BetterWorks and AnyPerk didn't revolutionize employee benefits; they've had these types of arrangements for decades. All they really bring to the table is a web interface. Thus, the problem of scale (especially as it relates to customer generation) matters.

The problem was that the business model doesn't scale. In order to generate partners and customers, they needed a fairly large sales force. BetterWorks was simply never able to generate sufficient revenues to make the model work.