4 basic revenue models

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A short and simple approach for 4 basic revenue models. The innovation is in the combination

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4 basic revenue models

  1. 1. 4 basic ways of a quick overview with a simple generating revenues modelvrijdag 12 april 13
  2. 2. 1. get paid by the hourvrijdag 12 april 13
  3. 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 levelvrijdag 12 april 13
  4. 4. Examples: window cleaners, lawyers, webdesigners, consultantsvrijdag 12 april 13
  5. 5. 2. indirectvrijdag 12 april 13
  6. 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 activityvrijdag 12 april 13
  7. 7. Examples: online services (advertising), free newspapers (advertising), sales commissionvrijdag 12 april 13
  8. 8. 3. subscriptionsvrijdag 12 april 13
  9. 9. subscriptions x fee = revenue periodic payments (day, month, year) products or services continuous streamvrijdag 12 april 13
  10. 10. Examples: magazines, hosting, service level agreements, newspapers, telephony, premium linkedin etc.vrijdag 12 april 13
  11. 11. 4. margins, lump sum, per usagevrijdag 12 april 13
  12. 12. price x numbers of units sold = revenue mainly demand based margins depend on market high margin-low volume low margin-high volumevrijdag 12 april 13
  13. 13. Examples: groceries, houses, watches, art, cars, projects, etc...vrijdag 12 april 13
  14. 14. the innovation is in the combination, some examplesvrijdag 12 april 13
  15. 15. cars/lump sum with subscription service/connected drivevrijdag 12 april 13
  16. 16. webdesigner/paid by the hour with subscription/service level agreementvrijdag 12 april 13
  17. 17. Magazines/subscriptions with one off specials/lump sumvrijdag 12 april 13
  18. 18. Free services/indirect with subscription/premium servicesvrijdag 12 april 13
  19. 19. what is your new combination? who can pay for your service?vrijdag 12 april 13
  20. 20. @raymondwitvoet innovation consultant www.raymondwitvoet.nlvrijdag 12 april 13

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