8. Common Errors
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Use “all-of-the-above” revenue models: license, direct sales, affiliates, etc.
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The reason to select a specific revenue model is unclear
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Lack of understanding of how customers buy today.
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What do competitors charge?
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Is the profit sufficient?
9. Metrics that Matter
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Value proposition: product cost, attainable market, etc.;
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Customer relationships: CAC, conversion rate, LTV, etc.
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Market type: different revenue curves;
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Cost structure: operating costs, etc.;
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Channel: channel margins, etc.;
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Revenue Streams: selling price, number of customers, etc.;
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Burn rate: company spending per month.
15. Types of Partners
Strategic Alliances Apple + Record Labels
Joint Business Development Intel Inside
Coopetition wi-fi 802.11b/g/n
Key Suppliers Outsource suppliers: Apple + Foxconn Direct suppliers: Logoplaste
Virtual Channels (web) Expedia
18. Presentation for Next Week
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Slide 1: Cover slide
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Slide 2: Business Model Canvas (changes marked in red, different colors for multi-sided markets)
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Slide 3: Hypotheses about what partners are needed? Why?
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Slide 4: Diagram the partner relationship with money flows. What are the incentives and impediments for the partners?
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Slide 5: Lessons learned from interviews with potential partners.
19. Before Next Class
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Talk to at least 10 customers, including partners
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Update LPC Narrative and Canvas
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Work on your MVP
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Prepare Class Presentation
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Watch Lecture 8: Resources, Activities and Costs
