edition 2013:
Business tactics
to steal.
by boardofinnovation.com
office for business model innovation
Flickr cc Stew Dean

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull Stratos
Redigi.com
Steal 1 tactic from every month of 2012 to use in 2013:

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Redigi.com
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull Stratos

January 2012: Redigi faced a lawsuit
because users could resell pre-owned
MP3 files via their marketplace.
More lawsuits followed during the year.
Redigi.com will soon start
reselling other digital
content like eBooks.
!

Steal this lesson:
When selling digital data, think how your clients could
resell their digital content via a legal channel.
!
If you don’t plan to support this, clients will find a workaround via 3rd parties who
will make money on these transactions. Don’t leave money on the table!
Related facts:
- Although consumers think they buy digital products (ebooks, music or software)
in fact they buy a license to use the product. In June, the Court of Justice of the
European Union ruling created a breach in this license model. It’s expected that
soon more pre-owned digital marketplaces will pop up.
!
Have you ever tried to resell software or digital files?

Working on a Business Innovation challenge?
Our training & consulting will give you a boost!
All info: www.boardofinnovation.com/training
The full slide deck in High Resolution can be
downloaded as PDF
Pay With A Tweet

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull StratosUpstart.com
Redigi.com

February 2012: Upstart launched their
crowdfunding platform to invest in
students in return for a share of their
future wage.
Invest in people & their
potential. Not ideas.
Official Tax statements act as a reference.
!

Steal this lesson:
It’s smarter to invest in people than ideas.
!
Venture capitalists know this for years. You rather have a strong team with a poor
idea than a brilliant idea backed by a poor team. That’s why the platforms like
Upstart are promising!
Related facts:
- While Upstart.com works with students, Pursu.it focusses on athletes. More
niche platforms in this domain will emerge in 2013.
!
Would you allow people to invest in your employees (along with shares in your
company?)

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull Stratos
Team Fortress II
Redigi.com

March 2012: Valve evaluated their
model and switched to a Free-to-play
game for Team Fortress II.
Gamers pay for upgrades (e.g. new weapons, outfits...)
Revenue is 12x higher in
comparison to monthly
sales before the switch.
OId model = just buy the game for $9.90
!

Steal this lesson:
Don’t rely on one-time sales. You’ll make more money if
you allow to upgrade the product.
!
In the old days gamers used to spend x amount of dollars per box. Today they are
‘allowed’ to spend their whole wallet in a longer run.
Related facts:
- Some die-hard gamers spend hundreds of dollars on virtual clothing.
e.g. Blue Party Hats are being traded in the game Runescape for $1,680
- Several games get 90% of their total revenue only by 5% of their users.
!
How could this concept be applied in other industries challenged by ‘free’ products?

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull Stratos
JazzDelivery.be
Redigi.com

April 2012: Jazzdelivery.be launched a
clever pricing page for a Jazz band. Mix
& listen to your own band and see
instant price quote for bookings.
Great translation of an
offline experience to an
online platform.
!

Steal this lesson:
Make your pricing as transparent as possible. Without a
price clients can’t put their money on the table. Simple.
!
Jazzdelivery.be even turned their pricing page into an experience.
Related facts:
- Recently we’ve tried to buy extra Microsoft Office Licenses. To get a simple
quote it would take several days via a professional reseller. Worst. Experience.
Ever. In contrast, we could buy Numbers & Pages directly from the integrated
app store on our Macs.
!
Do you remember the most convenient way you’ve spent a large sum of money?

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull Stratos
VimeoRedigi.com

May 2012: Vimeo upgraded their
Music Store. Users could mix & buy
soundtracks for their amateur videos.
Videos can be uploaded for free.
Vimeo makes money by
optimizing the experience
for its users.
!

Steal this lesson:
Extra revenue can always be found by solving problems
your users experience just before or after they use your
product.
!
Vimeo users need (music) editing tools before publishing their videos. Don’t just
focus on extra storage or faster bandwidth when looking for extra revenue streams.
Related facts:
- Similar: An online bank should help clients tackle problems related to their
household budget (and get paid for that) instead of monetizing the number of
bank transactions.
!
What problem does your client experience the hours before or after he interacts
with your product or service?

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull Stratos
Facebook
Redigi.com
extra May!

Jun 2012: Facebook started to
experiment with an option to let users
pay to be seen by their friends.
On average only 12% of your friends see your posts.
Some called it the worst
bait-and-hook strategy
ever.
!

Steal this lesson:
Make money on people’s vanity & eagerness for
exposure. This is one of the most lucrative strategies to
use in an online context. People love to brag.
!
Some called this Facebook move the worst bait-and-hook that has ever rolled out.
First lure everybody, then ask for money in return for providing exposure.
Related facts:
- Linkedin has used a similar approach for years (pay to reach certain people) but
it operates in a commercial/professional context. The informal character of
Facebook doesn’t fit with this proposition.
- Another way to monetize ‘vanity’ will come with startups that will sell Virtual
Digital Make up.
!
How far would you go to lure new customers?

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull StratosMysteryTrips
Redigi.com

Jun 2012: Australian travelers could
book a secret trip to an unknown
destination, ready to be surprised.
Clients should just trust
the agency that they will
get the 5-star service as
promised.
!

Steal this lesson:
In a world of information overload you can amaze your
clients with unique experiences by sharing no info at all.
!
Reduce the risk of having a bad experience as well. Mysterytrips.com.au limits
trips to 3 days long. In the worst case a client would regret only few days of his
holiday on a suboptimal trip.
Related facts:
- GetGoing.com offers discounts up to 40% if the site decides last minute on
which of two city trips you will travel. This enables airlines to optimize flight
capacities more efficiently.
- Via Curated.nl people can subscribe to receive selected mystery boxes curated
by experts. (e.g. Joachim Baan handpicks design items)
!
What would you keep in secret to boost the experience of your product or service?

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull Stratos
Nextdoor
Redigi.com

July 2012: Nextdoor raised $18.6M to
grow its private social network
platform for neighborhoods.
+6000 neighborhoods signed up so far
Most people don’t know
their neighbors. A digital
platform could make a
difference.
!

Steal this lesson:
There is always room for well targeted niche services.
!
Facebook has already conquered the ‘social graph’, the mapping of social relations
between people. However, like in most industries, the winner doesn’t take it all.
When focused on a relevant profile of people, niche platforms could be far more
valuable to advertisers.
Related facts:
- JazLife.com offers a similar service to connect people within one apartment
building.
- Ad-hoc social networks at events could become the next big thing.
!
A small segment is not the same as a relevant niche. Do you know startups in your
industry that didn’t know the difference?

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull Stratos
Karma
Redigi.com

Aug 2012: Social bandwidth provider
Karma raised $1M. Share your mobile
wifi-hotspot & get rewarded.
Extra 100Mb+ for every connected user.
Karma creates ad-hoc
social networks. Reach out
to those connected to your
wifi-spot.
!

Steal this lesson:
Don’t use one-sided rewards.
Give an incentive both to the referrer and receiver.
!
Dropbox used a similar approach to become market leader in their segment. Both
the one who spreads the referral link and the new signups got free extra storage.
Related facts:
- Socialcam and Viddy, 2 mobile social video services, used a shady variation of
this tactic by auto pushing every view or activity to user’s Facebook wall. This
approach was not sustainable. After an exponential growth in Q1 2012 they lost
95% of users by the end of the year.
!
How could you leverage your own client base to attract new customers?

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull Stratos
Cardrops.comRedigi.com

Sep 2012: We rolled out Cardrops.com
A new venture to deliver parcels
straight in the trunk of your car.
No more time lost by running to collection points.
Try to tackle pains in a
booming industry. Take
e-commerce as an example.
!

Steal this lesson:
Subscription models that focus on selling convenience
are on the rise. Everyone loves recurring revenue, right?
!
Cardrops might grow to become a ‘service platform’ for your car: Get your
laundry delivered to your car, rent out your car to your neighbor, eco-driving ...
Related facts:
- In November Google bought a similar Canadian startup Bufferbox for $17
Million.
- Miss Nev takes a different approach by convincing local merchant to become
e-commerce drop-off points.
!
Could you identify an industry where inconvenience is the norm ?

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull StratosRed Bull Stratos
Redigi.com

Oct 2012: Red Bull Stratos - the most
remarkable marketing stunt of the
year.
Millions watched a man skydiving from Stratosphere.
Red Bull is a Media
company, not subsidized
by ads, but by selling cans.
!
!

Steal this lesson:
Red Bull evolved and became a media publisher.
Could you adapt your business model by focusing on
unconventional revenue streams?
!
The great success of Red Bull relies on its diversification and cohesion of business
models: energy drink, unforgettable extreme-sport events, its own Media House...
Related facts:
- Several years ago an Australian budget airliner experimented with a retail
business to sell cans of beans to subsidize its airline business.
- Many people don’t realize that football players are just ‘content’ and are priced
on that proposition not because they have the best scoring potential.
!
Have you ever started an experimental revenue side stream?

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull Stratos
Total Boox
Redigi.com

Nov 2012: Total Boox rethinks the
e-book model. You pay only per page
you read.
They plan to go public in early 2013
A pay-as-you-go business
model might put an end to
regrettable book
purchases.

Steal this lesson:
Look for alternative usage based units to set your pricing
strategy. It might be a better fit with your customer.
!
You could offer different usage based pricing options per segment.
Related facts:
- The Russian Babochki Anticafé charges customers by the minute they stay there
but drinks are for free.
-Gym-pact let users pay per time they are not spending in the gym (and therefore
not exercising).
!
How many parameters does your product have to base your pricing on?

2012
Jan Mar Apr May Jun Jul Aug Sep Oct Nov DecFeb
Upstart.com
JazzDelivery.be
Team Fortress II
Vimeo
Facebook
MysteryTrips
Karma
Nextdoor
Cardrops.com
Total Boox
Humble Bundle
Red Bull Stratos
Humble Bundle
Redigi.com

Dec 2012: $5 Million was raised by
Humble Bundle in 1 game bundle sale
by letting people set their own price.
The price could be as low as zero.
Humble Bundle is the
master of the pay-what-
you-want business model.
!

Steal this lesson:
If people pay more than the average price they ‘unlock’ an
extra game download. A smart tactic to raise the average
price that gamers would donate.
!
The most successful Pay-what-you-want models rely on a strict communication
strategy.
Related facts:
- In September also Vimeo introduced a Tip Jar feature. Viewers could donate a
small amount to thank the creator but Vimeo didn’t understand how pay-what-
you-want models work. Hopefully they can redesign this feature in 2013!
- 24x7 Cultural launched a book vending machine in Brazil based on the pay-what-
you-want model.
!
Would you make any money at all if you ask potential clients to set their own price?

Working on a Business Innovation challenge?
Our training & consulting will give you a boost!
All info: www.boardofinnovation.com/training

Want more?
@boardofinno
@nickdemey
@philderidder
@manuvollens
Thanks for spreading the word!

Want more?
@boardofinno
@nickdemey
@philderidder
@manuvollens
Thanks for spreading the word!