Founded in 2012 by two Harvard graduates, SmartAsset aims to help consumers make smarter financial choices. It provides tools for comparing mortgages, estimating property taxes, calculating insurance costs, and finding out whether a car loan would be cheaper than renting one.
They believe that everyone who makes a financial choice should be able to base their decisions on facts rather than emotions.
But how do they generate revenue and what’s the company’s business model? If you’re curious about these questions, read on! This article explores how SmartAsset makes money and what its monetization plan is.
SmartAsset generates revenue through lead gen. They provide personal financial resources, calculations, and expert-curated content to site visitors. These visitors can contact financial advisors on the platform to get personalized advice. The services are free for consumers but financial advisors pay SmartAsset for contacts made.
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About SmartAsset
SmartAsset helps consumers connect with financial advisors by providing access to unbiased ratings and reviews from real clients.
That’s why they stress their mission of helping people learn how to invest wisely by providing them with educational content. They have over 10 million monthly views!
Business Model of SmartAsset
Helpful Guides
SmartAsset has a variety of in-detail guides for professionals who need some guidance when it comes to the more complicated aspects of their lives.
For example, tools designed to help people decide if they should buy or rent a house based on their personal financial situation have been game-changers for the platform’s user base.
They also provide more detailed, step-to-step content for people who aren’t familiar with investing but want to learn more about it.
These guides also include tips for investing and a wealth of information normally available only through paid professionals.
Reviews and Comparisons
It also offers a variety of comparison and review articles on different types of financial products including banks, credit card companies, mortgage brokers, and more.
They also provide great comparison guides for choosing the best bank accounts to suit your specific requirements.
These reviews and recommendations come from trusted and reputable sources who have conducted extensive research so you don’t have to.
Life Insurance Quotes
SmartAsset even provides free life insurance quotes so that people can get the best value for their dollar.
Identify your specific insurance requirements by entering them into their quote comparison service, and within minutes receive an individualized policy that best suits your preferences.
Not quite sure what you’re looking for? They’ve got you covered there, too. Their informative Life Insurance Buyers’ Guides break down everything from how much coverage you may need, for how long, and how much it will probably cost you.
Innovative Technology
Instead of using a traditional financial fortune-telling method, SmartAsset uses an innovative automated financial modeling technique.
It converts raw statistics into easy-to-understand financial projections.
For example, consider Joe who wants to retire but doesn’t want to spend too much time doing so. Knowing that financial planning can be an arduous and time-intensive process, Joe uses SmartAsset’s automated financial modeling tool to get started.
It’s easy. You just need to ask a few questions.
After completing the AFM system, the software calculates and projects Joe’s foreseeable financial landscape using this and other relevant data.
With AFM, Joe is now better prepared to retire. And so are others who use the app.
Millions of people use SmartAsset’s free tools, but that’s just one aspect of what makes the site what it is today.
How Does SmartAsset Make Money?
SmartAsset earns revenue from providing a variety of useful financial tools at the click of a button, so they claim to be the most popular site for viewing personal finance info online.
While the software offered by the company to its customers is completely free, SmartAsset makes some of its revenue from selling financial services to interested users.
You can find paid advertising on the pages of the money manager’s money advice and guides. These paid ads are clearly labeled so that readers know they are not sponsored content.
With its new product, SmartAsset has added another tool for helping people understand their finances better. It’s called SmartAdvisor.
While this program may benefit both the advisor and his/her clients, it’s been shown to be extremely profitable for the company. As an example, one advisor was able to increase his business by $1 million in just six months.
For a small monthly charge, the company offers its services to help grow the business of both new and seasoned financial advisors.
Instead of delivering prospects to brokers, the firm matches them up with ideal clients who meet certain criteria. It even connects these clients with potential investors so they can generate bigger revenues.
The company has also teamed up with some powerful investors like Focus Financial Partners, Peterson Venture Capital, New York Life Ventures, and more!
By launching an affiliate marketing campaign, the company was able to increase its customer base by reaching out to influencers who could help them spread awareness for their products.
SmartAsset Funding, Valuation, and Revenue
Since its Series C funding, SmartAsset has seen its revenues increase tenfold.
A new feature has been added to the SmartAdvisor platform called Live Connections. With this feature, an advisor can connect with a team of experts to generate leads for him/her. This reduces the time spent researching prospects by more than 50%, which drives the bottom line even further!
Backing from an investment firm, SmartAsset raised over $110 million for their Series D round. The company has now been valued at one billion US$ (June 2017).
This huge marker placed the company at the head of the game and established its reputation as a powerful player in the market.
SmartAsset is a successful business. Its valuation reflects its potential for continued growth and success.
History of SmartAsset
Founded in 2012 by Michael Carvinno, the CEO, and Philip Camillieri, SmartAsset was destined for a quick upward trend.
One of the reasons why they’re so popular is because they emphasize the importance of togetherness.
Why Is SmartAsset so Successful?
They Empower Users
SmartAsset provides users with useful resources that help them make smart financial decisions.
Providing a variety of useful financial tools, including savings calculators, helpful guidebooks for managing your finances during a pandemia, or informative comparisons between banks makes difficult financial choices easier to handle.
They Rise and Adapt
They’re constantly looking at new ways to keep their business ahead of the curve.
They’re able to maintain their current positions because they consistently create new products and services that save people a lot of effort and hassle when it comes to managing their finances.
For example, Forbes gave the app a positive review, saying that “The smooth interface makes each calculation seem easy”, but noted that “Persistent innovations set them apart.”
They Collaborate
They’re trusted by many companies, including some big names in the industry, such as the Wall Street Journal, Yahoo!, Business Insider, and more
It has also teamed up with some big-name investors, including Citigroup Venture Capital, New York Life Ventures, and Transamerica Ventures
It also works with small businesses, helping them develop effective marketing campaigns for their products and services.
They Trust Each Other
They believe they provide accurate insights regardless of whether you’re just starting out financially or already have some experience managing your finances.
They’re extremely confident in their ability to deliver results, and they’ve got millions of users using their service every single day.
Data Fuels Their Decisions
Analyzing large amounts of data using highly analytical methods, the company promises accurate results for each individual customer. Its accuracy in delivering on its promise is what enables them to steadily grow its business.
These core values guide both the company as a collective and each member individually. In 2020, Forbes named SmartAsset one of America’s best startup employers. It was listed as number seven out of ten companies in New York City. As a result, SmartAsset has become a highly collaborative, fun place to work.
A firm that promotes drive and motivation among its employees will be able to achieve success.
Is SmartAsset profitable?
SmartAsset consistently progresses toward larger and better things.
There may be questions about whether the company s strategy will last for long periods of time. However, the company was announced as one of the top 100 financial technology companies by The Financial Technology Report earlier this month.
CEO and co-founders Mike Carvin and David Goss have no intention of slowing down. They plan to grow their company’s headcount by 75 percent next year.
He says that by investing the additional capital they earn from their new venture, the business will be able to invest in building the web’s best personal finance resource and enhance its ability to connect consumers to advisors across the US.
If that’s any indication of the future direction of the company, SmartAsset is clearly headed for success.
Conclusion: How Does SmartAsset Make Money?
SmartAsset is an online financial planning tool that helps people make the most informed financial choices for themselves. It provides unbiased, customized advice from its team of experts.
The business operates through three segments: Personal financial services, analytics, and automation.
SmartAsset has been around for several decades and has built up quite a reputation in the financial world. It has an A+ rating with BBB and has grown into one of the most popular financial tools available online. It has a network of financial advisors who offer customized portfolios to help clients achieve their goals.
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