Chatbot Cashflow: Turning Conversations into Currency

Businesses and individuals alike are discovering the potential of chatbots to create new revenue streams, enhance customer engagement, and streamline operations.

This guide will explore how you can leverage chatbots to turn everyday conversations into a lucrative cashflow.

From understanding the basics to implementing advanced strategies, you’ll learn how to make the most of chatbot technology to boost your earnings.

Table of Contents

Understanding Chatbots and Their Potential

Why do you need chatbot for your business right now?

Definition and Types of Chatbots

Chatbots are artificial intelligence (AI) programs designed to simulate human conversation. They can interact with users through text or voice interfaces, providing responses and performing tasks based on the input received.

Types of Chatbots:

  1. Rule-Based Chatbots:

    • Operate on pre-defined rules and responses.
    • Best for simple, straightforward tasks.
    • Limited to the scripts programmed by developers.
  2. AI-Powered Chatbots:
    • Use machine learning and natural language processing (NLP) to understand and respond to user inputs.
    • Capable of handling complex conversations and learning from interactions.
    • Examples include virtual assistants like Siri and Alexa.
  3. Hybrid Chatbots:
    • Combine rule-based and AI-powered approaches.
    • Use predefined rules for simple queries and AI for complex interactions.
    • Offer flexibility and improved user experience.

The Evolution of Chatbots in Business

  1. Early Beginnings:
    • Initial chatbots were basic, rule-based systems.
    • Used mainly for customer service with limited capabilities.
  2. Advancements in AI and NLP:
    • Development of more sophisticated AI algorithms.
    • Improved natural language understanding and processing.
    • Enabled chatbots to handle more nuanced and complex interactions.
  3. Integration with Business Systems:
    • Integration with CRM, ERP, and other business tools.
    • Enhanced ability to provide personalized and context-aware responses.
  4. Omnichannel Presence:
    • Deployment across multiple platforms (websites, social media, messaging apps).
    • Increased accessibility and reach for businesses.
  5. Current Trends:
    • Use of chatbots for e-commerce, marketing, and sales.
    • Enhanced user engagement through personalized interactions.
    • Growing adoption of voice-activated chatbots.

Why Chatbots Are Essential for Modern Enterprises

How Nonprofits Are Using Chatbots to Scale Their Impact

  1. 24/7 Customer Support:
    • Provide instant responses and support at any time.
    • Improve customer satisfaction and loyalty.
  2. Operational Efficiency:
    • Automate routine tasks and queries.
    • Free up human resources for more strategic activities.
  3. Scalability:
    • Handle large volumes of interactions simultaneously.
    • Scale customer service operations without proportional increase in costs.
  4. Data Collection and Insights:
    • Gather data from interactions to understand customer preferences.
    • Use insights to improve products, services, and marketing strategies.
  5. Cost Reduction:
    • Lower operational costs by reducing the need for large customer support teams.
    • Increase profit margins.
  6. Competitive Advantage:
    • Early adoption of chatbot technology can differentiate a business from its competitors.
    • Provide innovative and efficient customer service solutions.

The Economics of Chatbots

Cost-Benefit Analysis of Implementing Chatbots


  1. Development and Implementation:
    • Initial investment in chatbot development and integration.
    • Costs vary based on complexity and features.
  2. Maintenance and Updates:
    • Ongoing costs for maintaining and updating the chatbot.
    • Ensuring the chatbot remains functional and relevant.
  3. Training and Supervision:
    • Training the chatbot using data and feedback.
    • Supervision to ensure accurate and effective responses.


  1. Cost Savings:
    • Reduction in staffing costs for customer support.
    • Lower operational expenses through automation.
  2. Increased Revenue:
    • Improved customer engagement and satisfaction leading to higher sales.
    • New revenue streams through e-commerce, affiliate marketing, and subscriptions.
  3. Efficiency and Productivity:
    • Automation of repetitive tasks.
    • Allowing human employees to focus on higher-value activities.
  4. Scalability:
    • Ability to handle more interactions without proportional increase in costs.
    • Supports business growth and expansion.

Revenue Models for Chatbots

  1. E-commerce Sales:
    • Direct selling of products and services through chatbots.
    • Personalized recommendations and upselling.
  2. Affiliate Marketing:
    • Promoting third-party products and earning commissions on sales.
    • Integrating with affiliate networks and tracking links.
  3. Subscription Services:
    • Offering premium features or content through a subscription model.
    • Examples include content access, advanced support, and exclusive deals.
  4. Advertising:
    • Displaying targeted ads within chatbot interactions.
    • Earning revenue from ad impressions or clicks.
  5. Lead Generation:
    • Collecting user information and generating leads for businesses.
    • Charging businesses for qualified leads.
  6. Transaction Fees:
    • Charging fees for processing transactions or facilitating payments.
    • Common in financial and payment-related chatbots.

Case Studies of Successful Chatbot Monetization

  1. Sephora:
    • Uses chatbots for personalized beauty advice and product recommendations.
    • Increased customer engagement and online sales.
  2. H&M:
    • Chatbots assist customers with fashion advice and style recommendations.
    • Enhanced shopping experience and increased conversion rates.
  3. Starbucks:
    • Voice-activated chatbot for placing orders and payments.
    • Streamlined order process and improved customer convenience.
  4. Domino’s Pizza:
    • Chatbot for ordering and tracking pizza deliveries.
    • Boosted sales and customer satisfaction through easy ordering.
  5. Capital One:
    • Chatbot for managing accounts and financial transactions.
    • Improved customer service and operational efficiency.

By understanding the potential of chatbots and their economic impact, businesses can strategically implement and monetize these AI tools to achieve sustainable growth and profitability.

Choosing the Right Platform and Tools

Platform Selection:

  1. Web-Based Chatbots:
    • Ideal for e-commerce sites, customer service, and lead generation.
    • Easily integrated into websites using platforms like Intercom, Drift, or LivePerson.
  2. Social Media Chatbots:
    • Suitable for engaging users on platforms like Facebook Messenger, WhatsApp, and Instagram.
    • Tools like ManyChat and Chatfuel simplify the creation and deployment of social media chatbots.
  3. Mobile App Chatbots:
    • Best for apps that require user interaction, such as banking, fitness, or shopping apps.
    • Development platforms include Dialogflow and IBM Watson.
  4. Voice-Activated Chatbots:
    • Perfect for hands-free environments and accessibility-focused services.
    • Utilize Amazon Alexa, Google Assistant, or Apple Siri for development.

Tools and Technologies:

  1. Natural Language Processing (NLP):
    • Enables chatbots to understand and interpret human language.
    • Key technologies include Google’s Dialogflow, Microsoft’s LUIS, and IBM Watson.
  2. Machine Learning:
    • Allows chatbots to learn from interactions and improve over time.
    • Frameworks like TensorFlow and PyTorch can be integrated for advanced machine learning capabilities.
  3. API Integrations:
    • Essential for connecting chatbots to various services and databases.
    • Tools like Zapier and Integromat facilitate easy integration with other software and services.

Essential Features for Profit-Generating Chatbots

  1. Personalization:
    • Utilize user data to tailor responses and recommendations.
    • Personalization increases engagement and conversion rates.
  2. Conversational AI:
    • Implement advanced NLP and machine learning to provide natural and engaging interactions.
    • Ensure the chatbot can handle complex queries and context-aware conversations.
  3. Analytics and Reporting:
    • Track interactions, user behavior, and performance metrics.
    • Use analytics to refine strategies and improve chatbot effectiveness.
  4. Multilingual Support:
    • Cater to a global audience by supporting multiple languages.
    • Enhance user experience for non-English speakers.
  5. Seamless Integration:
    • Ensure the chatbot integrates smoothly with existing business systems (CRM, ERP, payment gateways).
    • Streamlined operations and data consistency are critical.

Integrating Payment Systems

  1. Payment Gateway Integration:
    • Integrate popular payment gateways like PayPal, Stripe, or Square.
    • Facilitate smooth and secure transactions within the chatbot interface.
  2. Security and Compliance:
    • Implement robust security measures to protect user data and payment information.
    • Ensure compliance with regulations like GDPR, PCI DSS, and other relevant standards.
  3. User-Friendly Payment Process:
    • Design a simple and intuitive payment flow to minimize friction.
    • Provide multiple payment options to accommodate user preferences.

Monetization Strategies

Affiliate Marketing and Chatbots

  1. Product Recommendations:
    • Integrate affiliate links into product recommendations.
    • Use chatbots to provide personalized suggestions based on user preferences.
  2. Content Delivery:
    • Share affiliate-related content such as articles, videos, or promotions.
    • Earn commissions on clicks or conversions from shared links.
  3. Tracking and Optimization:
    • Utilize tracking tools to monitor affiliate link performance.
    • Optimize recommendations and strategies based on data insights.

E-commerce and Sales through Chatbots

  1. Product Catalog Integration:
    • Sync chatbot with your product catalog for real-time inventory updates.
    • Allow users to browse, search, and select products within the chat interface.
  2. Personalized Shopping Experience:
    • Use customer data to offer personalized product suggestions and promotions.
    • Enhance user engagement and increase sales through tailored interactions.
  3. Order Processing and Tracking:
    • Facilitate seamless order placement and payment processing.
    • Provide real-time order status updates and tracking information.

Subscription Models and Premium Services

  1. Exclusive Content Access:
    • Offer premium content, such as tutorials, articles, or videos, through a subscription model.
    • Attract users willing to pay for valuable and exclusive information.
  2. Advanced Features:
    • Provide enhanced chatbot features and functionalities for subscribed users.
    • Examples include priority support, advanced analytics, or personalized consulting.
  3. Membership Programs:
    • Create membership tiers with varying levels of access and benefits.
    • Encourage users to subscribe for additional perks and privileges.

By carefully selecting the right platforms and tools, incorporating essential features, integrating secure payment systems, and employing effective monetization strategies, you can build a chatbot that not only engages users but also generates significant revenue.

Enhancing User Engagement for Higher Profits

Personalization Techniques

  1. User Profiling:
    • Collect and analyze user data to create detailed profiles.
    • Use information such as past interactions, preferences, and behavior to tailor responses and recommendations.
  2. Dynamic Content:
    • Provide content and suggestions that change based on user interactions and preferences.
    • Use personalized messages, offers, and recommendations to enhance engagement.
  3. Behavioral Triggers:
    • Implement triggers based on user actions (e.g., abandoned carts, repeated visits).
    • Send personalized messages or offers to re-engage users and encourage conversions.
  4. Context-Aware Responses:
    • Utilize context from past conversations to inform current interactions.
    • Ensure the chatbot remembers user preferences and previous interactions to provide relevant and coherent responses.

Utilizing AI and Machine Learning for Improved Interactions

  1. Natural Language Processing (NLP):

    • Use advanced NLP algorithms to understand and interpret user queries accurately.
    • Enhance the chatbot’s ability to handle complex and nuanced conversations.
  2. Predictive Analytics:
    • Implement machine learning models to predict user needs and behaviors.
    • Offer proactive recommendations and responses based on predictive insights.
  3. Sentiment Analysis:
    • Analyze the sentiment of user messages to adjust the tone and content of responses.
    • Address user concerns and emotions effectively to improve satisfaction.
  4. Continuous Learning:
    • Enable the chatbot to learn from each interaction and improve over time.
    • Use reinforcement learning to refine responses and better meet user expectations.

Gamification and Rewards

  1. Incorporate Game Elements:
    • Add game-like features such as points, levels, and challenges to engage users.
    • Encourage interaction by offering rewards for completing tasks or achieving milestones.
  2. Loyalty Programs:
    • Implement loyalty programs where users earn points or rewards for their interactions.
    • Offer exclusive perks, discounts, or access to premium content as incentives.
  3. Quizzes and Contests:
    • Use quizzes, trivia, and contests to engage users in a fun and interactive way.
    • Reward participants with prizes or recognition to boost engagement and retention.
  4. Progress Tracking:
    • Allow users to track their progress in achieving goals or earning rewards.
    • Provide feedback and encouragement to keep users motivated and engaged.

Marketing Your Chatbot

Strategies for Attracting Users

  1. Targeted Advertising:
    • Use targeted ads on social media, search engines, and other platforms to reach potential users.
    • Focus on demographics and interests that align with your chatbot’s purpose.
  2. Influencer Partnerships:
    • Collaborate with influencers who have a relevant audience to promote your chatbot.
    • Utilize influencer reviews, demonstrations, and endorsements to build credibility and attract users.
  3. Content Marketing:
    • Create valuable content (blogs, videos, tutorials) that highlights the benefits and features of your chatbot.
    • Share content across various platforms to attract organic traffic and engage potential users.
  4. Referral Programs:
    • Implement referral programs that incentivize existing users to invite others.
    • Offer rewards for successful referrals to encourage word-of-mouth promotion.

SEO and Social Media for Chatbots

  1. Optimize for Search Engines:
    • Ensure your chatbot’s landing page is optimized for relevant keywords.
    • Use SEO best practices to improve visibility on search engines and attract organic traffic.
  2. Social Media Presence:
    • Create profiles for your chatbot on popular social media platforms.
    • Regularly post updates, engage with followers, and participate in relevant conversations to build a community.
  3. Hashtags and Trends:
    • Use relevant hashtags and participate in trending topics to increase visibility.
    • Engage with popular trends and conversations to attract a wider audience.
  4. Interactive Content:
    • Share interactive content such as polls, quizzes, and live Q&A sessions to engage users.
    • Encourage followers to interact with your content and share it with their networks.

Partnership and Collaboration Opportunities

  1. Business Partnerships:
    • Partner with businesses that complement your chatbot’s services.
    • Collaborate on marketing campaigns, co-branded content, and joint promotions to reach a larger audience.
  2. Technology Integrations:
    • Integrate your chatbot with popular apps and platforms to enhance functionality and reach.
    • Promote the integrations to attract users who already use these technologies.
  3. Industry Events and Webinars:
    • Participate in industry events, webinars, and conferences to showcase your chatbot.
    • Network with potential partners and customers to build relationships and attract interest.
  4. Affiliate Programs:
    • Develop an affiliate program to incentivize other businesses and individuals to promote your chatbot.
    • Offer commissions or rewards for successful referrals and sales generated through affiliates.

By employing these strategies, you can enhance user engagement, attract a larger audience, and ultimately drive higher profits from your chatbot. Personalization, advanced AI capabilities, gamification, and effective marketing are key to building a successful and profitable chatbot.

Future Trends in Chatbot Monetization

Emerging Technologies and Their Impact

  1. Conversational AI Advancements:

    • Natural Language Processing (NLP) and Natural Language Understanding (NLU):
      • Improved NLP and NLU will enable chatbots to understand and process complex language nuances better.
      • This will lead to more human-like interactions and better user experiences, increasing user retention and monetization opportunities.
    • Sentiment Analysis:
      • Enhanced sentiment analysis capabilities will allow chatbots to gauge user emotions and tailor responses accordingly.
      • This emotional intelligence can be leveraged to improve customer satisfaction and boost sales through personalized interactions.
  2. Integration with Internet of Things (IoT):

    • Smart Devices and Wearables:
      • Chatbots integrated with IoT devices can offer seamless control and monitoring of smart home systems, health trackers, and other connected devices.
      • This integration can open new revenue streams through premium services and device management subscriptions.
    • Voice-Activated Assistants:
      • The proliferation of voice-activated devices like Amazon Alexa, Google Home, and Apple HomePod will drive the need for chatbots with voice interaction capabilities.
      • Voice commerce will emerge as a significant monetization avenue, allowing users to make purchases and manage services through voice commands.
  3. Blockchain and Secure Transactions:

    • Decentralized Applications (dApps):
      • Blockchain technology will enable the development of decentralized chatbots that offer greater security and transparency.
      • These chatbots can handle secure transactions and smart contracts, providing trust and reliability for financial services and e-commerce.
    • Cryptocurrency Payments:
      • Chatbots will increasingly support cryptocurrency transactions, catering to the growing number of users in the digital currency space.
      • Accepting cryptocurrency can attract a tech-savvy audience and offer new monetization options through transaction fees and crypto investments.
  4. Enhanced Personalization with AI:

    • Hyper-Personalization:
      • AI algorithms will enable hyper-personalized interactions, where chatbots provide tailored recommendations and offers based on detailed user profiles.
      • This deep personalization can significantly boost conversion rates and customer loyalty, leading to higher revenue.
    • Predictive Analytics:
      • Predictive analytics will allow chatbots to anticipate user needs and preferences, offering proactive solutions and suggestions.
      • This proactive approach can drive upselling and cross-selling opportunities, enhancing overall profitability.

Predictions for the Chatbot Industry

  1. Widespread Adoption Across Industries:
    • Chatbots will become ubiquitous in various sectors, including healthcare, finance, retail, education, and entertainment.
    • Each industry will find unique ways to monetize chatbots, from virtual health consultations to personalized shopping assistants.
  2. Growth of Conversational Commerce:
    • Conversational commerce will expand, with chatbots facilitating transactions directly within messaging apps and social media platforms.
    • Businesses will leverage chatbots for seamless shopping experiences, driving higher sales and customer engagement.
  3. Increased Focus on Multimodal Interactions:
    • Chatbots will evolve to support multimodal interactions, combining text, voice, and visual elements for a richer user experience.
    • This multimodal approach will cater to diverse user preferences and enhance engagement, leading to better monetization prospects.
  4. Regulatory Developments:
    • As chatbots become more prevalent, regulatory frameworks will emerge to address data privacy, security, and ethical considerations.
    • Compliance with these regulations will be crucial for maintaining user trust and ensuring sustainable monetization strategies.
  5. AI-Driven Insights and Optimization:
    • AI will play a pivotal role in providing actionable insights from chatbot interactions, helping businesses optimize their strategies.
    • Continuous learning and adaptation will enable chatbots to stay relevant and effective, maximizing their monetization potential.

Preparing for Future Opportunities

  1. Investing in Advanced AI Technologies:
    • Businesses should invest in cutting-edge AI technologies to enhance chatbot capabilities and stay ahead of the competition.
    • Leveraging AI for personalized experiences, predictive analytics, and sentiment analysis will be key to future success.
  2. Focusing on User Experience:
    • Prioritizing user experience will be essential for retaining customers and driving engagement.
    • Ensuring seamless, intuitive, and context-aware interactions will differentiate successful chatbots from the rest.
  3. Exploring New Monetization Models:
    • Stay open to experimenting with innovative monetization models, such as microtransactions, pay-per-interaction, and dynamic pricing.
    • Continuously evaluate and adapt monetization strategies to align with evolving user preferences and market trends.
  4. Building Strategic Partnerships:
    • Collaborate with technology providers, industry experts, and other businesses to expand the reach and capabilities of chatbots.
    • Strategic partnerships can open new avenues for growth and enhance the overall value proposition.
  5. Ensuring Compliance and Ethical AI Use:
    • Adhere to emerging regulations and ethical standards to build trust and credibility with users.
    • Focus on data privacy, security, and transparency to foster long-term relationships and sustainable monetization.

By staying abreast of emerging technologies, anticipating industry trends, and strategically preparing for future opportunities, businesses can maximize the monetization potential of chatbots and secure their place in the evolving digital landscape.

The Importance of Monetizing Chatbots:

  1. Revenue Generation:

    • Monetizing chatbots is a direct way to generate additional income for businesses. By turning everyday interactions into opportunities for sales, subscriptions, or advertising, chatbots contribute significantly to the bottom line.
  2. Operational Efficiency:

    • Chatbots automate repetitive tasks, allowing businesses to allocate human resources to more strategic activities. This efficiency not only reduces costs but also improves productivity, leading to higher profitability.
  3. Customer Expectations:

    • In an era where customers demand instant responses and 24/7 availability, chatbots play a crucial role in meeting these expectations. Providing immediate assistance through chatbots enhances customer satisfaction and loyalty, which are essential for long-term success.
  4. Scalability:

    • As businesses grow, the ability to handle an increasing number of customer interactions becomes critical. Chatbots offer a scalable solution that can manage large volumes of queries without compromising on response quality, enabling sustainable growth.
  5. Market Competitiveness:

    • Early adopters of chatbot technology often gain a competitive edge. By leveraging chatbots for monetization, businesses can offer innovative services and superior customer experiences, distinguishing themselves from competitors.
  6. Data-Driven Insights:

    • Chatbots collect and analyze interaction data, providing valuable insights into customer preferences and behavior. This information is crucial for making informed business decisions, optimizing marketing strategies, and enhancing product offerings.
  7. Diverse Monetization Opportunities:

    • Chatbots open up various avenues for revenue, such as affiliate marketing, e-commerce, and subscription services. This diversification helps businesses reduce reliance on a single income source and mitigate risks.
  8. Enhanced Customer Engagement:

    • Interactive and personalized chatbot experiences keep customers engaged and invested in the brand. Higher engagement levels typically lead to increased conversions, repeat business, and customer advocacy.
  9. Cost Reduction:

    • By automating customer support and other routine tasks, chatbots reduce the need for a large customer service team. This reduction in labor costs directly impacts the overall profitability of the business.
  10. Innovation and Adaptability:

    • The dynamic nature of chatbot technology allows businesses to continually innovate and adapt to market changes. By staying ahead of technological trends, companies can ensure their chatbot strategies remain effective and relevant.
  11. Increased Reach and Accessibility:

    • Chatbots can interact with customers on multiple platforms, including websites, social media, and messaging apps, extending the business’s reach. This accessibility makes it easier to connect with a broader audience, enhancing brand visibility and revenue potential.
  12. Customer Retention and Loyalty:

    • Providing excellent customer service through chatbots fosters customer loyalty and retention. Happy and satisfied customers are more likely to return, recommend the business to others, and contribute to a stable revenue stream.
  13. Future-Proofing the

Monetizing chatbots is not just a trend; it is a strategic move that offers significant advantages in terms of revenue, efficiency, and customer satisfaction. By embracing chatbot technology, businesses can unlock new opportunities, stay competitive, and achieve sustainable growth.

Final Thoughts on the Future of Chatbot Monetization

The future of chatbot monetization is both promising and dynamic, driven by rapid advancements in AI, machine learning, and emerging technologies.

As chatbots become more sophisticated and integrated into various facets of business and daily life, the opportunities for generating revenue will expand significantly. Here are some key considerations for the future:

  1. Continued Technological Evolution:

    • As AI and NLP technologies continue to evolve, chatbots will become increasingly capable of understanding and engaging with users in more natural and meaningful ways. This will enhance user satisfaction and open up new avenues for monetization through personalized services and advanced features.
  2. Expansion Across Industries:

    • The adoption of chatbots will grow across diverse industries, each finding unique ways to leverage chatbot technology for revenue generation. From healthcare to finance, retail to education, chatbots will become integral to delivering personalized, efficient, and scalable services.
  3. Enhanced Personalization:

    • Hyper-personalization will become a key driver of chatbot monetization. By leveraging user data and advanced analytics, chatbots will offer highly tailored interactions that resonate with individual preferences and needs, leading to increased user engagement and higher conversion rates.
  4. Rise of Conversational Commerce:

    • The integration of chatbots with e-commerce platforms and social media will revolutionize the shopping experience. Conversational commerce, where transactions are facilitated through chat interfaces, will become a major revenue stream, driven by seamless, real-time interactions and personalized recommendations.
  5. Voice and Multimodal Interactions:

    • The growth of voice-activated chatbots and multimodal interactions will cater to a wider range of user preferences and contexts. These advancements will make chatbots more accessible and engaging, fostering deeper user interaction and loyalty.
  6. Regulatory and Ethical Considerations:

    • As chatbot usage becomes more widespread, regulatory frameworks will develop to ensure data privacy, security, and ethical AI practices. Businesses must stay compliant with these regulations to build trust and maintain sustainable monetization strategies.
  7. Strategic Partnerships and Integrations:

    • Collaborations with other businesses, technology providers, and platforms will enhance chatbot capabilities and reach. Strategic partnerships will enable businesses to offer more comprehensive services and tap into new markets.
  8. Innovative Monetization Models:

    • Future monetization strategies will likely include a mix of traditional and innovative models. Businesses will experiment with microtransactions, dynamic pricing, subscription-based services, and pay-per-interaction models to find the most effective ways to generate revenue.
  9. Focus on User Experience:
    • A seamless, intuitive, and enjoyable user experience will be critical to retaining customers and driving revenue. Businesses must prioritize user-centric design and continuous improvement based on user feedback and interaction data.
  10. Proactive Adaptation and Learning:
    • The ability to quickly adapt to new technologies, market trends, and user behaviors will be essential. Continuous learning and agile development processes will help businesses stay ahead of the curve and maximize the monetization potential of their chatbots.

 Wrapping Up

The future of chatbot monetization is bright, with vast opportunities awaiting businesses that embrace innovation, prioritize user experience, and adapt to technological advancements.

By strategically leveraging these trends and continuously optimizing their chatbot strategies, businesses can turn conversations into substantial revenue streams and achieve long-term success in the digital age.

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