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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 ways of generating revenues a quick overview with a simple
model
vrijdag 12 april 13
1. get paid by the hour
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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
vrijdag 12 april 13
Examples: window cleaners, lawyers, webdesigners, consultants
vrijdag 12 april 13
2. indirect
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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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Examples: online services (advertising), free newspapers (advertising), sales commission
vrijdag 12 april 13
3. subscriptions
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subscriptions x fee = revenue
periodic payments (day, month, year)
products or services
continuous stream
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Examples: magazines, hosting, service level agreements, newspapers, telephony, premium linkedin etc.
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4. margins, lump sum, per usage
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price x numbers of units sold = revenue
mainly demand based
margins depend on market
high margin-low volumelow margin-high volume
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Examples: groceries, houses, watches, art, cars, projects, etc...
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the innovation is in the combination, some examples
vrijdag 12 april 13
cars/lump sum with subscription service/connected drive
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webdesigner/paid by the hour with subscription/service level agreement
vrijdag 12 april 13
Magazines/subscriptions with one off specials/lump sum
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Free services/indirect with subscription/premium services
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what is your new combination?who can pay for your service?
vrijdag 12 april 13
@raymondwitvoetwww.raymondwitvoet.nl innovation consultant
vrijdag 12 april 13