10

Business Models
that rocked 2010
Feedback? Comments?
Twitter: @nickdemey
BoardofInnovation.com
Some people stumbled upon
great ways to make money.
During 2010 many promising
concepts reached a tipping point.
Let’s tak...
10 different ideas to make money
27/04/10
10

PatientsLikeMe.com
Example case: “The feedback of other patients with
similar conditions made 10% switch from doctor.
...
27/04/10
The Business Model behind PatientsLikeMe.com
a community platform for patients
Forget privacy, people are sharing more inf...
The Business Model behind PatientsLikeMe.com
a community platform for patients
With permission, PatientsLikeMe gathers dat...
9

Flattr.com
Example case: “When Paypal, Mastercard and others
blocked Wikileaks, the Swedish Flattr donation system
kept...
27/04/10
The Business Model behind Flattr.com
a service to structure donations for content
Online readers consume tons of content m...
The Business Model behind Flattr.com
a service to structure donations for content
You decide wich fee you give monthly to ...
8

Groupon.com
Example case: “Exclusive deals limited in time made
Groupon the fastest growing company ever, leading to
hu...
27/04/10
The Business Model behind Groupon.com
a broker platform with exclusive discounts
Groupon uses a no cure no pay strategy. T...
The Business Model behind Groupon.com
a broker platform with exclusive discounts
Next, when enough people take the massive...
7

Spotify.com
Example case: “In August SONY BMG Sweden
confirmed they already made more money out of
Spotify music service...
27/04/10
The Business Model behind Spotify.com
an adbased freemium model
The basic music streaming service is offered for free to m...
The Business Model behind Spotify.com
an adbased freemium model
A small percentage does already pay for a premium service....
6

PayWithaTweet.com
Example case: “Paying with the value of your social
network was never more easy. Expect more concepts...
27/04/10
The Business Model behind PayWithaTweet
pay with the value of your social network
More a marketing tool than a business mo...
The Business Model behind PayWithaTweet
pay with the value of your social network
Hopefully boosting the viral effect what...
Ever tried to
visualize your business idea?

Give it a try and send us some feedback
info@boardofinnovation.com - @nickdeme...
5

HumbleBundle.com
Example case: “Buying indie games and supporting
charity is an attractive formula. Being open and
tran...
27/04/10
The Business Model behind HumbleBundle
a succesful pay-whay-you-want formula
You decide how much you pay. Information of p...
The Business Model behind HumbleBundle
a succesful pay-whay-you-want formula
To boost sales Humble Bundle gives buyers con...
4

Free with in-app sales
Example case: “The sales of virtual goods has
flourished in 2010 and even outperformed mobile ads...
27/04/10
The Business Model behind In-App sales
cross-selling strategy
By offering the game (or application) for free they try to g...
The Business Model behind In-App sales
cross-selling strategy
Often an intermediate credit system is used to loose the rea...
3

Quirky.com
Example case: “Quirky raised the bar for co-creation
platforms by paying out influencers. Every week 2 new
pr...
27/04/10
The Business Model behind Quirky.com
a co-creation platform + e-shop
Inventors pay $99 to submit their idea to this co-cre...
The Business Model behind Quirky.com
a co-creation platform + e-shop
Suppliers will set a minimum amount on the pre-sales....
The Business Model behind Quirky.com
a co-creation platform + e-shop
Revenues from the e-shop are shared with the communit...
2

Airbnb.com
Example case: “In times when more people discover
the joy of sharing Airbnb.com, swap.com and others
found w...
2

Clickworker.com
Example case: “Just like Amazon Mechanical Turk,
people world wide are performing micro-tasks gaining
m...
The Business Model behind AirBnb.com
a one-sided matchmaking platform
With this bottom-up P2P model AirBnb connects normal...
The Business Model behind AirBnb.com
a one-sided matchmaking platform
Depending on the rental price AirBnb takes a commiss...
1

Kickstarter.com
Example case: “Looking for $15,000 funding? Scott
Wilson convinced 13,512 people to pledge money to
dev...
27/04/10
The Business Model behind Kickstarter.com
a marketplace for fund seekers
First step, give Fund Seekers some exposure so th...
The Business Model behind Kickstarter.com
a marketplace for fund seekers
Next, people who gave funding to a project idea a...
The Business Model behind Kickstarter.com
a marketplace for fund seekers
Kickstarter takes 5% of the funding as a commissi...
Made by Board of Innovation
international office for business model innovation

Business model brainstorm kit? Try it!

Fee...
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2010modelsreduced 110103065514-phpapp02-110509102437-phpapp02

  1. 1. 10 Business Models that rocked 2010 Feedback? Comments? Twitter: @nickdemey BoardofInnovation.com
  2. 2. Some people stumbled upon great ways to make money. During 2010 many promising concepts reached a tipping point. Let’s take a closer look at their business models
  3. 3. 10 different ideas to make money 27/04/10
  4. 4. 10 PatientsLikeMe.com Example case: “The feedback of other patients with similar conditions made 10% switch from doctor. Welcome in the information age. ” +70,000 patients share medical records* 27/04/10 *xconomy.com/boston/2010/02/10/patientslikeme-growing-as-pharma-customers-boost-focus-on-patients/?single_page=true
  5. 5. 27/04/10
  6. 6. The Business Model behind PatientsLikeMe.com a community platform for patients Forget privacy, people are sharing more info than ever, even medical records. By offering a free service PatientsLikeMe can attract thousands of patients. by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  7. 7. The Business Model behind PatientsLikeMe.com a community platform for patients With permission, PatientsLikeMe gathers data that can be resold for huge sums to third parties likes pharmaceutical companies. Simple. Marvelous. by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  8. 8. 9 Flattr.com Example case: “When Paypal, Mastercard and others blocked Wikileaks, the Swedish Flattr donation system kept Wikileaks’ income stream afloat” 1 Wikileaks article led to +3500 donations* 27/04/10 *flattr.com/thing/42799/Afghanistan-War-Diary-2004-2009
  9. 9. 27/04/10
  10. 10. The Business Model behind Flattr.com a service to structure donations for content Online readers consume tons of content monthly. Strong content can be ‘flattred’ via a button. (similar to ‘like’ on Facebook) articles (content) Online content creator HQ Inc Reader Flattr.com Online content creator articles (content) Content you've read this month by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  11. 11. The Business Model behind Flattr.com a service to structure donations for content You decide wich fee you give monthly to Flattr.com. Every month, Flattr splits your fee evenly over all creators and takes a 10% commission. by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  12. 12. 8 Groupon.com Example case: “Exclusive deals limited in time made Groupon the fastest growing company ever, leading to hundreds of copy-cats world wide.” GAP made $11,000,000 within 1 day 27/04/10 *revenews.com/barrysilverstein/will-success-for-the-gap-secure-groupons-first-mover-advantage/
  13. 13. 27/04/10
  14. 14. The Business Model behind Groupon.com a broker platform with exclusive discounts Groupon uses a no cure no pay strategy. They guarantee that a minimum number of clients will take the discount that is communicated. HQ Inc Inc Groupon.com Company Guaranteed number of clients Buyer Massive discounts 1 deal, 1 city, 1 day by BoardofInnovation.com Buyer Crowd of buyers 27/04/10 pitch your business model visually via this free template
  15. 15. The Business Model behind Groupon.com a broker platform with exclusive discounts Next, when enough people take the massive discount, the deals goes on. Groupon takes 50% of the revenue resulting from this promotion. ! HQ Inc Inc 50% of revenue Groupon.com Company Guaranteed number of clients ! Product Buyer Massive discounts 1 deal, 1 city, 1 day by BoardofInnovation.com Significantly Less Mone Buyer Crowd of buyers 27/04/10 pitch your business model visually via this free template
  16. 16. 7 Spotify.com Example case: “In August SONY BMG Sweden confirmed they already made more money out of Spotify music service than iTunes.” 750K paid subscribers are already hooked* 27/04/10 *techdigest.tv/2010/12/spotify_pass_75.html
  17. 17. 27/04/10
  18. 18. The Business Model behind Spotify.com an adbased freemium model The basic music streaming service is offered for free to music fans. Advertisers pay to cover the costs. ! Money Inc Advertiser Exposure to music fans HQ Inc Spotify Music fan Free music service by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  19. 19. The Business Model behind Spotify.com an adbased freemium model A small percentage does already pay for a premium service. The 2011 US launch must be the most anticipated music service launch ever. ! Inc Money Advertiser Exposure to music fans HQ Inc Spotify Music fan Free music service ! Monthly subscription €9,99 Music fan Ad-free Premium music service by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  20. 20. 6 PayWithaTweet.com Example case: “Paying with the value of your social network was never more easy. Expect more concepts like this in 2011. (e.g. SocialWhispers.com,...)” +300,000 people paid already with a tweet* 27/04/10 *vator.tv/news/2010-10-11-pay-with-a-tweet-a-new-kind-of-marketing
  21. 21. 27/04/10
  22. 22. The Business Model behind PayWithaTweet pay with the value of your social network More a marketing tool than a business model but remarkable enough to mention. Instead of paying with cash, users buy products with exposure. HQ Inc Pay with a Tweet/post Digital product Paywithatweet Online shopper Twitter users Facebook friend Social network by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  23. 23. The Business Model behind PayWithaTweet pay with the value of your social network Hopefully boosting the viral effect what would result in a better reputation for the initiator. The latter could use this to sell more products later on. HQ Inc Pay with a Tweet/post Digital product Paywithatweet Online shopper 1 Twitter users reputation Pay with a Tweet/post Digital product Facebook friend Social network by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  24. 24. Ever tried to visualize your business idea? Give it a try and send us some feedback info@boardofinnovation.com - @nickdemey continue to #5
  25. 25. 5 HumbleBundle.com Example case: “Buying indie games and supporting charity is an attractive formula. Being open and transparant helped this pay-what-you-want concept.” $1,824,408 was raised within 1 week 27/04/10
  26. 26. 27/04/10
  27. 27. The Business Model behind HumbleBundle a succesful pay-whay-you-want formula You decide how much you pay. Information of previous buyers (How much do other Mac users pay?) set anchor prices to encourage payments. ! HQ Inc Set your own price Humble Bundle Gamer Digital games by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  28. 28. The Business Model behind HumbleBundle a succesful pay-whay-you-want formula To boost sales Humble Bundle gives buyers control on how the money is divided over themselves, charity and other organizations. ! HQ Inc ! Set your own price Humble Bundle Gamer Digital games Set % commission ! Set % donation ! Inc Set % donation Charity by BoardofInnovation.com EFF 27/04/10 pitch your business model visually via this free template
  29. 29. 4 Free with in-app sales Example case: “The sales of virtual goods has flourished in 2010 and even outperformed mobile ads. 6/10 top grossing iPhone apps can be bought for free.” 80% of revenue comes from in-app sales* 27/04/10 *readwriteweb.com/mobile/2010/10/in-app-purchases-generate-more-revenue-than-ads.php
  30. 30. 27/04/10
  31. 31. The Business Model behind In-App sales cross-selling strategy By offering the game (or application) for free they try to get you in. If the experience is addictive, users are willing to pay for extras. Free mobile game Addictive Experience HQ Inc Mobile Game by BoardofInnovation.com Mobile Gamer 27/04/10 pitch your business model visually via this free template
  32. 32. The Business Model behind In-App sales cross-selling strategy Often an intermediate credit system is used to loose the real-world value perception of the virtual goods that can be bought with it. Free mobile game Addictive Experience HQ Inc Credits ! Mobile Game Mobile Gamer Money Digital upgrades & virtual goods Some credits by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  33. 33. 3 Quirky.com Example case: “Quirky raised the bar for co-creation platforms by paying out influencers. Every week 2 new products are being launched.” +500 people co-designed 1 new iPad stand* 27/04/10 *quirky.com/products/30-Cloak-iPad-Case
  34. 34. 27/04/10
  35. 35. The Business Model behind Quirky.com a co-creation platform + e-shop Inventors pay $99 to submit their idea to this co-creation platform. After selection a community of designers will co-design and improve this product. by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  36. 36. The Business Model behind Quirky.com a co-creation platform + e-shop Suppliers will set a minimum amount on the pre-sales. If enough people buy this product, it will be go into production. by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  37. 37. The Business Model behind Quirky.com a co-creation platform + e-shop Revenues from the e-shop are shared with the community. 30% of profit goes to the initiator. 30% will be proportionally divided amongst the influencers. by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  38. 38. 2 Airbnb.com Example case: “In times when more people discover the joy of sharing Airbnb.com, swap.com and others found ways to make some cash on this movement.” +700,000 nights are already booked* 27/04/10 *airbnb.com/home/press
  39. 39. 2 Clickworker.com Example case: “Just like Amazon Mechanical Turk, people world wide are performing micro-tasks gaining micro-payments. ” +300.000 people paid already with a tweet* 27/04/10
  40. 40. The Business Model behind AirBnb.com a one-sided matchmaking platform With this bottom-up P2P model AirBnb connects normal people so they can rent out spare rooms to eachother. A professional service democratised. by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  41. 41. The Business Model behind AirBnb.com a one-sided matchmaking platform Depending on the rental price AirBnb takes a commission up to 12%. Other platforms use posting fees when people just swap goods or services. by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  42. 42. 1 Kickstarter.com Example case: “Looking for $15,000 funding? Scott Wilson convinced 13,512 people to pledge money to develop an iPod Nano Watch.” $941,718 was funded within 30 days 27/04/10
  43. 43. 27/04/10
  44. 44. The Business Model behind Kickstarter.com a marketplace for fund seekers First step, give Fund Seekers some exposure so they can connect with a crowd of ‘backers’ who are willing to pledge some money for their ideas. by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  45. 45. The Business Model behind Kickstarter.com a marketplace for fund seekers Next, people who gave funding to a project idea are being rewarded (small or large) depending on the amount they pledged. by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  46. 46. The Business Model behind Kickstarter.com a marketplace for fund seekers Kickstarter takes 5% of the funding as a commission. by BoardofInnovation.com 27/04/10 pitch your business model visually via this free template
  47. 47. Made by Board of Innovation international office for business model innovation Business model brainstorm kit? Try it! Feedback? Comments? Twitter: @nickdemey BoardofInnovation.com Consulting & Speaking? learn more! 01/01/2011
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