the right business model?
How to choose
flickr cc basheertome
by @boardofinno - @nickdemey

In this deck +100 slides
5 categories of Business Models

In this deck +100 slides
5 categories of Business Models
+ specific examples

Business Model Innovation
Looking for Training?
Show 2 Day Program
or mail us via
hello@boardofinnovation.com

No magic.

Remember this one?

Remember this one?
1 million pixels to sell = 1 million dollar #awesome

But it is not always that easy…
This summer I was keynote speaker/mentor
at the European Innovation Academy.
In this deck are some of the tips & tricks I shared,
relevant for those who are looking for monetisation options
by focusing on different business model types.
@nickdemey

Copy & Remix.
An easy exercise to start.

Airbnb

Airbnb
of Food.
of Parking.

Airbnb
of Boats.
of Storage.

Netflix

Netflix
of Books.
of Toys.

Netflix
of Clothing.
of Games.

Tinder

Tinder
of Jobs.
of Fashion.

Tinderof Real-estate.
of Shopping.
Tinder

Understand the patterns!

You are in the center!
Your own venture

Business Model transactions
Focus to make this flow as smooth as possible. #frictionless

Can be more complex.
Many different players, a lot of monetary transactions.
Learn more on how to use
our business model icons?

The key questions
you need to ask:
What is the best new business model to try?

Several exciting industries to learn from:
News/ Publishing
Dating
Gaming

What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.

Free?
Free = Free
There are so many variations on ‘free’

What to pick?
Free!
for the user.
1.
- Early exit -

Free
(Hidden) other agenda:
- Aim for an early exit.
- Acqui-hire
- Prestige
- …
Rule of thumb:
There is no free lunch.

What to pick?
Free!
for the user.
1.
- Early exit -
- Pay-what-you-want -

Free?
Customer can pick
his own price.
Pay-what-you-want. (including free)

Case: Humble Bundle

Other industries
#win #fail
Emotional connection
Social/group pressure
…
selling to businesses
social/group pressure
…

What to pick?
Free!
for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -

Free?
Main difference:
People often get the product for free, but
are free to do an extra transaction.
Tip jar - Donation.

Free, for some.
Different segments of
users.

What to pick?
Free!
for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -
- Barter -

Swap goods, give something else in return.

What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Reason why people upgrade!

Free, but pay for extra features

What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -

Some people only want “the best”
Ultimate luxury. 12K€ Smartphone (Vertu)

Vanity, reputation…
Vanity is so powerful!

Looks & Reputuation in games.
To fit in For exclusivity To show commitment ...
Gamers pay:

Important learning: You need other people to show off!
You need enough ‘noobs’ or starters on
your platform, to make other people feel
important #1337

Pay to get noticed. (to rise above the crowd…)
Would you pay to get seen by your friends on Facebook?
Facebook 2012

What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -

Another tactic: Lure people in with free + lock-in.
Just give it a try!

Pay-as-you-go model.
Switching cost?

Pay-as-you-go model.
Switching cost? A lot of hassle to change to a competitor…

Similar, pay-per-use.
Blendle - itunes for journalism
You only pay for those news articles that your read.

What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -

Privacy features are very powerfull!
Hide your profile.
Incognito mode.
Pay to stay private
(dating business models)

What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -

Mystery crates (& surprise upgrades)
similar to Lottery system = very lucrative!

Real life mystery crate (on subscription)
Trust & credibility created by 1 person (not a company)
Example: curated.nl

Blind dates, anyone?
Crazy Blind Date by OKcupid. (up to $3/date)
Rate your dating partner (during the date).
The higher your rate your partner, the more you pay
to OKcupid.

What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Convenience/ Shortcuts -

Use Sold. The convenient way to sell goods online.
Hassle free online reselling of goods.
You take a pic of the product you want to sell.
UseSold sends an empty box & puts money on your account.

The power of Zynga-like games.
Grind - Spam - Pay
Just click 5000 times to
grow a plant.
Invite 50 friends
to go faster.
F*ck it. I’ll just buy
extra coins to get this plant

Our own experience :)
Colleague of us (accidentally) spams all our clients with
dating/chat invites. #awesome.

What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Convenience/ Shortcuts -
- Helping peers/ gifts -

This one is on me…
Yes, Awesome.
I’m a PLUS member.
You can help your
contacts by giving them
free access to in-depth
articles.

Virtual gifts.
Line messaging app is one to keep an eye on!
Selling virtual items, gifts,
stickers, is one of the most
lucrative things to do.

Crucial question!

Learn from gaming.
Question:
Do you allow people to spend (all their) money?
Don’t let people pay just once for your product.
Think: add-ons, subscriptions,…
Learn more from “Whales” in the gaming industry.

Next Chapter.

Why does this person get a +120M€ contract?

What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.

What to pick?
Third party
pays the bills.
3.
- Advertising -

Every ad-based model.
The user becomes
the product.

Ad-business is straight forward. but hard.
Offer content.
Control eyeballs
Steer attention to ads
Profit.

What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -

Drive sales for another.
Affiliate & Referral models.

Integrated referral links?
Pinterest is the perfect match!

What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -

Resell data.
One company is more transparant than the other.

What’s the value of your own personal data?
Resell your own personal data via:
citizenme.com

Example: Patients like me.

What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -

What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -

What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -
- Get-one-give-one -

another client pays for your product. (could be anymous)

Suspended coffee
Pay an extra coffee for the person after you. #charity

One Laptop Per Child
Pay double the price so someone
else could get a laptop for free.

What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
Can be a mix of all three.

Broker/
Matchmaking
4.
- One-side pays -

One side pays.

Many dating platforms are based on this model.
Often the women use the service for free.
Men need to pay.

Get paid to date?
Very controversial
of course.

Get paid to date.
Other platforms experiment with other rewards than money.

Broker/
Matchmaking
4.
- One-side pays -
- Both sides pay -

Matchmaking between 2 normal users.
only 1 of the 2 parties pays.

Auction platforms.
Different revenue streams for both parties involved.

AirBnb & other broker platforms

Broker/
Matchmaking
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -

Crowdfunding (many variations)
For pre-sales?
Investment?
Donation?

Crowdfunding
The product itself is often not the primary driver:
“Be part of something bigger, a revolution in …”

Get a return of an investment in someone else.
Invest in the education costs of a student.
Get a share of his/her future income.

Broker/
Matchmaking/
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -

What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
Mixed model
Subsidised
5.

Mixed model
Subsidised
5.
- Shop (on the side) -

Mixed model
Subsidised
5.
- Shop (on the side) -
- Razor-blade (add-ons) -

Pay for recurring upgrades or consumables
Offer part of your service
for free (or nearly free)

Open Source model with paid consulting support
Wordpress = free.
Consulting & plug-in support = paid.

Ryanair-like no-frills models.

Mixed model
Subsidised
5.
- Shop (on the side) -
- Razor-blade -
- Credits/points -

Combine concepts

How to combine different transactions?
A remarkable business model to learn from:

www.glowing.com
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy

www.glowing.com
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
Data
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
support

www.glowing.com
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
conceiving
Data
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
++ % of Money Pool
% of Money Pool
support

www.glowing.com
inFertility Treatment Partner
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
conceiving
IncIncIncInc
Company
Data
IncIncIncInc
Company
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
++ % of Money Pool
% of Money Pool
5
Less Money
5
Money
Data Exposure
support

www.glowing.com
inFertility Treatment Partner
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
conceiving
IncIncIncInc
Company
Data
IncIncIncInc
Company
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
++ % of Money Pool
% of Money Pool
5
Less Money
R&D
IncIncIncInc
Labo
5
Money
Data
Universities
5
Money
User Data
Exposure
support

li
Not just
- 1 campaign
- 1 product
- 1 company
Crowdfund the potential
of another person!
Key lessons & take-aways.
Learn to detect & understand the patterns.
Look in different industries!
Copy & Remix multiple models.

Business Model Innovation
Looking for Training?
Show 2 Day Program
or mail us via
hello@boardofinnovation.com

li
Not just
- 1 campaign
- 1 product
- 1 company
Crowdfund the potential
of another person!
Need extra support?
Feel free to reach out:
@nickdemey
www.boardofinnovation.com
Co-founder/
Business Designer.