This presentation is about how the Revenue Model is different from the Business Model.Which was another mysterious question to me,I hope it will help you to get to know about how to Design Revenue Model.Thank You.

1. Revenue Model
Vivek Deshmukh
Email id:- vsdrocks467@gmail.com
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2. What is Revenue Model ?
• key component of a company's business model.
• It identifies which revenue source to pursue, what value to offer, how to
price the value, and who pays for the value.
• With a clear Revenue Model a business can focus on a target audience, fund
development plans for a product or service, establish marketing plans, begin
a line of credit and raise capital.
• A revenue model is an exchange of value.
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3. Point to Remember :-
• Your customer may not be your consumer
• Revenue model does not equal business model
• Revenue model impacts all areas of business(brand, sales, operations,
finance).
• Each model has advantages and disadvantages.
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4. How to Develop Revenue Model :-
• Identify target customer
• Determine value proposition
• Evaluate revenue model options
• Select revenue model
• Adapt and adjust
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5. Types of Revenue Models :-
• Advertising model - Examples include Google and Taobao Mobile applications
also use this specific revenue model to generate revenues. By incorporating some ad
space, many popular apps such as Twitter and Instagram have strengthened their
mobile revenue potential after previously having no real revenue stream.
• Commission model - Brokerage companies or auction companies often use it as
they provide a service as intermediaries and generate revenue through commissions
on the sales of either stock or products.
• E-commerce model
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6. Types of Revenue Models :-
• Fee-for-service model - unlike in the subscription model, the business only
charges customers for the amount of service or product they use. Many phone
companies provide pay as you go services whereby the customer only pays for the
amount of minutes he actually uses.
• Licensing model - the business that owns a particular content retains copyright
while selling licenses to third parties. Software publishers, Media companies use this
model.
• Subscription model - the business provides a product or service to a customer
who in return pay a pre-determined fee at contracted periods of time to the
business.
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7. Types of Revenue Models :-
• Production model - the business that creates the product or service sells it
to customers who value and thus pay for it.
• E-tail - an increasing amount of retailing is e-tailing, done online using
electronic payment and delivery via a courier or postal mail.
• Wholesale - it is the sale of goods to anyone other than the end-consumer.
• Markup model - the business buys a product or service and increases its
price before reselling it to customers.
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8. Types of Revenue Models :-
• Freemium model - the two aspects of the business model: "free" and
"premium". It has become a highly popular model, with notable success.
• Nagware - type of shareware that persistently reminds (nags) the user to
register it by paying a fee.
• Donationware - a licensing model that supplies fully operational
unrestricted software to the user and requests an optional donation be paid
to the programmer or a third-party beneficiary.
• Shareware - users are encouraged to make and share copies of a software
product, which helps distribute it.
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10. References :-
• https://www.cmu.edu/cie/images/connects/workshop-material/revenue-
models.march-2015.pdf
• http://www.1000ventures.com/business_guide/revenue_model.html
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11. Thank
You!!!
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