Corkd Essay

578 Words3 Pages
Q1 What is the business model of Cork’d ? Ans : Cork’d is a wine social network, where you can rate and review wines, become a fan of a wine, winery or grape varietal. Users could upload profiles, interact with other users and choose drinking buddies. To purchase wines, users were directed to external third party sites, and cork’d received commissions for such clicks. Also it allowed its users to link their facebook and twitter accounts to Cork’d profiles. For wineries, it provided option of maintaining profile pages, where they could post information, provide links to their own websites and interact directly with their fans. Individual accounts were free, and there were charged no premium features on the website. However, winery account required a $999 annual fee, and in turn, wineries were identified as verified. Cork’d was an ad-free site, so that users can have the best possible experience. Its only source of revenue was the annual fee for winery account, and it provided wineries a good marketing platform. Q2 Do you agree with the decision to charge wineries $999 for an account? If yes, justify. If not, what alternative would you propose? Ans : Cork’d provided two options for wineries. They could either pay an annual fee of $999, and get themselves registered as verified, and get a host of other features as well. For those wineries that did not have a paid account, Cork’d created a bare-bones page. Wineries had the option of upgrading to full membership. However, no wineries had signed up using this route. This shows the fact that wineries did not feel that the benefits of using Cork’d as a potential marketing platform were worth its cost. Thus, this cost was not felt justified. Cork’d would have to increase user base so that wineries realize its importance. However, for increasing its user base, it would have to get more wineries registered. I would propose

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