YOUR BUSINESS MODEL IS THE PRODUCT
Oct 19, 2014
YOUR BUSINESS MODEL IS THE PRODUCT
EVENTUALLY YOU WILL WANT TO EXCHANGE CURRENCY INTO CASH
SO WHO IS GOING TO PAY YOU?
BUSINESS MODEL PATTERNS
LOW MARGINHIGH VOLUME
HIGH MARGINLOW VOLUME
LOW MARGIN HIGH VOLUME
NORMALLY B2CLOW TRANSACTION COST
LARGE CUSTOMER SEGMENT
LOW MARGIN HIGH VOLUME
GROWTH HYPOTHESISSIZE OF MARKET
KEYVALIDATIONS
HIGH MARGIN LOW VOLUME
NORMALLY B2BHIGH TRANSACTION COST
SMALL CUSTOMER SEGMENT
HIGH MARGIN LOW VOLUME
PROBLEM HYPOTHESISPRICE SENSITIVITY
KEYVALIDATIONS
SUBSCRIPTION
AUDIENCEAGGREGATION
CAPITAL
SERVICE SHAREDRESOURCE
RESALE
LOAN
AGENCY
INSURANCE OPTION
PRODUCT
LEASE
MANUFACTURE TANGIBLE ITEMS WHICH YOU SELL FOR MORE THAN THEY COST
PRODUCT
CARSFMCGiPODS
PROVIDE HELP TO OTHERS IN EXCHANGE FOR A FEE
SERVICE
HAIRDRESSERSAIRLINES
CONSULTANTS
CHARGE FOR ACCESS TO AN ASSET WHICH CAN BE SHARED AMONGST MANY
PEOPLE
SHARED RESOURCE
GYMSTHEME PARKSiPHONE APPS
PROVIDE VALUE ON AN ONGOING BASIS IN RETURN FOR A RECURRING FEE
SUBSCRIPTION
SATELLITE TVSOFTWARE AS A SERVICE
SUBSCRIPTIONKEYVALIDATIONS
COST PER ACQUISITION < LIFETIME CUSTOMER VALUE
PROBLEM/SOLUTION HYPOTHESISWILL THEY PAY TO SOLVE THIS?
WILL THEY PAY YOU?
SUBSCRIPTIONKEYVALIDATIONS
CPA FACTORS
MARKETING BASED ACQUISITION - PAIDREFERRAL - FREE
SUBSCRIPTIONKEYVALIDATIONS
LTV FACTORS
SUBSCRIPTION PLAN COSTATTRITION
BUY LOW SELL HIGH
RESALE
E-RETAIL
CHANNEL HYPOTHESIS
RESALEKEYVALIDATIONS
BROKER OR MARKETPLACE. MARKETING AND SELLING AN ASSET YOU DON’T OWN
AGENCY
E-BAYGROUPON
VALIDATING BUYER AND SELLER HYPOTHESIS
PRICE SENSITIVITY
AGENCYKEYVALIDATIONS
COLLECTING ATTENTION THEN SELLING ACCESS TO THAT AUDIENCE
AUDIENCEAGGREGATION
BROADCAST TVCONTENT SITES
GROWTH HYPOTHESIS VALIDATING WITH MARKETERS
AUDIENCEAGGREGATION
KEYVALIDATIONS
FREE
THERE IS NO SUCH THING AS A FREE PRODUCT
NON-PAYING CUSTOMER SEGMENTIS FUNDED BY A DIFFERENT PAYING
CUSTOMER SEGMENT
FREEMIUM GENERALLY MEANS THE GIVING AWAY A BASIC PRODUCT AS
AN ACQUISITION STRATEGY
AND SELLING THE ADVANCED PRODUCT
TRIAL PERIODS ARE NOT FREEMIUM
THE MARGINAL COST OF SERVICING FREE CUSTOMERS IS CLOSE TO ZERO
BUT PROVIDES OTHER VALUE(MARKETING, DATA)
KEYVALIDATIONS
CONVERSION HYPOTHESIS
KEYVALIDATIONS