1. 10
Business Models
that rocked 2010
Feedback? Comments?
Twitter: @nickdemey
BoardofInnovation.com

2. Some people stumbled upon
great ways to make money.
During 2010 many promising
concepts reached a tipping point.
Let’s take a closer look at their business models

3. 10 different ideas to make money

4. 10 PatientsLikeMe.com
Example case: “The feedback of other patients with
similar conditions made 10% switch from doctor.
Welcome in the information age. ”
+70,000 patients share medical records*
*xconomy.com/boston/2010/02/10/patientslikeme-growing-as-pharma-customers-boost-focus-on-patients/?single_page=true

6. The Business Model behind PatientsLikeMe.com
a community platform for patients
Forget privacy, people are sharing more info than ever, even medical records.
By offering a free service PatientsLikeMe can attract thousands of patients.
by BoardofInnovation.com pitch your business model visually via this free template

7. The Business Model behind PatientsLikeMe.com
a community platform for patients
With permission, PatientsLikeMe gathers data that can be resold for huge sums
to third parties likes pharmaceutical companies. Simple. Marvelous.
by BoardofInnovation.com pitch your business model visually via this free template

8. 9 Flattr.com
Example case: “When Paypal, Mastercard and others
blocked Wikileaks, the Swedish Flattr donation system
kept Wikileaks’ income stream afloat”
1 Wikileaks article led to +3500 donations*
*flattr.com/thing/42799/Afghanistan-War-Diary-2004-2009

10. The Business Model behind Flattr.com
a service to structure donations for content
Online readers consume tons of content monthly. Strong content can be
‘flattred’ via a button. (similar to ‘like’ on Facebook)
articles (content)
Online content
creator
HQ
Inc
Reader Flattr.com
Online content
creator
articles (content)
Content you've
read this month
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11. The Business Model behind Flattr.com
a service to structure donations for content
You decide wich fee you give monthly to Flattr.com. Every month, Flattr
splits your fee evenly over all creators and takes a 10% commission.
by BoardofInnovation.com pitch your business model visually via this free template

12. 8 Groupon.com
Example case: “Exclusive deals limited in time made
Groupon the fastest growing company ever, leading to
hundreds of copy-cats world wide.”
GAP made $11,000,000 within 1 day
*revenews.com/barrysilverstein/will-success-for-the-gap-secure-groupons-first-mover-advantage/

14. The Business Model behind Groupon.com
a broker platform with exclusive discounts
Groupon uses a no cure no pay strategy. They guarantee that a minimum
number of clients will take the discount that is communicated.
HQ
Inc Inc
Groupon.com Company
Guaranteed number
of clients
Buyer Buyer
Massive discounts Crowd of buyers
1 deal, 1 city, 1 day
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15. The Business Model behind Groupon.com
a broker platform with exclusive discounts
Next, when enough people take the massive discount, the deals goes on.
Groupon takes 50% of the revenue resulting from this promotion.
!
HQ
Inc Inc
50% of revenue
Groupon.com Company
Guaranteed number
of clients
!
Product Significantly
Less Mone
Buyer Buyer
Massive discounts Crowd of buyers
1 deal, 1 city, 1 day
by BoardofInnovation.com pitch your business model visually via this free template

16. 7 Spotify.com
Example case: “In August SONY BMG Sweden
confirmed they already made more money out of
Spotify music service than iTunes.”
750K paid subscribers are already hooked*
*techdigest.tv/2010/12/spotify_pass_75.html

18. The Business Model behind Spotify.com
an adbased freemium model
The basic music streaming service is offered for free to music fans.
Advertisers pay to cover the costs.
!
Inc
Money
Advertiser
Exposure to
music fans
HQ
Inc
Spotify Music fan
Free music service
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19. The Business Model behind Spotify.com
an adbased freemium model
A small percentage does already pay for a premium service. The 2011 US
launch must be the most anticipated music service launch ever.
!
Inc
Money
Advertiser
Exposure to
music fans
HQ
Inc
Spotify Music fan
Free music service
!
Monthly subscription €9,99
Music fan
Ad-free
Premium music service
by BoardofInnovation.com pitch your business model visually via this free template

20. 6 PayWithaTweet.com
Example case: “Paying with the value of your social
network was never more easy. Expect more concepts
like this in 2011. (e.g. SocialWhispers.com,...)”
+300,000 people paid already with a tweet*
*vator.tv/news/2010-10-11-pay-with-a-tweet-a-new-kind-of-marketing

22. The Business Model behind PayWithaTweet
pay with the value of your social network
More a marketing tool than a business model but remarkable enough to
mention. Instead of paying with cash, users buy products with exposure.
HQ
Inc
Digital product Pay with a Tweet/post
Paywithatweet Online shopper
Twitter users
Facebook friend
Social network
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23. The Business Model behind PayWithaTweet
pay with the value of your social network
Hopefully boosting the viral effect what would result in a better reputation
for the initiator. The latter could use this to sell more products later on.
HQ
Inc
Digital product Pay with a Tweet/post
Paywithatweet Online shopper
Twitter users
1
reputation
Pay with a Tweet/post
Digital product Facebook friend
Social network
by BoardofInnovation.com pitch your business model visually via this free template

24. Ever tried to
visualize your business idea?
Give it a try and send us some feedback
info@boardofinnovation.com - @nickdemey
continue to #5

25. 5 HumbleBundle.com
Example case: “Buying indie games and supporting
charity is an attractive formula. Being open and
transparant helped this pay-what-you-want concept.”
$1,824,408 was raised within 1 week

27. The Business Model behind HumbleBundle
a succesful pay-whay-you-want formula
You decide how much you pay. Information of previous buyers (How much do
other Mac users pay?) set anchor prices to encourage payments.
!
HQ
Inc
Set your own price
Humble Bundle Gamer
Digital games
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28. The Business Model behind HumbleBundle
a succesful pay-whay-you-want formula
To boost sales Humble Bundle gives buyers control on how the money is
divided over themselves, charity and other organizations.
!
HQ
Inc
Set your own price
!
Humble Bundle Gamer
Digital games
Set %
commission
!
Set % donation
!
Inc
Set % donation
Charity EFF
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29. 4 Free with in-app sales
Example case: “The sales of virtual goods has
flourished in 2010 and even outperformed mobile ads.
6/10 top grossing iPhone apps can be bought for free.”
80% of revenue comes from in-app sales*
*readwriteweb.com/mobile/2010/10/in-app-purchases-generate-more-revenue-than-ads.php

31. The Business Model behind In-App sales
cross-selling strategy
By offering the game (or application) for free they try to get you in.
If the experience is addictive, users are willing to pay for extras.
Free mobile game
Addictive
Experience
HQ
Inc
Mobile Game Mobile Gamer
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32. The Business Model behind In-App sales
cross-selling strategy
Often an intermediate credit system is used to loose the real-world value
perception of the virtual goods that can be bought with it.
Free mobile game
Addictive
Experience
HQ
Inc
Credits
!
Mobile Game Mobile Gamer
Money
Digital upgrades & virtual goods
Some credits
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33. 3 Quirky.com
Example case: “Quirky raised the bar for co-creation
platforms by paying out influencers. Every week 2 new
products are being launched.”
+500 people co-designed 1 new iPad stand*
*quirky.com/products/30-Cloak-iPad-Case

35. The Business Model behind Quirky.com
a co-creation platform + e-shop
Inventors pay $99 to submit their idea to this co-creation platform. After
selection a community of designers will co-design and improve this product.
by BoardofInnovation.com pitch your business model visually via this free template

36. The Business Model behind Quirky.com
a co-creation platform + e-shop
Suppliers will set a minimum amount on the pre-sales. If enough people buy
this product, it will be go into production.
by BoardofInnovation.com pitch your business model visually via this free template

37. The Business Model behind Quirky.com
a co-creation platform + e-shop
Revenues from the e-shop are shared with the community. 30% of profit goes
to the initiator. 30% will be proportionally divided amongst the influencers.
by BoardofInnovation.com pitch your business model visually via this free template

38. 2 Airbnb.com
Example case: “In times when more people discover
the joy of sharing Airbnb.com, swap.com and others
found ways to make some cash on this movement.”
+700,000 nights are already booked*
*airbnb.com/home/press

39. 2 Clickworker.com
Example case: “Just like Amazon Mechanical Turk,
people world wide are performing micro-tasks gaining
micro-payments. ”
+300.000 people paid already with a tweet*

40. The Business Model behind AirBnb.com
a one-sided matchmaking platform
With this bottom-up P2P model AirBnb connects normal people so they can
rent out spare rooms to eachother. A professional service democratised.
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41. The Business Model behind AirBnb.com
a one-sided matchmaking platform
Depending on the rental price AirBnb takes a commission up to 12%.
Other platforms use posting fees when people just swap goods or services.
by BoardofInnovation.com pitch your business model visually via this free template

42. 1 Kickstarter.com
Example case: “Looking for $15,000 funding? Scott
Wilson convinced 13,512 people to pledge money to
develop an iPod Nano Watch.”
$941,718 was funded within 30 days

44. The Business Model behind Kickstarter.com
a marketplace for fund seekers
First step, give Fund Seekers some exposure so they can connect with a
crowd of ‘backers’ who are willing to pledge some money for their ideas.
by BoardofInnovation.com pitch your business model visually via this free template

45. The Business Model behind Kickstarter.com
a marketplace for fund seekers
Next, people who gave funding to a project idea are being rewarded (small
or large) depending on the amount they pledged.
by BoardofInnovation.com pitch your business model visually via this free template

46. The Business Model behind Kickstarter.com
a marketplace for fund seekers
Kickstarter takes 5% of the funding as a commission.
by BoardofInnovation.com pitch your business model visually via this free template

47. Made by Board of Innovation
international office for business model innovation
Business model brainstorm kit? Try it! Consulting & Speaking? learn more!
Feedback? Comments?
Twitter: @nickdemey
BoardofInnovation.com 01/01/2011