Jay Jamison Business Model Presentation -- Founders Institute 2009

Revenue
Jay Jamison
Co-Founder & President, Moonshoot
Founder’s Institute – June 23, 2009

Microsoft 1973

My Thoughts on Revenue
Its Nice!

Keep It Simple
“Invest in businesses that an idiot could run, because at some point, an idiot will.”

Know What To Look For
Understandable business
Strong, passionate team
Defensible moats
Models that generate cash
Tonight’s Scope

Moats & Models

Moats (in 1559)

Moats (in 2009)
Deliver users something they want.
Build share & leadership.
Improve value to users & repeat.
Attract second stakeholder group to reinforce value to users.

Users want PCs that are cheap, lots of apps.
Developers build for Windows.
WinTel gains share.
Developers need audience for their products

Apple builds Iphone.
Developers build for Iphone.
Users drool & buy.
Apple offers developers a platform.

Google offers outstanding search product.
Ad revenue funds improvements in search.
Google grabs share.
Advertisers need to spend most effectively.

Users are drawn to service with best teachers
Teachers create and market great classes
20% royalty to teachers.
Megastudy
Large user base & commissions draw best teachers.

Build something children love, parents value
Reinforce core value with more fun content, better results to parents
Grow share & credibility
Moonshoot
Collect data on children & learning, reinforce value to parents, educators, and children.

Build something users love
Reinforce core value
Grow share
Your Company
Attract another stakeholder to build on your value.

Models—Part I

Types of Business Models
Figure it out later / Ads
Market maker
Freemium & Subscription
Virtual goods
Price for product or service
Others

Figure it out later / Ads

Market Maker

Freemium & Subscription

Virtual goods

Price per user or copy

Models—Part II

“Know Your Numbers”
Ask tons of questions, do the analysis
Connect with customers & market
Build conviction that model works
Close to pin works

Recent Example
Entrepreneur’s Estimate to VC:
“Microsoft Small Business Server has an Installed Base of 30M”
--Unsourced analyst
Jay’s Estimate
VC emails me.
Microsoft Small Business Server has an Installed Base of around 4M

Closing
Moats
ABC: Always Be Constructing
Business Models
Draft model should be in place ASAP
Monetization can be later
Industry Model
Always be hungry to learn more
But work to stay grounded in reality