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Comment by O__________O | Hacker News Reader

Slidedeck for related startup:

https://drive.google.com/file/d/10OS9xmQws4wienCWpGdnf8bU1l7...

TLDR: Their model is “no transaction fee” — with a $2500 month subscription fee. At 3300 subscribers, they would be at 100 million ARR.

Feedback:

- There’s no mention of verbatim differences feature wise of their MVP vs AirBNB.

- AirBNB offers host insurance, no mention of them providing this.

- No mention of guest or host counts on platform or cost to acquire etc; retention numbers; etc.

- No information on founders or business jurisdiction.

* NOTE: See prior posts by user for additional information:

https://news.ycombinator.com/submitted?id=nomadpass

_________

Anyone additional thoughts on slidedeck, app, etc.? Curious what observations others have.

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Thank you for including slide deck. It has only been a week and I am just working on this in my spare time, doing my best. :)

Have you spoken to any AirBNB hosts that your $2500 month fee would be less than would they currently pay AirBNB, and if so, what did they say? How do you plan to deal with hosts that are unable to justify $2500 monthly subscription cost?

No it is not 2,500 subscription. It is based on an average rent, Nomad Pass is essentially a way for Nomads to pay their rent, through the app without fees, without legal contracts or credit checks.

Some people (like myself) can afford a 2,500 rent but can't seem to be approved for a 2,500 mortgage, due to credit and this "Feature" of Nomad Pass is for people in my shoes.

That's not really Nomad revenue though if it's all going to hosts. What are you taking in as the platform?

For now, I don't think monetization is the focus during preseed/seed stage

> ... Nomad Pass is essentially a way for Nomads to pay their rent, through the app without fees, without legal contracts or credit checks

I would go that very carefully with a lawyer. The contracts and credit checks are a way for the landlord to mitigate risks. You need to identify where the risks are and who is assuming those risks if you not doing contracts or credit checks.

So you’re planning to cover expenses with investor funds — then switch on fees at series C after having built up user base that assumes the service is no fees?

Yes! That is what Airbnb did, they were not (or still aren't) profitable, yet took on 6.4 billion dollars in funding.

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