---
created: 2026-03-12
tags: [business, revenue, strategy]
related: ["[[03-Projects/The $50 App]]", "[[06-Business/Revenue Pipeline]]", "[[06-Business/Competitors]]"]
---

# Business Model

## The Pitch
RateRight is a **$50 flat-fee construction hiring marketplace** for Australia. Contractors post jobs, workers apply, and when a hire happens, the contractor pays $50. Workers pay nothing. Ever.

## How It Works
1. Contractor signs up → posts a job (trade, location, dates)
2. Workers see the job → apply through the app
3. Contractor picks a worker → hire confirmed
4. Contractor pays **$50 flat fee** per successful hire
5. Worker pays **$0** — no fees, no deductions, no commissions
6. Hostels get **$0** — we're doing them a favour by connecting residents to work

## Why $50 Flat Fee — FOR LIFE
- Undercuts competitors by **85-95%** (Sidekicker charges 22%, agencies charge 15-30%)
- Simple, predictable pricing — no percentage calculations
- Low enough that contractors don't think twice
- High enough to be sustainable at scale
- **THE KILLER DIFFERENTIATOR:** $50 FOR LIFE — workers stay a week or 30 years, still only $50. A 5-year worker costs agencies ~$118,000 in markup. We charge once. That's it forever.

## Current Numbers (2026-03-12)
| Metric | Value |
|---|---|
| Contractors registered | 304 |
| Workers in marketplace | 0 (critical gap) |
| Hot leads | 1 (score 85) |
| Warm leads | 9 (uncontacted) |
| Verified hires | 3 (Sydney) |
| Monthly burn | ~$775 |
| Cash in bank | $24,408 |
| Runway | ~31 months |

## Unit Economics
- **Revenue per hire:** $50
- **Breakeven:** 11 hires/month at $65 blended cost
- **Target:** Scale to 50+ hires/month for sustainable growth

## Key Differentiators
- **$0 worker fee** — unique in market (competitors charge workers or take %)
- **Construction trades specialization** — not general labour
- **AI-powered matching** — 8-agent fleet handles operations
- **Voice-first features** — AI phone receptionist qualifies inbound leads
- **5-minute matching target** — faster than any competitor

## The Problem
304 contractors but 0 workers = marketplace is empty. Can't complete hires without workers. Worker acquisition is the #1 priority.

See [[06-Business/Revenue Pipeline]] for current lead status and [[06-Business/Competitors]] for competitive positioning.