How Does SnapDocs Make Money? The Business Model!

While this app is quite useful and has some interesting features, its underlying model may still be unclear to most people.

SnapDocs makes its money from two sources: (1) charging companies for using their signing service, and (2) charging companies for each time someone uses their service to sign documents.

We identified what makes SnapDocs different from other document management systems and why we believe our solution delivers real business benefits to our customers. Now let’s look at how we make money while providing real business benefits.

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Business Model of SnapDocs

SnapDocs is an online service that allows people who sign documents to easily create their own signatures. They offer a free version, but if you want to save time and effort, they also provide paid plans.

The main purpose of SnapDocs is to help signing agents connect with potential clients.

It’s basically a digital closing platform that connects borrowers and settlement agents. Through this, both sides can efficiently close deals and refer each other to new clients.

SnapDoc offers a unified platform for business and personal use that allows people to manage their files from anywhere. It also gives them the ability to share files and grant others permission to view and edit them.

Most actions can be done remotely, so the process is quick. SnapDocs has several AI-powered features and tools to help you discover potential issues before they become major ones.

What Features Does SnapDoc Not Offer?

SnapDocs doesn’t provide any services related to titles. It isn’t a real estate agency; therefore, when people sign documents through the platform, they aren’t sent by SnapDocs but rather by the person who collected them.

Instead, the platform’s real estate agency or the signature services sends the offer. The real estate agency or the signature services also assigns the order to an attorney or signer.

Furthermore, the platform does not provide any legal advice regarding representation, management, and supervisory activities. Any notaries, attorneys, signing services, and title companies must take responsibility for these actions themselves.

Furthermore, SpanDocs is an application development platform. This implies that any signings performed through the software do not entail SnapDocs. Collaborative and mediating procedures among the parties help settle any disputes over the signing methods. The platform is just a resource that streamlines the signing process.

A Brief History of SnapDocs

SnapDocs was started in 2012 by Aaron King, who had previously worked in realty. At the age of 18, he got his notary license.

The goal of the company was to simplify the complicated paperwork processes during a house sale by keeping everyone in the loop.

Mortgage loans involve several different entities. They include banks, credit unions, real estate agencies, loan officers, brokers, escrow services, appraisals, title searches, and insurance firms.

Collaborating among all the involved entities becomes complicated when dealing with paperwork. SnapDoc provides an extension that allows everyone to easily and efficiently collaborate on buying and selling a property.

SnapDoc’s product helps people organize their paperwork efficiently and effectively at an affordable price.

To date, the platform has helped close over two million transactions annually. Its popularity comes from its ability to provide a unified, scalable approach for all types of closings, including wet, hybrid, and full eClosing options for any type of business.

How Does SnapDocs Work?

With SnapDocs, notary services can discover new clients by creating accounts for them on the platform. They will then receive notifications when potential clients visit their location.

Users create profiles by filling them out and adding documentation to support their statuses. They can also turn on the notification settings so they receive alerts when there are nearby signing opportunities. The system works in the following way:

Step 1: Companies Create an Order

The first step of creating a contract involves selecting a title for the document, choosing an escrow company, and having the parties sign the agreement. After this, companies can use SnapDocs’ advanced searching capabilities to locate nearby notary services.

The signer can choose a particular notarization company, and then receive an email alert if one becomes available. Notarizations may be sent directly to the customer or to the designated recipient. Each notarization includes a unique identification number.

If a notary receives an alert from the Notify Me service, she stops receiving them automatically. But if a company wants to stop receiving notifications, it can do so by going into its account settings.

Step 2: Companies Choose the Notary They Want To Work With

When the notarization service provider receives the request for notarization, they must respond within 24 hours. However, there is no guarantee that the notarization will be assigned to them first. If they respond sooner than 24 hours, then they may receive the assignment before the next person who requests notarization.

Once the order has been submitted, the platform will send a notification confirming the assignment. Any communication between the notary and the customer must be done through the platform.

Step 3: Send documents via SnapDocs

The platform allows companies to exchange documents and keep up with their client’s progress. It also provides a tracking system for each client.

Users can view the order details by clicking on the Order button. They can also see whether the file is available for download.

Notaries use SnapDocs to write messages or drop comments on documents for companies they want to get paid for. If the companies don’t respond within 24 hours, the platforms provide their contacts so that notaries can reach out to them directly.

Step 4: Adding an “Add Signature” button

After completing the signature verification process, the notary or agent can mark the order as successful. This informs the business of the success of the order.

If the company asks the notary for scans back, they can be sent securely through the SnapDocs Platform.

Once the notary has added the signature, the responsibility for closing the order lies with the business. It will then send an email notification to the customer.

SnapDocs will generate invoices for notary services so they can be paid by clients once the job has been completed.

How Does SnapDocs Make Money?

SnapDocs charges its clients for each order they create, plus an additional fee per document downloaded. The client also pays for every search performed by the notarization service provider.

With SnapDocs, you can create and send invoices, accept payments, and view settlement reports from anywhere at any time. You can also use the software to manage users, show company logos, and exchange files easily.

SnapDocs is an online platform that helps real estate agents and brokers close deals quickly and efficiently. It allows them to communicate with clients and vendors in one place, and streamline their workflow.

Order Creation Fees

When signing companies use SnapDocs, they get paid a flat fee per document created by their company.

Notary Search Fees

SnapDocs gets paid every time its clients hire a notarized document from them.

Document Download Fees

SnapDocs charges the signer a small fee for each document they download.

Subscriptions

SnapDocs offers two different product suites: SnapDocs Basics and SnapDocs Enterprise.

Both plans allow you access to professional services, including notaries, vendor documentation, analytic software, and accounting software.

SnapDocs Basic

Features include:

Access to more than 600,000 professional signers
Notary outreach Automator
Access to vendor documentation
Accounting and Analytics tools

The basic package also costs $15 per order, but the service also adds another $5 per order charge.

SnapDocs Enterprise

A toolkit for automating the entire scheduling process
Snapdocs Verification Certifies that Notary Respondents Have Credentials
You can create dashboards for each client, region, or team so they can see different sets of reports at once.
Automated integration of APIs and ResWare
Using the VendorPay mobile app, title companies and signing service providers can easily connect with notary signing agents.

The platform itself costs $25 per month, but there is no charge for orders placed through the platform.

SnapDocs – Funding, Valuation & Revenue

Techcrunch reported that SpanDocs has raised $60M in its latest round of financing. More than 130,000 professionals across the US use SpanDocs for their digital mortgage processing needs. SnapDocs uses SpanDocs to manage the entire mortgage lifecycle from origination through closing.

Y Combinator Continuity was responsible for directing the Series C round of funding. Investors included Sequoia Capital, Founders Fund, F-Prime Capital Partners, Maverick Ventures, and Document Signing Inc.

Real estate investors were able to benefit from the coronavirus’ impact on the real estate market by investing during the pandemic.

The growth in sales led to an increased usage of the SnapDocs Platform. As a result, around 170,000 sales were completed using the software application. This amounted to approximately 50 million dollars in transaction fees. Also, TechCrunch reported that 15 percent of the deals completed on SnapDocs were done so in August 2020.

Nowadays, the platform has closed over $1.5 million worth of contracts each year, which is twice the number they were doing before the pandemic.

The SnapDocs software has been used by more than 70 percent of settlement agencies in the U.S., including Bell Bank, LeaderOne Financial Corp., and Georgia United Credit Union.

After seven months of raising $60 million in series B, the company raised an additional $150 million in its series D round.

As a result, the platform has been able to improve its features which now account for approximately 20 percent of U.S. residential sales.

Tiger Global led the $150 million Series D round of financing in May 2021. Other investor includes Sequoia Capital, Y Combinator’s Sam Altman, F-Prime Ventures, Maverick Venture Partners, Alkon Ventures, and Wellington Management.

The company has a market cap of over $1.6 billion after this round of funding.

Is SnapDocs Profitable?

Snapdocs’ business model allows everyone involved in a transaction to sign electronic contracts online, eliminating the necessity for piles of paper.

According to Comparably’s estimates, the average estimated annual salaries at SnapDocs are about $131,143, or roughly $63 per hour, excluding bonuses. However, according to Comparably’ estimates, the median annual salaries at SnapDoc are about $136,157, or roughly $65 per hour.

With SnapDocs, you can become a signatory agent without having to leave your house. You don’t need to be a full-time or even a part-timer. All you need is a computer and an internet connection.

Conclusion: How Does SnapDocs Make Money

There’s so much info here! But if you take anything away, it should be this…

Snapdocs is an amazing company that solves a big pain point in the real estate industry. It has tremendous upside and is rapidly expanding.

If you’d like to know more about SnapDocs or if you have any other questions, feel free to contact us. We’re always happy to talk!