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SESSION -2 AMIGOS
BUSINESS & REVENUE MODELS
BUSINESS MODEL
 A business model articulates the logic and
provides data and other evidence that
demonstrates how a business creates and
delivers value to customers.
 It also outlines the architecture of revenues,
costs, and profits associated with the business
enterprise delivering that value.
MODEL
Select
features to
be
embedded
in the G&S
Determine
the benefit
to the
user(s)
Identify
Market
Segments
Confirm the
revenue
stream
Capture
Value
Deliver
Value
THE MOST IMPORTANT INGREDIENT
E-BUSINESS MODELS
 – Brokerage
 – Advertising
 – Infomediary
 – Merchant
 – Manufacturer (Direct)
 – House of Brands
 – Community
 – Subscription
 – Utility
THE
HIGHEST
REVENUE
EARNING
MODEL
MODEL
NO BODY
TEACHES
BUT
MOST
PRACTICE
MOST
PREVALENT
SUBSCRIPTION BASED
 Users are charged periodically for the usage of the goods
OR services
 Netflix, Amazon Prime, Dollar Shaving Club
 E-magazines, books, newsletters
ADVERTISING MODEL
 Check the websites- ndtv.com, hindustantimes.com…..
HOUSE OF BRANDS MODEL
 Thrasio
 Mensa Brands
https://www.youtube.com/watch?v=FwHuauFOEYE
COMMUNITY
 Linkedin
 Facebook
 Open Source Software
 Social Message/ Development
 Sources of Revenue…???
AFFILIATE MODEL
 Pay for Performance Model
https://www.authorityhacker.com/successful-affiliate-
websites-examples/
Banner Ads- Amazon pioneered the concept
DIRECT SALES/ MANUFACTURER
 Best Example is DELL
 Byju’s, Sleepy Owl Coffee
 Hybrid with other models like advertising, subscription
 Ex- Hotstar, Amazon Prime, Zee5
INFOMEDIARY
 Target Market – Information Suppliers
 Nielsen Ratings
 TVC Ratings
 Media Comparison
 Consumer surveys
 Amazon Mechanical Turk
MERCHANT
 Wholesalers and retailers of goods and services on the Web
 Sales may be made based on list prices or through auction.
 Virtual Merchant--Amazon.com, Pepperfry, Ola
 Catalog Merchant—Elvy Lifestyle
 Click and Mortar—Bata, Decathalon,
BROKERAGE/ COMMISSION
 99 acres.com,
 Magicbricks
GARTNER HYPE CYCLE

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Business revenue model ppt for MBA students