17 Jul 2011

Foursquare Ups The Price Of Custom Badge Program, $75K Commitment Required

Foursquare has been working closely with businesses to expand their merchant program and develop a steady stream of revenue. They recently reached 500,000 merchant accounts and launched a merchant API to make it easier for businesses to change and update specials. They even began to partner with deals services like LivingSocial, and now they’re making big moves with their custom badge program.

According to ClickZ, the location-based service is raising their custom badge price from $10,000 to $25,000 per month and requiring a 3 month commitment — that’s $75,000 total. However, Foursquare typically waives the fee for non-profits like American Red Cross or the New York Public Library. Starbucks and the History Channel as well as other popular brands have used custom badges in the past at the lower price point.
Still, many are wondering if the new price will cause companies to lose interest in custom badges. Tom Rowe, a tourism marketer for Visit Baltimore, decided to not get a custom badge once the price increased. He previously had interest in getting a custom badge to help draw tourists to areas outside of the Inner Harbor district.
Foursquare refused to comment on how many badges brands get for the increased price and it’s uncertain when the price will officially be raised.
Do you think a higher price would deter brands from utilizing Foursquare’s program?

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