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Revenue Models from a Network perspective
Loïc Bar – NOV 20014
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
http://twitter.com/loicbar
