Stickk Case Study

StickK.com helps people become better versions of themselves. It quantifies resolutions into binding commitment contracts that hold people accountable by drawing from two major tenants: B.F. Skinner’s theory of operant conditioning and behavioral economics. By allowing users to set goals and affix penalties if they do not meet them, StickK empowers people to exploit their psychology by putting money or their reputation at stake in attaining goals while subverting impulses to adjust or redefine them later.
StickK’s B2C site makes money using the goal attainment model - people set goals and are assessed a penalty charge if they do not meet them. Users choose where the penalty goes and StickK takes a percentage. The company’s B2B model makes money through platform setup, customization, and monthly administration fees based on subscriber numbers. The B2C model alone has profit limitations, since only 32% of users commit monetary value to their goals, and of those, only 17.2% default. From 2007 to 2012, users wagered $17 million, translating to less than $435,000 in revenue after credit card fees. What’s worse, the company loses money on transactions where the penalty goes to a user’s friend/family member since they charge no

Considering infrastructure costs and their 12-person staff, StickK’s B2C business has not been profitable to date. The company may have a viable business model, however, by expanding its B2B segment while