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HealthyWage is a health and wellness company based in the United States that focuses on weight loss and fitness challenges with cash awards.
HealthyWage unusually generates most of its revenue. This is because the company behaves similarly to a traditional bookmaker by ensuring it will “win” more often than “lose.”
This is the only way the company can remain profitable. In addition, HealthyWage works with corporate partners who pay them to monitor their weight loss programs.
HealthyWage business model is based on betting, sponsorship, and administration fees, which it charges.
What is HealthyWage?
HealthyWage is a site where users can bet on how much fat they will lose over a certain period of time.
HealthyWage makes money when its users lose bets. HealthyWage also generates additional revenue from sponsorships, selling aggregated data to businesses, and administrative fees.
HealthyWage, which was founded in 2009, has emerged as a market leader in the weight loss betting industry (next to DietBet). This firm has distributed more than $50 million in cash prizes so far.
How Does HealthyWage Work?
HealthyWage is a platform that allows users to bet on how much weight they will lose. So people are placing bets against the corporation.
The process works like this. You must first enter all pertinent data into our calculator. That includes: And a few extra factors such as your current weight, height, gender, or the reasons behind your weight loss goal.
- The amount of weight you want to lose.
- How long it will take you to reach your goal.
- You plan to bet how much money each month.
HealthyWage generates a price proposal based on the information you just entered. In addition, we will reward you by cheque or PayPal if you achieve your weight loss goal.
You may also use the HealthyWage app (available for Android and iOS devices) to monitor your progress and stay on track.
The firm also offers users access to a private coaching staff that includes nutritionists and trainers.
There are group challenges as well as individual challenges available to users. You may receive these from a group of friends or your employer.
Many tournaments feature athletes from almost every country, including the United States, Canada, Australia, Mexico, and many more.
HealthyWage claims to have helped thousands of people lose weight effectively and paid out cash prices as high as $1,331.
Is HealthyWage a Scam?
No, HealthyWage is not a scam; it is a legitimate business.
HealthyWage has been serving its customers since 2009. The company provides monetary incentives to customers who lose weight.
The fact that the company has been in operation for more than ten years provides solid evidence that it is not a fraud.
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How Does HealthyWage Make Money?
HealthyWage makes most of its money via bets that its users lose. The additional source of income of HealthyWage is paid sponsorships, administrative fees, and the sale of aggregated data to businesses.
Let’s take a deeper look at each of these in the following section.
Betting
HealthyWage generates the vast majority of its revenue by wagering against its users.
When a user loses a bet, HealthyWage makes money. The system maximizes profits by calculating chances correctly and still providing tempting payment incentives.
The company posts numerous success stories that inspire its users by their own motivation and their own inspiration.
HealthyWage desires that its users succeed (up to this point, nothing contradictory has emerged), but it also has financial incentives to ensure that not all of them succeed.
Human nature (laziness) or external circumstances take care of this. Several customers complained that the company could not return their winnings even after being involved in severe incidents that prevented them from participating.
Paid Sponsorships
As previously indicated, HealthyWage launches its weight loss challenges in collaboration with several corporate partners.
These partners pay HealthyWage for organizing these challenges. An employer who contributes to an employee’s health insurance scheme will find this extremely useful. The healthier their employees are, the less insurance they need.
Data
When you use HealthyWage to lose weight, you burn many calories and generate a lot of data.
You need to enter information about your age, weight, height, and location to participate. Also, the app keeps track of whether the user has achieved success with their weight loss journey.
HealthyWage can then sell the aggregated data to advertisers. It does not reveal any personal information about the user, such as their name or address.
Advertisers, on the other hand, may benefit from aggregated data. For example, you might want to know how many males are overweight or the average BMI for females in their 30s.
Administration Fees
HealthyWage charges a 25% administration fee on any money won by users. HealthyWage keeps $250 if a user wins $1,000 in cash prizes.
How Do You Get Paid by HealthyWage?
You’ve won your bet, and you wonder, “Now what?” You are awarded HW points for your wager. One dollar is worth one HW point.
When you win $500.00, you are eligible for 500 HW points. Your account will be credited the same day as your prize announcement.
Once these HW points are in your account, you can perform a few things. They are as follows:
HealthyWage’s website states that a paper check issuing fee is $7.00.
PayPal deducts a tiny percentage from HealthyWage payments, but HealthyWage does not charge any fees for PayPal payments. Therefore, HealthyWage does not participate in this transaction, as PayPal is the only party involved.
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Success Story of HealthyWage
HealthyWage, a New York City-based company, was founded in 2009 by David Roddenberry and James Fleming.
The two founders both have extensive experience in the commercial world and the legal system before starting the company.
Roddenberry, a Harvard Law graduate, worked at the Boston Consulting Group and The D.E. Shaw Group, helping develop a $45 billion hedge fund.
He then founded JoltEdge, a company dedicated to asset management. Unfortunately, the company was sold six months after it began operations.
Fleming graduated from the University of Minnesota Law School with a J.D. Following graduation, he worked as a clerk and associate for the U.S. Court of Appeals and private law firms.
Paul Weiss, a New York-based law firm, offered him a partner track while working on HealthyWage.
A year after it was first conceptualized, HealthyWage was launched at TechCrunch 50 in September 2009. Roddenberry presented the idea to a jury that included Marc Andreessen, Tony Hsieh, and Marissa Mayer.
Several similar programs, such as HealthRally and StickK, were also made available to the public.
HealthyWage emerged victorious despite increased competition. All of this was accomplished without any venture capital funding.
Furthermore, the company also engaged in some brilliant marketing strategies along the way. For example, the company awarded Rob Kardashian $50,000 in January 2019 to reach a specific weight loss target.
HealthyWage has distributed more than $50 million in cash rewards to users. Additionally, the company employs about 50 people.
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Key Takeaways from HealthyWage Business Model
HealthyWage is one of the nation’s premier health and wellness firms for using rewards to motivate people to lose weight.
HealthyWage cares about the weight loss of its customers. However, it will be profitable only if most users fail to achieve their stated goals.
HealthyWage also accepts sponsorship income from companies that wish to keep their employees healthy and productive. Additionally, it sells anonymous user data to advertisers.
