Sell

Co-branded services

To stabilize future earnings, companies can diversify revenue streams by co-branding initiatives and/or specific assets. Revenue from the advertiser provides working capital potentially needed for ongoing operations or growth.

For example, the market for secondary raw materials is susceptible to raw material and commodity price volatility. Low commodity prices can undercut the business model of recycling companies as material demand will follow the best price.

Example

Binee: Ad-sponsored recycling

Situation

  • 66% of all US electronics produced are collected for reuse or recycling on a unit basis (56% on a weight basis) in 2010.
  • The US exported 8.5% (3.1% on a weight basis) of all collected electronic waste.
  • When disposed of improperly, electronic waste results in environmental and health risks.
  • The US and China produce more e-waste than any other country.
  • Latin America and Asia are the two regions that receive the most electronic waste imports.

Challenges

  • Low commodity prices for virgin materials in electronics.
  • Logistics and transportation costs may make recycling unprofitable if sufficient volumes are not achieved.
  • Balancing the quantity of drop-off locations with logistical costs associated with waste collection.
  • Complexity of manufacturing and types of materials make recycling electronics difficult from a profitability perspective.

Solution

  • Binee provides electronic waste collection services made financially possible through ad-sponsored recycling.
  • In addition to providing a responsible way of disposing of devices, it will reward consumers with a discount for every device they return.
  • Users get to select the coupon from a select group of vendors.

Key benefits

  • Consumers are financially incentivized to return electronics for recycling
  • Electronic waste stays within the economy and kept out of the landfill