revenue models

Revenue Models from a Network perspective

Loïc Bar – NOV 20014

lba@opinum.com

Principle

Production modelProduction modelSubscription modelSubscription model

Pay as you go modelPay as you go model

Markup modelMarkup model

Advertising modelAdvertising model

Licensing modelLicensing model

Your are not alone

Revenue Model

• When you start:– A product / service– Targeted customers

• Company grows: How does your revenue model help

to keep growing?

Business Model

Missing something…

Revenue Model

• What change because of your practice your

business?

• What are your impacts on the Network ?– Possitive – Negative

Business Model

Externalities

Plan for it

• Don’t let others build a revenue model on your

negative externalities:- You loose the positive credit- You loose money

Sustainable

• Externalities help you to define a sustainable

revenue model

• Especially if you look at negative externalities and

tackle them!

Example #1

• Positive externalities:– Better insulation – Better for environment for everyone– …

• Negative externalities:– A lot of waste that cost money

Example #1

• They lower costs and make revenues:–By recycle waste when they install a new roof–They garantee to take back the waste when the roof need to be replace – may be 10 to 15 years after they install -> no cost for client.

Example #2

• Positive externalities:– People earn money– People get cheaper stay around the world– …

• Negative externalities:– Neighbors – Insurance

Example #2

New revenue model: commission model

Example #3

• Positive externalities:– Greener world– Less CO2 produced– …

• Negative externalities:– A lot of waste on hardware

Example #3

• Initially, big part of revenue model based on hardware sales

• Changed to focus on platform and hardware reuse– Competitive advantage– Bigger margin – Sustainable

Positive externalities

• Positive externalities can be exponential in a

Network– Facebook

• Value increases if your friends are on it

– Energy Impact• Collective intelligence module• Benchmark against peer groups. • More building in, more insights from benchmark

Summary

• Think about your impact on the network

• List externalities– Improve positive one to create more value– Tackle negative to create a new revenue model

Let’s talk

Loïc Bar

lba@opinum.com

http://twitter.com/loicbar