B2B Marketing, Sales & Business Models

  • 2,228 views
Uploaded on

This is a list of the Eight B2B business models. The topic is generally for technology startups. Business models for startups.

This is a list of the Eight B2B business models. The topic is generally for technology startups. Business models for startups.

More in: Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
2,228
On Slideshare
0
From Embeds
0
Number of Embeds
3

Actions

Shares
Downloads
52
Comments
0
Likes
3

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Marketing & Models Dave Parker @DaveParkerSEA www.dkparker.com Dave@dkparker.com Copyright DKParker, LLC 2013 “Separating the forest from the trees from the bark”
  • 2. Agenda !  About Dave !  Marketing Methods !  Sales Models !  Pricing Methods !  Business Models !  Financial Models !  Q&A Copyright DKParker, LLC 2013
  • 3. About Dave !  VP Programs at UP Global (Startup Weekend + Startup America) !  Serial Entrepreneur !  EIR at Mitsui Venture Capital !  Board member for three mid-market, handful of startups and advisory board for over 50+ startup companies !  Husband, Dad Copyright DKParker, LLC 2013
  • 4. Two Methods + Three Models !  Marketing Methods – are mechanics to be tested !  Sales Models – how you SELL your product. !  Pricing Methods – how to price your product !  Business Models – are the way to monetize, including key metrics !  Financial Models – include revenue and expenses. Used for both forecast and actual Copyright DKParker, LLC 2013
  • 5. Marketing Methods Copyright DKParker, LLC 2013
  • 6. How many of the Top 10 Viral Videos 2013 were B2B? Copyright DKParker, LLC 2013
  • 7. Copyright DKParker, LLC 2013
  • 8. 5 reasons you won’t go viral 1.  Viral & Network effect is a B2C marketing method calculated as “K Factor” k = invites sent * conversion 2.  No inherent virality in your offering – nothing to share with other people, e.g. Facebook or WhatsApp 3.  No collaboration virality – extending your offering 4.  Your target market is too small (TAM/SAM) 5.  Budget and Creative - No “me-too” approach will work Copyright DKParker, LLC 2013
  • 9. What you can do !  Clear product positioning = word of mouth. Can your message be repeated to their boss? !  Make your product more valuable over time <REALLY?> !  MVP vs. KAP “Kick Ass Product” !  Free trial is different from Freemium !  Corporate users will expense a service below a specific price point !  What the conversion % to paid is the question you will have to answer Copyright DKParker, LLC 2013
  • 10. Marketing Channels and Metrics What are your core assumptions for marketing? !  Track all Marketing by channel and $$ spend !  Paid, SEO, etc. !  Cost to create leads (traffic) !  Cost (effort) and % convert to prospects !  Cost (effort) and % convert to customers Copyright DKParker, LLC 2013
  • 11. Copyright DKParker, LLC 2013
  • 12. Key Metrics - Marketing !  Marketing methods Your marketing metrics here: !  Monthly Spend !  ________________________ !  Cost of SEO !  ________________________ !  Calculation of spend to Lead to Prospect !  ________________________ !  ________________________ !  ________________________ Copyright DKParker, LLC 2013
  • 13. Sales Models Copyright DKParker, LLC 2013
  • 14. Someone has to sell your product – let’s start with you Copyright DKParker, LLC 2013
  • 15. B2B Sales Models !  Web Direct – Advertising and conversion based sales, sales support?, requires customers to search and find !  Direct – internal sales people (Inside or Outside), # of deals/ Month, salary + commissions !  Distribution/Channel Sales – Indirect or external, <# of deals/ Month, no Salary, just commission <Mindshare. Fulfill demand, don’t create demand !  White Label Sales/Licensing – infrastructure or license sales, long sales cycle, few but targeted customers !  Retail – Product on shelves - N/A Copyright DKParker, LLC 2013
  • 16. Known Market Web Direct ✔ Direct ✔ Indirect ✔ Licensing ✔ Unknown Market Retail Copyright DKParker, LLC 2013 Low Price Point High Price Point ✔ ✔ Known Search Words Unknown Search words ✔ ✔ ✔ ✔ ✔ ✔ ✔
  • 17. Sales Model Assumptions The following apply to ALL models !  Cost of Customer Acquisition (CAC) !  Lifetime value of Customer (LTV) !  Typically 36 month calculation !  Time to close sale !  How does this change with product/market maturity? !  Churn/Retention Copyright DKParker, LLC 2013
  • 18. Key Metrics – Sales !  Sales Method !  Sales Staffing !  Sales Cycle !  Time !  Conversion ratios Your sales metrics here:your sales here: !  ________________________ !  ________________________ !  ________________________ !  CAC !  LTV !  ________________________ !  Churn Copyright DKParker, LLC 2013 !  ________________________ !  ________________________
  • 19. Pricing Methods Copyright DKParker, LLC 2013
  • 20. You can sell anything for nothing Copyright DKParker, LLC 2013
  • 21. Pricing !  Value based pricing – don’t start too low !  One time or recurring? !  What do you need to charge to cover: !  Cost of build !  Cost of Sale !  Profit Expectation = Cash flow !  A/B test on closed landing pages Copyright DKParker, LLC 2013
  • 22. Key Metrics – Pricing !  Product variations Your pricing metrics here: !  One time or recurring !  ________________________ !  Monthly/Annual !  ________________________ !  Pricing over time !  ________________________ !  Services !  ________________________ !  ________________________ Copyright DKParker, LLC 2013
  • 23. Business Models Copyright DKParker, LLC 2013
  • 24. If you have a “K Factor” >3 you don’t need a business model Copyright DKParker, LLC 2013
  • 25. 6 7 8 Scalable B2B Business Models Scalable doesn’t include services 1. Subscription – Salesforce – cost of customer acquisition, lifetime value and churn 2. Market Place – Alibaba – average transaction, commission on transaction 3. Lead Generation – AllStarDirectories – traffic, form data, price per lead 4. Productizing a Service – adding scale to a service Copyright DKParker, LLC 2013
  • 26. 6 7 Scalable B2B Models, Cont. 5. Transaction Fees – Flattr, KickStarter – average transaction fee, commission 6. Commerce – Physical Goods- Wholesale, cost of goods, retail, average margin, physical good 7. Combinations – Multisided markets – hardware sensors, software services with data analytics 8. Non-profit Copyright DKParker, LLC 2013
  • 27. 1. Subscription !  Example: Salesforce , Box, Moz !  Key Metrics !  Average Revenue Per User (ARPU) !  Conversion ratio – trial to purchase !  Churn !  Challenges: MVP won’t be enough to be KAP !  Notes: “Consumer IT”, Moz uses no sales force. Copyright DKParker, LLC 2013
  • 28. 2. Marketplace !  Example: Alibaba !  Key Metrics !  Average Transaction Amount !  Number of Monthly Transactions !  Commission % !  Challenges: two sided market places require you start with one side, value to seller !  Notes: critical mass or marketplace required Copyright DKParker, LLC 2013
  • 29. 3. Lead Generation !  Example: AllStarDirectories, NetQuote !  Key Metrics !  Cost to generate traffic !  % conversion of form data !  Price per lead !  Challenges: !  Notes: Copyright DKParker, LLC 2013
  • 30. 4. Transaction/Posting Fees !  Example: 99Designs, KickStarter, Elance !  Key Metrics !  Average transaction revenue !  Fee % per transaction !  Number of transactions !  Challenges: !  Notes: Copyright DKParker, LLC 2013
  • 31. 5. Commerce !  Example: AmazonSupply, Grainger, Go2Marine. !  Key Metrics: !  Wholesale or cost of goods sold !  Average Margin % !  Average Basket !  Commerce – Physical Goods- Wholesale, cost of goods, retail, average margin, physical good !  Notes: Owns customer relationship Copyright DKParker, LLC 2013
  • 32. 6. Combinations !  Combinations business models happen for two reasons !  You don’t know which model is right !  At scale you can expand revenue sources !  Examples: Hardware sensors + software services to create data analytics !  Challenges – most require traction Copyright DKParker, LLC 2013
  • 33. 7. Non-Profit !  Example: UP Global !  Non Profit that provides programs for (consumer) entrepreneurs !  Majority of revenue is from Sponsors !  Challenges: it is scalable, but requires direct sales process for funding !  Notes: Copyright DKParker, LLC 2013
  • 34. Other Models – ONLY at Scale !  Big Data Sales – Data Analytics !  Multisided Marketplace – Etsy, Zarly !  Panels – ability to interview panel of customers or pay for Access. Examples: PatientsLikeMe, Toluna !  B2B2C – please don’t hurt yourself… Copyright DKParker, LLC 2013
  • 35. Innovative Trends !  Groupon – lead gen with consumer benefit !  Airbnb – enabling payments for Peer-2-peer, sharing economy !  Kickstarter – crowdfunding !  Xerox – leasing equipment – 1950’s Copyright DKParker, LLC 2013
  • 36. Financial Models Copyright DKParker, LLC 2013
  • 37. To the Spreadsheets! !  These details manifest in assumptions !  Time based !  Launch !  Ramp !  Scale !  Market & Brand Development !  Pricing !  Overtime Copyright DKParker, LLC 2013
  • 38. Just say “no” to $100M! !  Avoid the Top 10 Fails Fundraising !  Bottom Up vs. Top Down Model !  Find a proxy for your business model “Like this for that” Copyright DKParker, LLC 2013
  • 39. Example Copyright DKParker, LLC 2013
  • 40. Q&A Copyright DKParker, LLC 2013
  • 41. dave@dkparker.com www.dkparker.com/blog @DaveParkerSEA Copyright DKParker, LLC 2013
  • 42. Copyright DKParker, LLC 2013
  • 43. Slides to Print Copyright DKParker, LLC 2013
  • 44. Key Metrics - Marketing !  Marketing methods !  ________________________ !  Monthly Spend !  ________________________ !  Cost of SEO !  ________________________ !  Calculation of spend to Lead to Prospect !  ________________________ !  ________________________ !  ________________________ Copyright DKParker, LLC 2013
  • 45. Key Metrics – Sales !  Sales Method !  ________________________ !  Sales Staffing !  ________________________ !  Sales Cycle !  Time !  Conversion ratios !  ________________________ !  CAC !  LTV !  Churn Copyright DKParker, LLC 2013 !  ________________________ !  ________________________ !  ________________________ !  ________________________
  • 46. Key Metrics – Pricing !  Product variations !  ________________________ !  One time or recurring !  ________________________ !  Monthly/Annual !  ________________________ !  Pricing over time !  ________________________ !  Services !  ________________________ !  ________________________ Copyright DKParker, LLC 2013
  • 47. Key Metrics - Business Model !  Which Model? !  ________________________ !  ________________________ !  Challenges !  ________________________ !  ________________________ !  ________________________ !  ________________________ Copyright DKParker, LLC 2013