so I spend a bulk of my time fundraising, identifying growth and scaling the business. I do get out to the truck once a week to be with the users. Going to the truck is always a lot of fun, it’s nice to see people light up when they get something awesome, for free.
6) How do you determine what gifts to give away? Are there any considerations of ever giving away something of insane value, such as a car?
We try to identify what brands have a strong foot print with our millennial audience. A lot of the case studies come from our users. We have the pleasure of speaking directly with our users throughout the week. We get a chance to share potential brands with our users and actually gauge their interest. For example, HISY, a selfie camera remote thats sold at Apple stores worldwide, may not be a familiar brand for our users but after speaking with them at the truck we found out that they would love it. Now, it’s a favorite and it’s been so successful with our users that we’ve offered it several times.
7) Can you describe what the startup culture is like in NY? What was the reasoning behind launching in NY vs another major metropolitan city?
The whole team is from New York so it’s only natural that we launch here first. It’s a fast pace, driven environment so since we are looking for growth this is the city to be in. There is so much opportunity for us to collaborate with other amazing companies in the area.
8) If you could give some advice to your teenage self, what would it be?
I would tell my teenage self to get a haircut and to code often. My five year old daughter would like to give advice to my teenage self as well: “Eat less Ice Cream!” Back in school there was a saying, no cigarettes or sweets then they’re not a developer!