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This question is about Omaze.
How does Omaze make money?
Omaze makes money by taking a percentage of the donations it receives from its users. Omaze normally earns 12% to 20% per campaign. Omaze is not a non-profit and operates as a for-profit business.
It uses the revenue it generates from donation percentages to pay its staff, cover overhead costs, and organize and promote new campaigns. Omaze states that it believes in impact over percentages, in other words, a smaller cut of the donation amount is more impactful than a larger cut of a smaller donation.
Certain campaigns promoted by the company can generate millions of dollars in donations for causes, which also results in significant profits for the company. Many crowdfunding platforms operate with similar business models. Direct competitors of Omaze with similar business models include:
GoFundMe
Charitybuzz
Prizeo
CharityStars
Omaze can also generate revenue by including its own brand in the promotion of certain causes. The company has partnered with big brand names in the past when doing so, such as Coca-Cola. Omaze has also raised over $127 million during eight rounds of venture capital funding.
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