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the right business model?
How to choose
flickr cc
by @boardofinno - @nickdemey
In this deck:
5 categories of business models:
With extra highlights & examples
for each category:
No magic.
Remember this one?
Remember this one?
1 million pixels to sell = 1 million dollar #awesome
But it is not always that easy…
This summer I was keynote speaker/mentor
at the European Innovation Academy.
In this deck ...
Copy & Remix.
An easy exercise to start.
Airbnb
Airbnb
of Food.
of Parking.
Airbnb
of Boats.
of Storage.
Netflix
Netflix
of Books.
of Toys.
Netflix
of Clothing.
of Games.
Tinder
Tinder
of Jobs.
of Fashion.
Tinderof Real-estate.
of Shopping.
Tinder
Understand the patterns!
You are in the center!
Your own venture
Business Model transactions
Focus to make this flow as smooth as possible. #frictionless
Can be more complex.
Many different players, a lot of monetary transactions.
Learn more on how to use
our business model i...
The key questions
you need to ask:
What is the best new business model to try?
Several exciting industries to learn from:
News/ Publishing
Dating
Gaming
What to pick?
Free!

for the user.
1.
Paid!

the user = client.
2.
Free?
Free = Free
There are so many variations on ‘free’
What to pick?
Free!

for the user.
1.
- Early exit -
Free
(Hidden) other agenda:
- Aim for an early exit.
- Acqui-hire
- Prestige
- …
Rule of thumb:
There is no free lunch.
What to pick?
Free!

for the user.
1.
- Early exit -
- Pay-what-you-want -
Free?
Customer can pick
his own price.
Pay-what-you-want. (including free)
Case: Humble Bundle
Other industries
#win #fail
Emotional connection
Social/group pressure
…
selling to businesses
social/group pressure
…
What to pick?
Free!

for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -
Free?
Main difference:
People often get the product for free, but
are free to do an extra transaction.
Tip jar - Donation.
Free, for some.
Different segments of
users.
What to pick?
Free!

for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -
- Barter -
Swap goods, give something else in return.
What to pick?
Free!

for the user.
1.
Paid!

the user = client.
2.
Reason why people upgrade!
Free, but pay for extra features
What to pick?
Paid!

the user = client.
2.
- Vanity - reputation -
Some people only want “the best”
Ultimate luxury. 12K€ Smartphone (Vertu)
Vanity, reputation…
Vanity is so powerful!
Looks & Reputuation in games.
To fit in For exclusivity To show commitment ...
Gamers pay:
Important learning: You need other people to show off!
You need enough ‘noobs’ or starters on
your platform, to make other...
Pay to get noticed. (to rise above the crowd…)
Would you pay to get seen by your friends on Facebook?
Facebook 2012
What to pick?
Paid!

the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
Another tactic: Lure people in with free + lock-in.
Just give it a try!
Pay-as-you-go model.
Switching cost?
Pay-as-you-go model.
Switching cost? A lot of hassle to change to a competitor…
Similar, pay-per-use.
Blendle - itunes for journalism
You only pay for those news articles that your read.
What to pick?
Paid!

the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
Privacy features are very powerfull!
Hide your profile.
Incognito mode.
Pay to stay private
(dating business models)
What to pick?
Paid!

the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Sur...
Mystery crates (& surprise upgrades)
similar to Lottery system = very lucrative!
Real life mystery crate (on subscription)
Trust & credibility created by 1 person (not a company)
Example: curated.nl
Blind dates, anyone?
Crazy Blind Date by OKcupid. (up to $3/date)
Rate your dating partner (during the date). 

The higher...
What to pick?
Paid!

the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Sur...
Use Sold. The convenient way to sell goods online.
Hassle free online reselling of goods.
You take a pic of the product yo...
The power of Zynga-like games.
Grind - Spam - Pay
Just click 5000 times to
grow a plant.
Invite 50 friends
to go faster.
F...
Our own experience :)
Colleague of us (accidentally) spams all our clients with
dating/chat invites. #awesome.
What to pick?
Paid!

the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Sur...
This one is on me…
Yes, Awesome.
I’m a PLUS member.
You can help your
contacts by giving them
free access to in-depth
arti...
Virtual gifts.
Line messaging app is one to keep an eye on!
Selling virtual items, gifts,
stickers, is one of the most
luc...
Crucial question!
Learn from gaming.
Question:
Do you allow people to spend (all their) money?
Don’t let people pay just once for your produ...
Next Chapter.
Why does this person get a +120M€ contract?
What to pick?
Free!

for the user.
1.
Paid!

the user = client.
2.
Third party
pays the bills.
3.
What to pick?
Third party
pays the bills.
3.
- Advertising -
Every ad-based model.
The user becomes
the product.
Ad-business is straight forward. but hard.
Offer content.
Control eyeballs
Steer attention to ads
Profit.
What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
Drive sales for another.
Affiliate & Referral models.
Integrated referral links?
Pinterest is the perfect match!
What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
Resell data.
One company is more transparant than the other.
What’s the value of your own personal data?
Resell your own personal data via:
citizenme.com
Example: Patients like me.
What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/par...
What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/par...
What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/par...
another client pays for your product. (could be anymous)
Suspended coffee
Pay an extra coffee for the person after you. #charity
One Laptop Per Child
Pay double the price so someone
else could get a laptop for free.
What to pick?
Free!

for the user.
1.
Paid!

the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
C...
Broker/

Matchmaking
4.
- One-side pays -
One side pays.
Many dating platforms are based on this model.
Often the women use the service for free.
Men need to pay.
Get paid to date?
Very controversial
of course.
Get paid to date.
Other platforms experiment with other rewards than money.
Broker/

Matchmaking
4.
- One-side pays -
- Both sides pay -
Matchmaking between 2 normal users.
only 1 of the 2 parties pays.
Auction platforms.
Different revenue streams for both parties involved.
AirBnb & other broker platforms
Broker/

Matchmaking
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -
Crowdfunding (many variations)
For pre-sales?
Investment?
Donation?
Crowdfunding
The product itself is often not the primary driver: 

“Be part of something bigger, a revolution in …”
Get a return of an investment in someone else.
Invest in the education costs of a student.
Get a share of his/her future i...
Broker/

Matchmaking/
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -
What to pick?
Free!

for the user.
1.
Paid!

the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
M...
Mixed model

Subsidised
5.
- Shop (on the side) -
Mixed model

Subsidised
5.
- Shop (on the side) -
- Razor-blade (add-ons) -
Pay for recurring upgrades or consumables
Offer part of your service
for free (or nearly free)
Open Source model with paid consulting support
Wordpress = free.
Consulting & plug-in support = paid.
Ryanair-like no-frills models.
Mixed model

Subsidised
5.
- Shop (on the side) -
- Razor-blade -
- Credits/points -
Combine concepts
How to combine different transactions?
A remarkable business model to learn from:
www.glowing.com
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
www.glowing.com
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" U...
www.glowing.com
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" U...
www.glowing.com
inFertility Treatment Partner
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging...
www.glowing.com
inFertility Treatment Partner
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging...
li
Not just
- 1 campaign
- 1 product
- 1 company
Crowdfund the potential

of another person!
Key lessons & take-aways.
Lea...
li
Not just
- 1 campaign
- 1 product
- 1 company
Crowdfund the potential

of another person!
Need extra support?
Feel free...
How to choose the right business model? by @boardofinno - @nickdemey
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How to choose the right business model? by @boardofinno - @nickdemey

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The different revenue model options, business model types and drivers why people pay. From Freemium, Broker to Razor-blade models. Ask the right questions to select your monetization strategy.

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Transcript of "How to choose the right business model? by @boardofinno - @nickdemey"

  1. 1. the right business model? How to choose flickr cc by @boardofinno - @nickdemey
  2. 2. In this deck: 5 categories of business models: With extra highlights & examples for each category:
  3. 3. No magic.
  4. 4. Remember this one?
  5. 5. Remember this one? 1 million pixels to sell = 1 million dollar #awesome
  6. 6. But it is not always that easy… This summer I was keynote speaker/mentor at the European Innovation Academy. In this deck are some of the tips & tricks I shared, relevant for those who are looking for monetisation options by focusing on different business model types. @nickdemey
  7. 7. Copy & Remix. An easy exercise to start.
  8. 8. Airbnb
  9. 9. Airbnb of Food. of Parking.
  10. 10. Airbnb of Boats. of Storage.
  11. 11. Netflix
  12. 12. Netflix of Books. of Toys.
  13. 13. Netflix of Clothing. of Games.
  14. 14. Tinder
  15. 15. Tinder of Jobs. of Fashion.
  16. 16. Tinderof Real-estate. of Shopping. Tinder
  17. 17. Understand the patterns!
  18. 18. You are in the center! Your own venture
  19. 19. Business Model transactions Focus to make this flow as smooth as possible. #frictionless
  20. 20. Can be more complex. Many different players, a lot of monetary transactions. Learn more on how to use our business model icons?
  21. 21. The key questions you need to ask: What is the best new business model to try?
  22. 22. Several exciting industries to learn from: News/ Publishing Dating Gaming
  23. 23. What to pick? Free!
 for the user. 1. Paid!
 the user = client. 2.
  24. 24. Free? Free = Free There are so many variations on ‘free’
  25. 25. What to pick? Free!
 for the user. 1. - Early exit -
  26. 26. Free (Hidden) other agenda: - Aim for an early exit. - Acqui-hire - Prestige - … Rule of thumb: There is no free lunch.
  27. 27. What to pick? Free!
 for the user. 1. - Early exit - - Pay-what-you-want -
  28. 28. Free? Customer can pick his own price. Pay-what-you-want. (including free)
  29. 29. Case: Humble Bundle
  30. 30. Other industries #win #fail Emotional connection Social/group pressure … selling to businesses social/group pressure …
  31. 31. What to pick? Free!
 for the user. 1. - Early exit - - Pay-what-you-want - - Tip jar/ donation -
  32. 32. Free? Main difference: People often get the product for free, but are free to do an extra transaction. Tip jar - Donation.
  33. 33. Free, for some. Different segments of users.
  34. 34. What to pick? Free!
 for the user. 1. - Early exit - - Pay-what-you-want - - Tip jar/ donation - - Barter -
  35. 35. Swap goods, give something else in return.
  36. 36. What to pick? Free!
 for the user. 1. Paid!
 the user = client. 2. Reason why people upgrade!
  37. 37. Free, but pay for extra features
  38. 38. What to pick? Paid!
 the user = client. 2. - Vanity - reputation -
  39. 39. Some people only want “the best” Ultimate luxury. 12K€ Smartphone (Vertu)
  40. 40. Vanity, reputation… Vanity is so powerful!
  41. 41. Looks & Reputuation in games. To fit in For exclusivity To show commitment ... Gamers pay:
  42. 42. Important learning: You need other people to show off! You need enough ‘noobs’ or starters on your platform, to make other people feel important #1337
  43. 43. Pay to get noticed. (to rise above the crowd…) Would you pay to get seen by your friends on Facebook? Facebook 2012
  44. 44. What to pick? Paid!
 the user = client. 2. - Vanity - reputation - - Loss-aversion -
  45. 45. Another tactic: Lure people in with free + lock-in. Just give it a try!
  46. 46. Pay-as-you-go model. Switching cost?
  47. 47. Pay-as-you-go model. Switching cost? A lot of hassle to change to a competitor…
  48. 48. Similar, pay-per-use. Blendle - itunes for journalism You only pay for those news articles that your read.
  49. 49. What to pick? Paid!
 the user = client. 2. - Vanity - reputation - - Loss-aversion - - Privacy/ Anonymity -
  50. 50. Privacy features are very powerfull! Hide your profile. Incognito mode. Pay to stay private (dating business models)
  51. 51. What to pick? Paid!
 the user = client. 2. - Vanity - reputation - - Loss-aversion - - Privacy/ Anonymity - - Mystery/ Surprises -
  52. 52. Mystery crates (& surprise upgrades) similar to Lottery system = very lucrative!
  53. 53. Real life mystery crate (on subscription) Trust & credibility created by 1 person (not a company) Example: curated.nl
  54. 54. Blind dates, anyone? Crazy Blind Date by OKcupid. (up to $3/date) Rate your dating partner (during the date). 
 The higher your rate your partner, the more you pay to OKcupid.
  55. 55. What to pick? Paid!
 the user = client. 2. - Vanity - reputation - - Loss-aversion - - Privacy/ Anonymity - - Mystery/ Surprises - - Convenience/ Shortcuts -
  56. 56. Use Sold. The convenient way to sell goods online. Hassle free online reselling of goods. You take a pic of the product you want to sell. UseSold sends an empty box & puts money on your account.
  57. 57. The power of Zynga-like games. Grind - Spam - Pay Just click 5000 times to grow a plant. Invite 50 friends to go faster. F*ck it. I’ll just buy extra coins to get this plant
  58. 58. Our own experience :) Colleague of us (accidentally) spams all our clients with dating/chat invites. #awesome.
  59. 59. What to pick? Paid!
 the user = client. 2. - Vanity - reputation - - Loss-aversion - - Privacy/ Anonymity - - Mystery/ Surprises - - Convenience/ Shortcuts - - Helping peers/ gifts -
  60. 60. This one is on me… Yes, Awesome. I’m a PLUS member. You can help your contacts by giving them free access to in-depth articles.
  61. 61. Virtual gifts. Line messaging app is one to keep an eye on! Selling virtual items, gifts, stickers, is one of the most lucrative things to do.
  62. 62. Crucial question!
  63. 63. Learn from gaming. Question: Do you allow people to spend (all their) money? Don’t let people pay just once for your product. Think: add-ons, subscriptions,… ! Learn more from “Whales” in the gaming industry.
  64. 64. Next Chapter.
  65. 65. Why does this person get a +120M€ contract?
  66. 66. What to pick? Free!
 for the user. 1. Paid!
 the user = client. 2. Third party pays the bills. 3.
  67. 67. What to pick? Third party pays the bills. 3. - Advertising -
  68. 68. Every ad-based model. The user becomes the product.
  69. 69. Ad-business is straight forward. but hard. Offer content. Control eyeballs Steer attention to ads Profit.
  70. 70. What to pick? Third party pays the bills. 3. - Advertising - - Affiliate/ Referral -
  71. 71. Drive sales for another. Affiliate & Referral models.
  72. 72. Integrated referral links? Pinterest is the perfect match!
  73. 73. What to pick? Third party pays the bills. 3. - Advertising - - Affiliate/ Referral - - Data Reseller -
  74. 74. Resell data. One company is more transparant than the other.
  75. 75. What’s the value of your own personal data? Resell your own personal data via: citizenme.com
  76. 76. Example: Patients like me.
  77. 77. What to pick? Third party pays the bills. 3. - Advertising - - Affiliate/ Referral - - Data Reseller - - Joint-Venture/partnership -
  78. 78. What to pick? Third party pays the bills. 3. - Advertising - - Affiliate/ Referral - - Data Reseller - - Joint-Venture/partnership - - White-label/Franchise -
  79. 79. What to pick? Third party pays the bills. 3. - Advertising - - Affiliate/ Referral - - Data Reseller - - Joint-Venture/partnership - - White-label/Franchise - - Get-one-give-one -
  80. 80. another client pays for your product. (could be anymous)
  81. 81. Suspended coffee Pay an extra coffee for the person after you. #charity
  82. 82. One Laptop Per Child Pay double the price so someone else could get a laptop for free.
  83. 83. What to pick? Free!
 for the user. 1. Paid!
 the user = client. 2. Third party pays the bills. 3. Broker/ Matchmaking 4. Can be a mix of all three.
  84. 84. Broker/
 Matchmaking 4. - One-side pays -
  85. 85. One side pays.
  86. 86. Many dating platforms are based on this model. Often the women use the service for free. Men need to pay.
  87. 87. Get paid to date? Very controversial of course.
  88. 88. Get paid to date. Other platforms experiment with other rewards than money.
  89. 89. Broker/
 Matchmaking 4. - One-side pays - - Both sides pay -
  90. 90. Matchmaking between 2 normal users. only 1 of the 2 parties pays.
  91. 91. Auction platforms. Different revenue streams for both parties involved.
  92. 92. AirBnb & other broker platforms
  93. 93. Broker/
 Matchmaking 4. - One-side pays - - Both sides pay - - Crowdfunding - - Penny Auctions -
  94. 94. Crowdfunding (many variations) For pre-sales? Investment? Donation?
  95. 95. Crowdfunding The product itself is often not the primary driver: 
 “Be part of something bigger, a revolution in …”
  96. 96. Get a return of an investment in someone else. Invest in the education costs of a student. Get a share of his/her future income.
  97. 97. Broker/
 Matchmaking/ 4. - One-side pays - - Both sides pay - - Crowdfunding - - Penny Auctions -
  98. 98. What to pick? Free!
 for the user. 1. Paid!
 the user = client. 2. Third party pays the bills. 3. Broker/ Matchmaking 4. Mixed model
 Subsidised 5.
  99. 99. Mixed model
 Subsidised 5. - Shop (on the side) -
  100. 100. Mixed model
 Subsidised 5. - Shop (on the side) - - Razor-blade (add-ons) -
  101. 101. Pay for recurring upgrades or consumables Offer part of your service for free (or nearly free)
  102. 102. Open Source model with paid consulting support Wordpress = free. Consulting & plug-in support = paid.
  103. 103. Ryanair-like no-frills models.
  104. 104. Mixed model
 Subsidised 5. - Shop (on the side) - - Razor-blade - - Credits/points -
  105. 105. Combine concepts
  106. 106. How to combine different transactions? A remarkable business model to learn from:
  107. 107. www.glowing.com IncIncHQHQ Glow IncIncHQHQ Glow First Fund Non-Paying user Data Predictions & Tasks to increase pregnancy
  108. 108. www.glowing.com Paying Users IncIncHQHQ Glow IncIncHQHQ Glow First Fund Preganant* Enganging User Not Pregnant* "Normal" User Not Pregnant* 5 €50/Month Insurance & Extra Guidance Data Non-Paying user Data Predictions & Tasks to increase pregnancy support
  109. 109. www.glowing.com Paying Users IncIncHQHQ Glow IncIncHQHQ Glow First Fund Preganant* Enganging User Not Pregnant* "Normal" User Not Pregnant* 5 €50/Month Insurance & Extra Guidance conceiving Data Non-Paying user Data Predictions & Tasks to increase pregnancy ++ % of Money Pool % of Money Pool support
  110. 110. www.glowing.com inFertility Treatment Partner Paying Users IncIncHQHQ Glow IncIncHQHQ Glow First Fund Preganant* Enganging User Not Pregnant* "Normal" User Not Pregnant* 5 €50/Month Insurance & Extra Guidance conceiving IncIncIncInc Company Data IncIncIncInc Company Non-Paying user Data Predictions & Tasks to increase pregnancy ++ % of Money Pool % of Money Pool 5 Less Money 5 Money Data Exposure support
  111. 111. www.glowing.com inFertility Treatment Partner Paying Users IncIncHQHQ Glow IncIncHQHQ Glow First Fund Preganant* Enganging User Not Pregnant* "Normal" User Not Pregnant* 5 €50/Month Insurance & Extra Guidance conceiving IncIncIncInc Company Data IncIncIncInc Company Non-Paying user Data Predictions & Tasks to increase pregnancy ++ % of Money Pool % of Money Pool 5 Less Money R&D IncIncIncInc Labo 5 Money Data Universities 5 Money User Data Exposure support
  112. 112. li Not just - 1 campaign - 1 product - 1 company Crowdfund the potential
 of another person! Key lessons & take-aways. Learn to detect & understand the patterns. Look in different industries! Copy & Remix multiple models.
  113. 113. li Not just - 1 campaign - 1 product - 1 company Crowdfund the potential
 of another person! Need extra support? Feel free to reach out: @nickdemey www.boardofinnovation.com Co-founder/ Business Designer.
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