nicolas leroy

Snooth, social shopping site for wine

April 08, 2008

I have discovered Snooth, a social shopping destination for wine lovers, by reading an interview of its CEO on a marketing blog. Snooth is a young site – February 2007 – that describes itself as:

[…] the world’s largest and most comprehensive wine database, featuring millions of reviews and hundreds of thousands of wines. We make it easy for wine lovers to find better wine, seamlessly purchase wine, and enjoy a community.

As a registered user on Snooth, you can search wines, rate wines, manage your wish list, add a missing wine, and also compare prices on US-based shops. Indeed, the price comparison service is the main revenue generator for Snooth, as explained in the interview:

Have you thought about your business model yet? I’m assuming so, so tell us a bit about it.
We get paid on a per click basis for referrals we make to partner merchant stores.

We have over 1,000 partners at this point. Out big push at this point is partnering with stores in the major markets outside of the US.

If you’re looking at an ad-supported model, how are you going about it? Do you have in-house ad sales? Using a rep firm? What are the challenges that you’re facing with getting ad dollars?
I believe that everything is an ad. We don’t run banners, we don’t accept paid positioning, or branding of pages, however, we have a pay-per-click business model. You can’t buy a top slot in the search results, but once a user has found a wine they like, the merchant can buy a price listing on the corresponding “buy it now” page. To me that’s an ad for that merchant.

The big difference is that we are only paid on referrals so it’s simple for a merchant to evaluate the performance of their listings.

The execution of Snooth is really good: from the page design to the usability, the site is a perfect example how a nice combination of social shopping + price comparison services can be successful on a niche market.

2 commentaires

on Apr 09, 2008 / 1pm
Interesting sorting : By Quality/Price Ratio (i.e :
Unfortunately the algorythm is not optimised (see the 2nd product of this URL, it only has a 2/5 snooth rank --> Not really a quality wine for sure even at 12$ a bottle, I'am not sure I would be willing to buy a bottle nobody seems to find good).

Philip James
on Apr 14, 2008 / 6pm
The Quality/Price ratio (QPR) shouldnt take into account wines with a rating of below 3 (i think). I clicked that link just now and I didnt see anything under 3/5. There's no algorithm at work on the QPR ratio, it just divides the snooth rank by the price, so its a measure of how much snooth rank you can buy for $1.

Nicolas - thank you for the post!