8. Common Errors
• Use “all-of-the-above” revenue models:
license, direct sales, affiliates, etc.
• The reason to select a specific revenue
model is unclear
• Lack of understanding of how customers
buy today.
• What do competitors charge?
• Is the profit sufficient?
9. Metrics that Matter
• Value proposition: product cost, attainable market,
etc.;
• Customer relationships: CAC, conversion rate,
LTV, etc.
• Market type: different revenue curves;
• Cost structure: operating costs, etc.;
• Channel: channel margins, etc.;
• Revenue Streams: selling price, number of
customers, etc.;
• 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• Slide 1: Cover slide
• Slide 2: Business Model Canvas (changes marked in red,
different colors for multi-sided markets)
• Slide 3: Hypotheses about what partners are needed?
Why?
• Slide 4: Diagram the partner relationship with money
flows. What are the incentives and impediments for the
partners?
• Slide 5: Lessons learned from interviews with potential
partners.
19. Before Next Class
• Talk to at least 10 customers, including
partners
• Update LPC Narrative and Canvas
• Work on your MVP
• Prepare Class Presentation
• Watch Lecture 8: Resources, Activities and
Costs