This document discusses revenue models from a network perspective and how to account for externalities. It provides examples of companies that have built sustainable revenue models by addressing positive and negative externalities. Specifically, it recommends identifying externalities, improving positive ones to create more value, and tackling negative externalities to create new revenue streams. One example discussed recycling roof waste to both lower installation costs and generate revenue from waste removal later. The document advocates designing revenue models that account for network impacts to be sustainable.

1. Revenue Models from a
Network perspective
Loïc Bar – NOV 2014
lba@opinum.com

2. Principle
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3. Your are not alone

4. Revenue Model
• When you start:
– A product / service
– Targeted customers
• Company grows: How does your revenue model help
to keep growing?

5. Business Model

6. Missing something…

7. Revenue Model
• What change because of you practice your business?
• What are your impacts on the Network ?
– Possitive
– Negative

8. Business Model
Externalities

9. Plan for it
• Don’t let others build a revenue model on your
negative externalities:
- You loose the positive credit
- You loose money

10. Sustainable
• Externalities help you to define a sustainable
revenue model
• Especially if you look at negative externalities and
tackle them!

11. Example #1
• Positive externalities:
– Better insulation
– Better for environment for everyone
– …
• Negative externalities:
– A lot of waste that cost money

12. Example #1
• They lower costs and make revenues:
–By recycle waste when they install a new roof
–They garantee to take back the waste when the roof need to be replace
– may be 10 to 15 years after they install -> no cost for client.

13. Example #2
• Positive externalities:
– People earn money
– People get cheaper stay around the world
– …
• Negative externalities:
– Neighbors
– Insurance

14. Example #2
New revenue model: commission model

15. Example #3
• Positive externalities:
– Greener world
– Less CO2 produced
– …
• Negative externalities:
– A lot of waste on hardware

16. Example #3
• Initially, big part of revenue model based on hardware sales
• Changed to focus on platform and hardware reuse
– Competitive advantage
– Bigger margin
– Sustainable

17. Positive externalities
• Positive externalities can be exponential in a
Network
– Facebook
• Value increases if your friends are on it
– Energy Impact
• Collective intelligence module
• Benchmark against peer groups.
• More building in, more insights from benchmark

18. Summary
• Think about your impact on the network
• List externalities
– Improve positive one to create more value
– Tackle negative to create a new revenue model

19. Let’s talk
Loïc Bar
lba@opinum.com
http://twitter.com/loicbar