The document outlines 4 basic ways to generate revenue: 1) getting paid by the hour, 2) indirect revenue through advertising or commissions, 3) subscriptions with periodic payments, and 4) margins, lump sums or per usage payments. It notes that innovation can come from combining these models, like subscriptions for connected car services or premium versions of free advertising-supported services. The document encourages the reader to consider new combinations and who could pay for their service.

1. 4 basic ways of
a quick overview with a simple
generating revenues model
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2. 1. get paid by the hour
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3. hours x fee = revenue
variability depending on numbers
of declarable hours and height of
the fee
Always limited by both available
hours per week and the market
fee level
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4. Examples: window cleaners, lawyers, webdesigners, consultants
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5. 2. indirect
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6. number of users x
value per user or user
activity = revenue
the service is paid for by another
than the user
the supplier has an interesting
user base for a financier
a value per user or user activity
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7. Examples: online services (advertising), free newspapers (advertising),
sales commission
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8. 3. subscriptions
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9. subscriptions x fee =
revenue
periodic payments (day, month,
year)
products or services
continuous stream
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10. Examples: magazines, hosting, service level agreements, newspapers,
telephony, premium linkedin etc.
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11. 4. margins, lump sum, per usage
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12. price x numbers of
units sold = revenue
mainly demand based
margins depend on market
high margin-low volume
low margin-high volume
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13. Examples: groceries, houses, watches, art, cars, projects, etc...
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14. the innovation is in the combination, some
examples
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15. cars/lump sum with subscription service/connected drive
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16. webdesigner/paid by the hour with subscription/service level
agreement
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17. Magazines/subscriptions with one off specials/lump sum
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18. Free services/indirect with subscription/premium services
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19. what is your new combination?
who can pay for your service?
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20. @raymondwitvoet
innovation consultant
www.raymondwitvoet.nl
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