- Perfect Blockchain fit: exploits Blockchain-based trust for managing affiliate commercial relationships
- Strong marketing campaign
- Modest hard-cap market cap
- Team has a relatively low profile
The Hoqu pre-sale offers a 40% bonus on the sale rate. The sale rate itself is tiered and offers a bonus rate which begins at 20% and declines over the sale period.
With annual growth that generally register anything from 15% to 20%, online sales continue to grow at a healthy rate and are projected to do so into the foreseeable future. And with a staggering 15% of these sales thought to be generated by affiliate marketing, the Hoqu proposition is taking aim at a strong industry.
However, it is an industry that is also in desperate need of reform. Affiliates, who promote products and services on behalf of businesses (referred to by the more general term of advertisers in the Hoqu white-paper), have been known to engage in a range of manipulative campaigns to inflate their value – it is thought that over 50% of all internet traffic today is performed by bots in an attempt to manipulate web traffic audience figures.
Advertisers themselves have been known to engage in a range of manipulative accounting techniques to minimise the commission that they are expected to pay to their affiliate partners.
Between affiliates and advertisers sit intermediaries – the affiliate networks – which manage the relationships between them, charging commission to the former and inflated sign-up rates to the latter, and often over-stating their own value to advertisers as they do so.
There is also a clear need for improvement within the industry in relation to how it manages its payouts which can drag out for up to three months in many cases.
The Hoqu proposition plans to take aim at all of these issues by creating a blockchain-based platform that will offer the ability for these three major groups to collaborate in a transparent manner with payments managed by smart contracts for verifiable, performance-based actions that will stimulate trust and also allow for immediate payments.
The platform also offers a dispute-resolution mechanism – or ‘audit centre‘ – that serves as fall-back for parties that want to challenge questionable actions by marketing partners.
The Hoqu proposition appears to be offering a new model to affilate relationship management which the industry has been crying out for since its inception.
Hoqu proposes not only an affiliate network, but serves as a creator of affiliate networks
Whilst Hoqu plans to build an API that will allow affiliates and advertisers to leverage each other as partners directly within the Hoqu platform, it also offers a SDK that will allow others to build their own affiliate network niches which leverage the Hoqu ecosystem as a launchpad for their own affiliate business model.
With fraud currently calculated to be in the region of $16 billion USD, representing an estimated 6-7% of total revenues within the affiliate marketing space, Hoqu’s use of a smart contracts-managed affiliate model appears to make for a perfect Blockchain fit with the potential to bring genuine disruption to the existing industry.
A modest hard-cap that numbers in the low millions added to an aggressive marketing strategy appears to be making the proposition a highly interesting one.
Backed up by a large team and with a business model which demonstrates clear token value, the proposal now appears to boil down simply to a question of execution – if the engineering aspects can live up to the standards so far demonstrated by the project’s marketing team, affiliate marketing as an industry is set for some much-needed reform.
Hoqu is hard-capped at $14.8 million dollars.