Pros & Cons

Start A Travel Rewards App

Pros & Cons

Trying to understand the pros and cons of starting a travel rewards app?

Here are all of the pros and cons of selling travel rewards program online:

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Rewarding work Starting a travel rewards app can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
No overhead costs To get your travel rewards app started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!
Meaningful business connections You never know who you will meet as a travel rewards app. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins The gross margins for your travel rewards app are typically around 75%, which is considerably high and allows you to grow your business and manage costs easily.
Quick build time The average time it takes to build your product is quick - typically around 3 months. This will allow you to bring your product to market faster.
Unlimited income potential With starting a travel rewards app there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Amazing perks and discounts Working in the travel rewards app comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
You are your own boss! With starting a travel rewards app, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Higher likelihood of getting referrals This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.
You can generate revenue through your app! Although it can be pricey to develop an app, there are various different ways to generate revenue. You can make it so that customers pay a small fee to download your app and you can generate revenue through ads + sponsors.
App store allows you to reach a wide audience If your app is listed in the app store, you are easily accessible to users that frequently visit the app store. App store listings also show as separate entries on Google’s search rankings, which allows for more users to see your business!
You get to do something you truly love With starting a travel rewards app, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.
You can work from anywhere! Not only can you start your travel rewards app from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.
Easy to Learn The Business When starting your travel rewards app, there is a ton of information readily available to you online (Facebook groups, Youtube videos, Starter Story etc). This will help you get the business started and answer any questions, doubts or concerns you may have.
Make money while you sleep The advantage of starting a travel rewards app is that you have the ability to have passive income and make money while you sleep. This is the dream for many entrepreneurs.
Low maintenance customers In this industry, customers are known to be very appreciative and low maintenance. This can help with your stress levels and allow you to focus on growing your business.
Results and revenue happen quickly! Unlike other businesses, it can be relatively quick to start seeing results and revenue. As long as you follow [all the steps](https://www.starterstory.com/validate-business-idea) to validate your idea before launch, you are likely to see quick results and ROI.
Cons Description
Longer Sales Process A travel rewards app can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Security Issues With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Work can be inconsistent As a travel rewards app, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
Work can be repetitive You may find creating the same product over and over repetitive and tiresome. One way of avoiding this is to diversify product lines and revenue streams - this will keep things interesting!
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Difficult to build trust with your customer With starting a travel rewards app, there can be minimal face-to-face interaction, which means it can be a lot more difficult to establish trust with your customers. You'll need to go the extra mile with your customer to grab their attention and business.
Strict regulations With any travel rewards app, there are strict rules and regulations as it relates to processing your product. You must follow these regulations specifically, or significant legal issues could occur.
Profit-sharing with the app store If you are using your app to drive revenue, either through paid downloads or through purchases of your services through the app, then be aware that app stores get a substantial cut (around 30%) of revenue on top of sales tax!
Impatient customers You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.
Be prepared to get out of your comfort zone! Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!
More of a challenge to run your business from home! Running your business from the comfort of your own home is a big appeal for many entrepreneurs. With a travel rewards app, you are more likely to run your business out of your office or storefront space.
Work is not always glamorous With starting a travel rewards app, you may need to get your hands a little dirty. Although it may seem glamorous from the outside to start this business, the work can require a lot of physical activity and repetition.
Easy target for criticism Since your travel rewards app has the ability to reach a large audience, you'll need to be able to handle criticism. The internet can be a cruel place, and regardless of your intentions, many people will disagree with you and even take their criticism too far. To survive in this industry, you'll need to have tough skin (or at least learn this along the way).
Takes time to see results & make money Results and revenue do not come overnight with a travel rewards app. Often times, it takes weeks, months or even years for your work to monetize.