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Revenue Models
How Does Your Venture Make Money?




   http://sixteenventures.com
Agenda
•   Revenue Model vs. Business Model

•   Startups and Revenue Models

•   Overview of Revenue Model Options

•   Software Industry Specifics

•   7 Revenue Streams

•   Pricing Strategy

•   Bottom Line
Business Model vs.
    Revenue Model
• Business Model is Who, What, When, Why,
  and Where
• Business Model includes Revenue Model
• Revenue Model is how you make money
• Revenue Model derived from 7 streams
• Without a Revenue Model, there is no
  business
Startups and Revenue
       Models
• Does a Startup Need a Revenue Model?
• Freemium Is Dead (Free = Zero Value!)
• Ad-based businesses are dead
• You can’t know what the revenue model
  will be until you talk to potential customers
• You MUST consider this early in the
  product lifecycle
Overview of Revenue
  Model Options
•   7 Different Ways to Make Money

•   You can have an overall Revenue Model that pulls
    from all 7 streams

•   Don’t leave money on the table; Monetize
    Everything

•   Let the Market dictate your revenue model

•   Absolutely NOT only valid for Software
    Companies
Software Industry
        Specifics
• Separate Delivery Model from Revenue
  Model
• SaaS does not require Subscription Billing
• On-Premises does not require traditional
  pricing strategies
• Let the Market Dictate Revenue Model
7 Revenue Streams
7 Revenue Streams


• During seminar we go into details of each
  revenue stream
Pricing Strategy
•   Avoid competing on price but instead on value

•   Know the market

•   know how and what the competition charges

•   know how and when your customers buy and who is
    involved

•   know the value you bring to avoid commodity pricing

•   CAPEX vs. OPEX only matters if the market says it
    does
Bottom Line

•   No Revenue Model means No Business

•   If you can Cure a Pain, you can Generate Revenue

•   If there is no pain, the best revenue model will not
    help

•   Until Someone Pays You, Its Just an Idea
Until Someone Pays You, Its Just an Idea


      http://sixteenventures.com

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Revenue Model: How Does Your Venture Make Money?

  • 1. Revenue Models How Does Your Venture Make Money? http://sixteenventures.com
  • 2. Agenda • Revenue Model vs. Business Model • Startups and Revenue Models • Overview of Revenue Model Options • Software Industry Specifics • 7 Revenue Streams • Pricing Strategy • Bottom Line
  • 3. Business Model vs. Revenue Model • Business Model is Who, What, When, Why, and Where • Business Model includes Revenue Model • Revenue Model is how you make money • Revenue Model derived from 7 streams • Without a Revenue Model, there is no business
  • 4. Startups and Revenue Models • Does a Startup Need a Revenue Model? • Freemium Is Dead (Free = Zero Value!) • Ad-based businesses are dead • You can’t know what the revenue model will be until you talk to potential customers • You MUST consider this early in the product lifecycle
  • 5. Overview of Revenue Model Options • 7 Different Ways to Make Money • You can have an overall Revenue Model that pulls from all 7 streams • Don’t leave money on the table; Monetize Everything • Let the Market dictate your revenue model • Absolutely NOT only valid for Software Companies
  • 6. Software Industry Specifics • Separate Delivery Model from Revenue Model • SaaS does not require Subscription Billing • On-Premises does not require traditional pricing strategies • Let the Market Dictate Revenue Model
  • 8. 7 Revenue Streams • During seminar we go into details of each revenue stream
  • 9. Pricing Strategy • Avoid competing on price but instead on value • Know the market • know how and what the competition charges • know how and when your customers buy and who is involved • know the value you bring to avoid commodity pricing • CAPEX vs. OPEX only matters if the market says it does
  • 10. Bottom Line • No Revenue Model means No Business • If you can Cure a Pain, you can Generate Revenue • If there is no pain, the best revenue model will not help • Until Someone Pays You, Its Just an Idea
  • 11. Until Someone Pays You, Its Just an Idea http://sixteenventures.com