Revenue Models
How Does Your Venture Make Money?
http://sixteenventures.com

Agenda
• Revenue Model vs. Business Model
• Startups and Revenue Models
• Overview of Revenue Model Options
• Software Industry Specifics
• 7 Revenue Streams
• Pricing Strategy
• Bottom Line

Business Model vs.
Revenue Model
• Business Model is Who, What, When, Why,
and Where
• Business Model includes Revenue Model
• Revenue Model is how you make money
• Revenue Model derived from 7 streams
• Without a Revenue Model, there is no
business

Startups and Revenue
Models
• Does a Startup Need a Revenue Model?
• Freemium Is Dead (Free = Zero Value!)
• Ad-based businesses are dead
• You can’t know what the revenue model
will be until you talk to potential customers
• You MUST consider this early in the
product lifecycle

Overview of Revenue
Model Options
• 7 Different Ways to Make Money
• You can have an overall Revenue Model that pulls
from all 7 streams
• Don’t leave money on the table; Monetize
Everything
• Let the Market dictate your revenue model
• Absolutely NOT only valid for Software
Companies

Software Industry
Specifics
• Separate Delivery Model from Revenue
Model
• SaaS does not require Subscription Billing
• On-Premises does not require traditional
pricing strategies
• Let the Market Dictate Revenue Model

7 Revenue Streams

7 Revenue Streams
• During seminar we go into details of each
revenue stream

Pricing Strategy
• Avoid competing on price but instead on value
• Know the market
• know how and what the competition charges
• know how and when your customers buy and who is
involved
• know the value you bring to avoid commodity pricing
• CAPEX vs. OPEX only matters if the market says it
does

Bottom Line
• No Revenue Model means No Business
• If you can Cure a Pain, you can Generate Revenue
• If there is no pain, the best revenue model will not
help
• Until Someone Pays You, Its Just an Idea

Until Someone Pays You, Its Just an Idea
http://sixteenventures.com