Q&A about Revenue Model Team Presentations: Customer Relationships Summary about Partners Work for Next Week

1. iLLP@Tecnico
5 – Customer
Relationships
Luis Caldas de Oliveira

2. Agenda for Session 5
• Q&A about Revenue Model
• Team Presentations: Customer
Relationships
• Summary about Partners
• Work for Next Week

3. Q&A REVENUE MODEL

4. Important
Revenue Model ≠ Pricing
TacticStrategy

5. Revenue Model
• Asset sale
Ford
• Usage fee
Vodafone
• Subscription fee
salesforce.com
• Rent
Avis
• Licensing
MS Office
• Intermediation
airbnb.com
• Advertising
Google

6. Revenue Model
Choices

7. Pricing
(ways to charge)
Fixed
• Cost + profit
(product based)
• Value priced
(customer based)
• Volume priced
(encourage volume)
Dynamic
• Negotiation
(second hand)
• Yield management
(airplane ticket)
• Real-time market
(stock market)
• Auctions
(ebay)

8. Common Errors
• Use “all-of-the-above” revenue models:
license, direct sales, affiliates, etc.
• The reason to select a specific revenue
model is unclear
• Lack of understanding of how
customers buy today.
• What do competitors charge?
• Is the profit sufficient?

9. Metrics that Matter
• Value proposition: product cost, attainable market,
etc.;
• Customer relationships: CAC, conversion rate,
LTV, etc.
• Market type: different revenue curves;
• Cost structure: operating costs, etc.;
• Channel: channel margins, etc.;
• Revenue Streams: selling price, number of
customers, etc.;
• Burn rate: company spending per month.

10. TEAM PRESENTATIONS: CUSTOMER
RELATIONSHIPS

12. PARTNERS

13. Revenue Models

14. Key Partners

15. Partner

16. Types of Partners
Strategic Alliances
Apple + Record Labels
Joint Business
Development
Intel Inside
Coopetition
wi-fi 802.11b/g/n
Key Suppliers
Outsource suppliers:
Apple + Foxconn
Direct suppliers:
Logoplaste
Virtual Channels (web)
Expedia

17. Partner Relationship
Diagram

18. NEXT WEEK

19. Presentation for Next
Week
• Slide 1: Cover slide
• Slide 2: Business Model Canvas (changes marked in
red, different colors for multi-sided markets)
• Slide 3: Hypotheses about revenue model strategy
and price tactics
• Slide 4: Experiments for Revenue Model and
Pricing?
• Slide 5: What are the important metrics for your
business model?

20. Presentation for Next
Week
• Slide 6: Rough 3-year income statement (revenues,
gross margins, significant costs, etc.)
• Slide 7-n: Lessons learned (hypotheses,
experiments, results, action)

21. Before Next Class
• Talk to 10-15 customers to test revenue
model and pricing (100 for web)
• Update LPC Narrative and Canvas
• Work on your MVP
• Prepare Class Presentation
• Watch Lecture 7: Partners

22. Obrigado