How to pick
the right business model?
“When I grow up, 

I want to be an
inventor.
We make corporates

innovate like startups.
We make corporates

innovate like startups.
Our focus: Business Model Innovation
No magic.
Remember this one?
Copy & Remix.
Airbnb
Airbnb
of Food.
of Parking.
Airbnb
of Boats.
of Storage.
Netflix
Netflix
of Books.
of Toys.
Netflix
of Clothing.
of Games.
Tinder
Tinder
of Jobs.
of Fashion.
Tinderof Real-estate.
of Shopping.
Business Model in a nutshell
An organization’s logic of creating, 

delivering and capturing value.
just to make sure we’re all on the same page…
Many different components!
My focus will be on how value can be created.
+ how to monetise your product/service.
Understand the patterns!
Business Model Blocks
- Business Model Blocks -
- Business Model Blocks -
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Indiegogo & KickStarter - Crowdfunding
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Activity Trackers
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Aggregation Platform for Activity Trackers
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
digipill - Audiofiles to change your mind
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Runkeeper
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
ZombiesRun: Running as a game
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Franchising Models
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
MoodPanda - Track your Happiness
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Ginger.io - change data in useful insights
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Klout: Online influence as reputation
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Carrot > To-do list with a personality
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Bitcoins
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Prepaid VISA Healthcare Giftcard
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Moskow: Pay with Exercises
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Pay with a Tweet
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Moves - Connected Apps
You are in the center!
Your own startup
Business Model transactions
Focus to make this flow as smooth as possible. #frictionless
Can be more complex.
Many different players, a lot of monetary transactions.
List of questions
you need to ask?
Some of the industries I’ll highlight:
News/ Publishing
Dating
What to pick?
Free!

for the user.
1.
Paid!

the user = client.
2.
Free?
Free = Free
What to pick?
Free!

for the user.
1.
- Early exit -
Free
(Hidden) other agenda:
- Aim for an early exit.
- Acqui-hire
- Prestige
- …
Rule of thumb:
There is no free lunch.
What to pick?
Free!

for the user.
1.
- Early exit -
- Pay-what-you-want -
Free?
Customer can pick
his own price.
Pay-what-you-want. (including free)
Case: Humble Bundle
Other industries
#win #fail
Emotional connection
Social/group pressure
…
selling to businesses
social/group pressure
…
What to pick?
Free!

for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -
Free?
Main difference:
People often get the product for free, but
are free to do an extra transaction.
Tip jar - Donation.
Free, for some.
Different segments of
users.
What to pick?
Free!

for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -
- Barter -
Swap goods, give something else in return.
What to pick?
Free!

for the user.
1.
Paid!

the user = client.
2.
Reason why people upgrade!
Free, but pay for extra features
What to pick?
Paid!

the user = client.
2.
- Vanity - reputation -
Some people only want “the best”
Ultimate luxury. 12K€ Smartphone (Vertu)
Vanity, reputation…
Vanity is so powerful!
Looks & Reputuation in games.
To fit in Exclusivity Show Commitment ...
Important learning: You need other people to show off!
Pay to get noticed. (above the crowd…)
Would you pay to get seen by your friends on Facebook?
Facebook 2012
What to pick?
Paid!

the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
Another tactic: Lure people in with free + lock-in.
Just give it a try!
Pay-as-you-go model.
Switching cost?
Pay-as-you-go model.
Switching cost?
Similar, pay-per-use.
Blendle - itunes for journalism
What to pick?
Paid!

the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
Privacy features are very powerfull!
Hide your profile.
Incognity mode.
What to pick?
Paid!

the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
Mystery crates (& surprise upgrades)
similar to Lottery system = very lucrative!
Real life mystery crate (on subscription)
Trust & credibility created by 1 person (not a company)
Blind dates, anyone?
Crazy Blind Date by OKcupid. (up to $3/date)
What to pick?
Paid!

the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Convenience/ Shortcuts -
Use Sold. The convenient way to sell goods online.
1 picture to sell your goods.
The power of Zynga-like games.
Grind - Spam - Pay
Our own experience :)
Colleague of us sends out dating invites to all our clients.
What to pick?
Paid!

the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Convenience/ Shortcuts -
- Helping peers/ gifts -
This one is on me…
Yes, Awesome.
I’m a PLUS member.
Virtual gifts.
Line messaging app is one to keep an eye on!
Crucial question!
Learn from gaming.
Question:
Do you allow people to spend (all their) money?
Next Chapter.
Why does this person get a +120M€ contract?
What to pick?
Free!

for the user.
1.
Paid!

the user = client.
2.
Third party
pays the bills.
3.
What to pick?
Third party
pays the bills.
3.
- Advertising -
Every ad-based model.
The user becomes
the product.
Ad-business is straight forward. but hard.
Offer content.
Control eyeballs
Steer attention to ads
Profit.
What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
Drive sales for another.
Affiliate & Referral models.
Integrated referral links?
Pinterest is the perfect match!
What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
Resell data.
One company is more transparant than the other.
What’s the value of your own personal data?
Resell your own data via a platform:
example Citizinme.
Example: Patients like me.
What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -
What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -
- Get-one-give-one -
another client pays for your product. (could be anymous)
Suspended coffee
One Laptop Per Child
What to pick?
Free!

for the user.
1.
Paid!

the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
Can be a mix of all three.
Broker/

Matchmaking
4.
- One-side pays -
One side pays.
Many dating platforms are based on this model.
Get paid to date?
Very controversial
of course.
Get paid to date.
Other platforms experiment with other rewards than money.
Broker/

Matchmaking
4.
- One-side pays -
- Both sides pay -
Matchmaking between 2 normal users.
only 1 of the 2 parties pays.
Auction platforms.
AirBnb & other broker platforms
Broker/

Matchmaking
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -
Crowdfunding (many variations)
For pre-sales?
Investment?
Donation?
Crowdfunding
The product itself is often not the primary driver: 

“Be part of something bigger, a revolution in …”
Get a return of an investment in someone else.
Broker/

Matchmaking/
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -
What to pick?
Free!

for the user.
1.
Paid!

the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
Mixed model

Subsidised
5.
Mixed model

Subsidised
5.
- Shop (on the side) -
Mixed model

Subsidised
5.
- Shop (on the side) -
- Razor-blade (add-ons) -
Pay for recurring upgrades or consumables
Offer part of your service
for free (or nearly free)
Open Source model with paid consulting support
Ryanair-like no-frills models.
Mixed model

Subsidised
5.
- Shop (on the side) -
- Razor-blade -
- Credits/points -
Combine concepts
www.glowing.com
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
www.glowing.com
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
Data
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
support
www.glowing.com
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
conceiving
Data
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
++ % of Money Pool
% of Money Pool
support
www.glowing.com
inFertility Treatment Partner
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
conceiving
IncIncIncInc
Company
Data
IncIncIncInc
Company
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
++ % of Money Pool
% of Money Pool
5
Less Money
5
Money
Data Exposure
support
www.glowing.com
inFertility Treatment Partner
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
conceiving
IncIncIncInc
Company
Data
IncIncIncInc
Company
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
++ % of Money Pool
% of Money Pool
5
Less Money
R&D
IncIncIncInc
Labo
5
Money
Data
Universities
5
Money
User Data
Exposure
support
li
Not just
- 1 campaign
- 1 product
- 1 company
Crowdfund the potential

of another person!
Key lessons & take-aways.
Learn to detect & understand the patterns.
Look in different industries!
Copy & Remix multiple models.

2014 Business Model Selection by Nick De Mey