New social ticketing company FanFueled.com this week announced that it raised $1 million in venture funding, as the company looks to grow its profile in an increasingly competitive market.
Like other social ticketing companies, FanFueled enlists fans to help sell tickets by spreading the word about events to their friends. But the company is taking a slightly different approach by also offering fans a referral rewards program.
When a fan buys a ticket from the site, the site generates personalized links that the buyer can share with their friends on Facebook or Twitter. When a friend buys a ticket using the link, the original purchaser receives a commission.
The commissions can be put toward future purchases, or the recipient can request FanFueled send them a check.
Additionally, the company has a points program wherein fans can obtain points for simply spreading the word about an event they plan to attend. Points can be redeemed toward event merchandise, tickets, special access to events, and more.
“Over 20 percent of our users share their ticket purchase with their social networks, and each one of those shares is generating over 500 free peer-to-peer impressions for our events,” FanFueled founder and CEO Anderson Bell said in a statement released Wednesday, November 16.
Bell believes the traditional ticketing model is broken, in part because fans who buy tickets early often end up being penalized when tickets are discounted at the last minute.
FanFueled is flipping that script by rewarding fans who buy early because the sooner they send out their links, the longer they have to generate commission and earn points.
“Why not harness [a fan’s] passion rather than exploit it,” Bell told TechCrunch.com. “With FanFueled, the sooner people buy their ticket, the more rewards they earn.”
Besides the commissions, the company is also keeping its services fees low. Fees range from $1.49 for a ticket under $10, to $3.99 for a ticket between $100 and $199. Beyond that, the company adds $1 for every additional $100 per ticket.