YOUR BUSINESS MODEL IS THE         PRODUCT
EVENTUALLY YOU WILL WANT TOEXCHANGE CURRENCY INTO CASH
SO WHO IS GOING TO PAY YOU?
BUSINESS MODEL PATTERNS
LOW MARGIN    HIGH MARGINHIGH VOLUME   LOW VOLUME
LOW MARGIN HIGH VOLUME     NORMALLY B2C LOW TRANSACTION COSTLARGE CUSTOMER SEGMENT
KEY              VALID                   ATION                         SLOW MARGIN HIGH VOLUME  GROWTH HYPOTHESIS    SIZE ...
HIGH MARGIN LOW VOLUME     NORMALLY B2B HIGH TRANSACTION COSTSMALL CUSTOMER SEGMENT
KEY              VALID                   ATION                         SHIGH MARGIN LOW VOLUME  PROBLEM HYPOTHESIS   PRICE...
SHARED PRODUCT        SERVICE    RESOURCESUBSCRIPTION    RESALE     AGENCY  AUDIENCEAGGREGATION      LOAN       LEASE  CAP...
PRODUCTMANUFACTURE TANGIBLE ITEMS WHICHYOU SELL FOR MORE THAN THEY COST               CARS              FMCG              ...
SERVICEPROVIDE HELP TO OTHERS IN EXCHANGE             FOR A FEE            HAIRDRESSERS              AIRLINES            C...
SHARED  RESOURCECHARGE FOR ACCESS TO AN ASSET WHICH   CAN BE SHARED AMONGST MANY              PEOPLE                GYMS  ...
SUBSCRIPTIONPROVIDE VALUE ON AN ONGOING BASIS  IN RETURN FOR A RECURRING FEE              SATELLITE TV          SOFTWARE A...
KEY                   VALIDSUBSCRIPTION            ATION                              S COST PER ACQUISITION < LIFETIME   ...
KEY                       VALIDSUBSCRIPTION                ATION                                  S               CPA FACT...
KEY                       VALIDSUBSCRIPTION                ATION                                  S               LTV FACT...
RESALE     BUY LOW SELL HIGH          E-RETAIL
KEY                VALIDRESALE               ATION                           S    CHANNEL HYPOTHESIS
AGENCYBROKER OR MARKETPLACE. MARKETINGAND SELLING AN ASSET YOU DON’T OWN              E-BAY             GROUPON
KEY                VALIDAGENCY               ATION                           SVALIDATING BUYER AND SELLER        HYPOTHESI...
AUDIENCE AGGREGATIONCOLLECTING ATTENTION THEN SELLING     ACCESS TO THAT AUDIENCE               BROADCAST TV              ...
AUDIENCE                      KEY                  VALIDAGGREGATION            ATION                             S      GR...
E EF R
THERE IS NO SUCH THING  AS A FREE PRODUCT
NON-PAYING CUSTOMER SEGMENTIS FUNDED BY A DIFFERENT PAYING      CUSTOMER SEGMENT
FREEMIUM GENERALLY MEANS THEGIVING AWAY A BASIC PRODUCT AS   AN ACQUISITION STRATEGY
AND SELLING THE ADVANCED        PRODUCT
TRIAL PERIODSARE NOT FREEMIUM
KEY                  VALID                       ATION                             STHE MARGINAL COST OF SERVICINGFREE CUS...
KEY             VALID                  ATION                        SCONVERSION HYPOTHESIS
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Business Model Patterns at Lean Startup Machine

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The slides from the short presentation I gave on Business Model Patterns at Lean Startup Machine in London on 17th September 2011

Published in: Business, Technology

Business Model Patterns at Lean Startup Machine

  1. 1. YOUR BUSINESS MODEL IS THE PRODUCT
  2. 2. EVENTUALLY YOU WILL WANT TOEXCHANGE CURRENCY INTO CASH
  3. 3. SO WHO IS GOING TO PAY YOU?
  4. 4. BUSINESS MODEL PATTERNS
  5. 5. LOW MARGIN HIGH MARGINHIGH VOLUME LOW VOLUME
  6. 6. LOW MARGIN HIGH VOLUME NORMALLY B2C LOW TRANSACTION COSTLARGE CUSTOMER SEGMENT
  7. 7. KEY VALID ATION SLOW MARGIN HIGH VOLUME GROWTH HYPOTHESIS SIZE OF MARKET
  8. 8. HIGH MARGIN LOW VOLUME NORMALLY B2B HIGH TRANSACTION COSTSMALL CUSTOMER SEGMENT
  9. 9. KEY VALID ATION SHIGH MARGIN LOW VOLUME PROBLEM HYPOTHESIS PRICE SENSITIVITY
  10. 10. SHARED PRODUCT SERVICE RESOURCESUBSCRIPTION RESALE AGENCY AUDIENCEAGGREGATION LOAN LEASE CAPITAL INSURANCE OPTION
  11. 11. PRODUCTMANUFACTURE TANGIBLE ITEMS WHICHYOU SELL FOR MORE THAN THEY COST CARS FMCG iPODS
  12. 12. SERVICEPROVIDE HELP TO OTHERS IN EXCHANGE FOR A FEE HAIRDRESSERS AIRLINES CONSULTANTS
  13. 13. SHARED RESOURCECHARGE FOR ACCESS TO AN ASSET WHICH CAN BE SHARED AMONGST MANY PEOPLE GYMS THEME PARKS iPHONE APPS
  14. 14. SUBSCRIPTIONPROVIDE VALUE ON AN ONGOING BASIS IN RETURN FOR A RECURRING FEE SATELLITE TV SOFTWARE AS A SERVICE
  15. 15. KEY VALIDSUBSCRIPTION ATION S COST PER ACQUISITION < LIFETIME CUSTOMER VALUE PROBLEM/SOLUTION HYPOTHESIS WILL THEY PAY TO SOLVE THIS? WILL THEY PAY YOU?
  16. 16. KEY VALIDSUBSCRIPTION ATION S CPA FACTORSMARKETING BASED ACQUISITION - PAID REFERRAL - FREE
  17. 17. KEY VALIDSUBSCRIPTION ATION S LTV FACTORS SUBSCRIPTION PLAN COST ATTRITION
  18. 18. RESALE BUY LOW SELL HIGH E-RETAIL
  19. 19. KEY VALIDRESALE ATION S CHANNEL HYPOTHESIS
  20. 20. AGENCYBROKER OR MARKETPLACE. MARKETINGAND SELLING AN ASSET YOU DON’T OWN E-BAY GROUPON
  21. 21. KEY VALIDAGENCY ATION SVALIDATING BUYER AND SELLER HYPOTHESIS PRICE SENSITIVITY
  22. 22. AUDIENCE AGGREGATIONCOLLECTING ATTENTION THEN SELLING ACCESS TO THAT AUDIENCE BROADCAST TV CONTENT SITES FACEBOOK
  23. 23. AUDIENCE KEY VALIDAGGREGATION ATION S GROWTH HYPOTHESIS VALIDATING WITH MARKETERS
  24. 24. E EF R
  25. 25. THERE IS NO SUCH THING AS A FREE PRODUCT
  26. 26. NON-PAYING CUSTOMER SEGMENTIS FUNDED BY A DIFFERENT PAYING CUSTOMER SEGMENT
  27. 27. FREEMIUM GENERALLY MEANS THEGIVING AWAY A BASIC PRODUCT AS AN ACQUISITION STRATEGY
  28. 28. AND SELLING THE ADVANCED PRODUCT
  29. 29. TRIAL PERIODSARE NOT FREEMIUM
  30. 30. KEY VALID ATION STHE MARGINAL COST OF SERVICINGFREE CUSTOMERS IS CLOSE TO ZERO BUT PROVIDES OTHER VALUE (MARKETING, DATA)
  31. 31. KEY VALID ATION SCONVERSION HYPOTHESIS
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