SnapDocs enables agents, notaries, title companies, borrowers, and lending firms to sign and exchange documents with their clientele. But while this app is quite useful, the business model behind it might still be unclear for the public.
SnapDocs makes money revenue by charging companies every time they use signing services on the platform. Moreover, SnapDocs charges fees for document download and notary searches associated with every order.
We took the time to identify what makes SnapDocs unique and valuable for its users. Let’s explore who the target customer is and how SnapDocs makes money while delivering real value.
Business Model of SnapDocs
SnapDocs is a digital platform for signing services, title companies, and signing agents. Businesses and mortgage industry professionals also use this platform to manage closings. It is entirely free to use for signing agents and notaries.
The platform does not have a ‘premium’ listing account. The primary objective of SnapDocs software is to help signing agents find ideal signing opportunities.
It is essentially a digital closing platform that unites lenders and settlements. With this, both parties can effectively handle their closings in an optimized manner. In addition, SnapDocs enables its users to increase opportunities for referrals for their shared customer, which is the borrower.
SnapDoc extends a unified platform in the cloud that enables businesses and individuals to handle various documents. The program also provides data access to relevant parties and grants users the authority to flag or approve documents.
All actions can be performed remotely, thus making the process swift. SnapDocs has various AI-powered features and analytics to assist users in discovering potential problems at an early stage.
What Features Does SnapDoc Not Offer?
SnapDocs does not provide signing or lending services. The platform is not registered as a title company. Therefore, when users collect the signing from the platform, it is not sent by SnapDocs.
Instead, the platform’s title company or the signing service sends the signing offer. The title company or the signing service also assigns the order to a notary or signing agent.
Additionally, the platform does not cover representation, management, and supervision of users. All notary signing agents, attorneys, signing services, and title companies account for their initiatives and communication with other users.
Moreover, SpanDocs is a software service platform. This means that any signings carried out using the software do not involve SnapDocs. Collaboration and mediation between the parties help resolve all conflicts over the signing processes. The platform is merely a source that streamlines the signing processes.
A Brief History of SnapDocs
SnapDocs was founded in 2012 by Aaron King. He has a background in real estate and obtained his notary license at the age of 18.
The idea behind the platform was to simplify the complex paperwork processes during a home’s purchase. The method of buying a home requires all the involved individuals to stay in the loop so that the deal can close.
The mortgage alone involves several institutions and authorities. In addition, brokers, agents, sellers, inspectors, appraisers, insurance firms, and title companies are also part of the process.
Therefore, the collaboration between all the parties can become complicated, especially during the management of paperwork. SnapDoc extends a solution that enables all individuals to quickly and effectively work together to buy and sell a house.
SnapDoc’s solution has helped numerous users manage paperwork quickly and conveniently. The tool is not only practical, but it is also quite economical.
So far, the platform has facilitated more than 2,000,000 closings a year. Its fame can be attributed to the fact that SnapDocs provides a unified, scalable approach to all types of closings. These include wet, hybrid, and fully eClose solutions for anyone who needs them.
How Does SnapDocs Work?
The design of the SnapDocs solution allows it to assist notaries in discovering signing opportunities in their area. To start working with SnapDocs, notaries will be required to create an account on the platform.
Users fill out details for their profile and add documentation to support their status. Additionally, they can also turn on the notifications to get alerts for nearby signing opportunities. The process works in the following ways:
Step 1: Companies Create an Order
The first step of the process requires a title, escrow, and signing companies to create an order. Following this, companies can search through SnapDocs to find notaries in their area. The platform’s search algorithm provides a detailed list of notaries within the set mile radius from the signing location
The signing companies also have the option to select a specific notary for their order. Although, they can also send out notifications to find available notaries through the platform. The platform’s notification system has assigned ranks to notaries. Those ranked higher are notified earlier.
If a notary responds to the notification, the system stops sending the alerts. However, signing companies also have the power to cease or start the alerts manually.
Step 2: Companies Choose the Notary They Want To Work With
Once the notary responds to the notification, the decision to assign the signing lies in the hands of the company. There is no system of first-come, first-serve. Although responding earlier does place the notary at an advantage.
If the company chooses to work with the notary, the platform will send an email confirmation. After the order is assigned, the notary and company can communicate via emails or SnapDocs.
Step 3: Exchange of Documents Via SnapDocs
The signing company and the notaries can use the platform to exchange documents and track order status. In addition, the platform includes a dashboard feature, which has a list of all the orders the user is working on.
Users can check the order status by clicking on order. This step can also reveal any additional information that the user must abide by. For instance, the order tab can also tell the user if the document is available for download.
The notaries also directly communicate with the company by writing a message or dropping a comment. In case the company can’t respond via SnapDocs, the platform also provides the firm’s contact information to help notaries directly call or email the company.
Step 4: Adding a Signing Status
Once the notaries or signing agents complete the signing processes, they can update the signing status to the order. This step notifies the company regarding the success of the signing order.
In some cases, the company may ask the notary for scan backs. Notaries can then safely send all the relevant documents through the SnapDocs platform.
After the notary adds the signing status, the rest of the responsibilities lie with the company. The company will close the order.
SnapDocs will automatically create an invoice that allows notaries to receive payment for their jobs when the order closes.
How Does SnapDocs Make Money?
SnapDocs charges the signing companies for each order they create. In addition, the platform charges the signing company for every document downloaded. The signing company also pays every time it searches for a notary through the platform to complete the job.
The cost of using SnapDocs can vary depending on the document you need to prepare. The platform works with lenders and settlements, borrowers, signing services, and title companies. Lenders can use the platform to manage users, display branding information, and exchange documents conveniently.
SnapDocs is also used to make settlements and manage digital closings. This can save signing appointment time, create a portal for communication, and keep all the parties in the loop.
Order Creation Fees
When signing companies sign with SnapDocs, they pay a flat rate for every order they create.
Notary Search Fees
SnapDocs get paid every time their signing company client hires a notary through their platform.
Document Download Fees
Snapdocs charges the signing company a small fee for every document downloaded.
Subscriptions
SnapDoc presents users with two distinct Product Suites. The suites include SnapDocs basics and SnapDocs enterprise.
Both the plans allow access to signing professionals and include a notary outreach Automator. They also offer access to vendor documentation, analytics, and accounting tools.
SnapDocs Basic
Features include:
- Access to more than 60,000 signing professionals
- Notary outreach Automator
- Access to vendor documentation
- Accounting and Analytics tools
The basic package also charges $15 per order, and the platform also charges an additional $5 per order fee.
SnapDocs Enterprise
Features include:
- Access to more than 60,000 signing professionals
- Notary outreach Automator
- Access to vendor documentation
- Accounting and Analytics tools
- Automation suite to execute every stage of the scheduling process on time
- SnapDocs Verification to certify that notaries responding to the order have verified credentials
- Teams feature allows companies to divide their SnapDocs dashboard into different groups by clients, regions, and office teams
- Automated integration of APIs and ResWare
- VendorPay application enables title companies and signing services to access notary signing agent vendors through ACH
The enterprise package charges $20 per order, and the platform also charges an additional $5 per order fee.
SnapDocs – Funding, Valuation & Revenue
| Date | Amount Raised |
|---|---|
| May 2021 | $150 Million |
| October 2020 | $60 Million |
| November 2019 | $25 Million |
| November 2017 | $15 Million |
| March 2014 | $3 Million |
TechCrunch reports that SpanDocs raised $60 million in the latest equity funding. In addition, more than 130,000 professionals in the real estate industry use the platform. SnapDocs’ use covers digital management of the mortgage process and paperwork required in home purchase and selling processes.
YC Continuity directed the Series C funding. The leading investors were Sequoia Capital, F-Prime Capital, Founders Fund, Lachy Groom (previously known as Stripe), Maverick Ventures, and DocuSign.
The funding followed the pandemics’ influence on the real estate market. August 2020 saw the crowning in home sales in the United States.
The increase in sales led to increased use of the SnapDocs platform. As a result, almost 170,000 sales closed using the software program. This amounted to approximately $50 million in transactions. TechCrunch also revealed that 15% of the deals carried out on SnapDocs were closed in August 2020.
Now, the platform closes around 1.5 million deals per year, which is twice as much as the closing rate in the pre-pandemic times.
The SnapDocs platform also gained popularity among more than 70% of settlement agents in the United States. In addition, renowned institutions, including Bell Banks, LeaderOnce Financial Corporation, and Georgia United Credit Union, use the platform.
Seven months after attaining $60 million in series C funding, the platform gained another $150 million in its Series D Funding.
The success encouraged the platform to enhance its features. Currently, around 20% of real estate transactions in the US use this platform to make transactions, bringing in over $60 billion in mortgage value.
Tiger Global led the Series D round of funding in May 2021. Other investors included Sequoia, Y Combinator, F-Prime, Maverick, Alkon, and Wellington Management.
The company has a valuation of over $1.5 billion following this round of funding.
Is SnapDocs Profitable?
Snapdocs has a profitable business model that allows everyone involved in a real estate closing to sign documents electronically, eliminating the need for stacks of paperwork.
According to Comparably, the average estimated annual salary at SnapDocs is around $131,143, which amounts to nearly $63 per hour, including the base salary and bonuses. However, the estimated annual median salary at SnapDocs is around $136,157, i.e., $65 per hour.
Using SnapDocs is also profitable for notaries and signing agents. According to the NNA’s 2020 Notary Survey, more than half of all remote notaries earn around $2000 monthly or more. This number includes both full-time signing agents and part-time signing agents.
Conclusion: How Does SnapDocs Make Money
There’s a lot of information in this post—but if you take anything away from it, it should be this:
Snapdocs is an incredible company that makes money by solving a huge problem in the real estate industry.. It’s a business that has real potential to provide benefits for millions of people, and it’s growing quickly.
If you want to learn more about SnapDocs, or if you have any questions, don’t hesitate to reach out. We’re always happy to chat!
Thanks for being cool enough to read this far.