On Neighbourhood, we will have commercial clients, who are incentivized to join up because we send Neighbourhood users to their services, which may be a hotel, restaurant, or leisure establishment. Our business model relies on affiliate fees from these commercial clients, which will be known as Neighbourhood partners by the public.
We will charge a flat fee to every commercial client, for every individual Neighbourhood user that we send. This will be staggered for different types of commercial entity, for example:
| Commercial clients (Neighbourhood partner) examples | Flat fee paid to Neighbourhood by partner |
| Restaurants | £1 |
| Coffee | £0.20 |
| Cinema | £0.50 |
| Salsa classes | £0.20 |
When a Neighbourhood user arrives in a commercial client’s premises, shop or restaurant, they will present the Neighbourhood app and explain they are a Neighbourhood user.
The commercial client will add a transaction code to the user’s transaction (made up of their client code and the date and time), which may or may not include a discount (this is up to the deals offered by the commercial client to neighbourhood users only).
When the transaction code is generated this will be logged in our database for that client and user. This will support:
- Recording that the commercial client owes us the appropriate affiliate fee (see table above for examples)
- Recording that the user has earned some reward points
Commercial clients will build up an account with Neighbourhood which stores:
- Transactions and affiliate fees debited.
- Reward points redeemed in their store by Neighbourhood users (Neighbourhood credits the client account with the amount in money, each time a Neighbourhood user redeems Neighbourhood points in a Neighbourhood partner establishment).
Commercial users will be stored in our system along with their bank details. This will enable any credit balance they build up, where they redeem points from Neighbourhood users, to be transferred to them from us.
By Mariam and the whole team.