A short and simple approach for 4 basic revenue models. The innovation is in the combination

1. 4 basic ways of
a quick overview with a simple
generating revenues model
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2. 1. get paid by the hour
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3. hours x fee = revenue
variability depending on numbers
of declarable hours and height of
the fee
Always limited by both available
hours per week and the market
fee level
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4. Examples: window cleaners, lawyers, webdesigners, consultants
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5. 2. indirect
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6. number of users x
value per user or user
activity = revenue
the service is paid for by another
than the user
the supplier has an interesting
user base for a financier
a value per user or user activity
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7. Examples: online services (advertising), free newspapers (advertising),
sales commission
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8. 3. subscriptions
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9. subscriptions x fee =
revenue
periodic payments (day, month,
year)
products or services
continuous stream
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10. Examples: magazines, hosting, service level agreements, newspapers,
telephony, premium linkedin etc.
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11. 4. margins, lump sum, per usage
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12. price x numbers of
units sold = revenue
mainly demand based
margins depend on market
high margin-low volume
low margin-high volume
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13. Examples: groceries, houses, watches, art, cars, projects, etc...
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14. the innovation is in the combination, some
examples
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15. cars/lump sum with subscription service/connected drive
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16. webdesigner/paid by the hour with subscription/service level
agreement
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17. Magazines/subscriptions with one off specials/lump sum
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18. Free services/indirect with subscription/premium services
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19. what is your new combination?
who can pay for your service?
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20. @raymondwitvoet
innovation consultant
www.raymondwitvoet.nl
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