How Will You Make Money? Revenue Model Design

1. =
Business Model Innovation
by @nickdemey / co-founder www.boardofinnovation.com

2. Hi.

4. I’m Nick
from Belgium
intro via 3 books

5. BOOK 1

6. BOOK 2

7. BOOK 3

8. “It’s our goal to make corporates
innovate like startups.”
mixing proven methods from
Design Thinking & Lean Startup

9. Innovation strategy & execution
e.g. design & run an internal accelerator
Talent Development
e.g. Intrapreneurship training
Find
the right
people!

10. strong network & culture of sharing
Mexico
LinkedIn Group:
+20K people
Slideshare Channel
+5 Million views
Sharing of
tools & inspiration
+10000 subscribers
subscribe to
newsletter
FEATURED IN

11. for Fortune500 & global innovation leaders
Heavy industry/manufacturing
Utilities/Chemicals/Pharma
Commodities/Automotive/…
Banking/Finance/Payroll/HR
Telco/Publishing/Travel/
FMCG/…
B2B
B2B2C & B2C
Tokyo

12. How we got started: Business Model Innovation

13. A plan to monetize your startup idea?
https://vimeo.com/79954057

14. Business Model
Innovation
?

15. Business Model in a nutshell
An organization’s logic of creating,
delivering and capturing value.
just to make sure we’re all on the same page…

16. Business Model in a nutshell
An organization’s logic of creating,
delivering and capturing value.

17. Business Model in a nutshell
An organization’s logic of creating,
delivering and capturing value.

18. Business Model in a nutshell
An organization’s logic of creating,
delivering and capturing value.

19. Business Model in a nutshell
An organization’s logic of creating,
delivering and capturing value.

20. Business Model in a nutshell
An organization’s logic of creating,
delivering and capturing value.
So many options to
make money, experiment with
pricing & revenue models,…

21. No magic.
Extra money?

22. Remember this one?

23. Remember this one?
1 million pixels to sell = 1 million dollar #awesome

24. Copy & Remix.
An easy exercise to start.

25. Airbnb

26. Airbnb
of Food.
of Parking.
of Boats.

27. AirBnB of ….
“Matchmaking people
to make money from assets
they own.”

28. Uber of X.

29. Uber of ….
“on-demand
service via an App”

30. But…

31. Tinder

32. Tinder
of Jobs.
of Fashion.
of Shopping.

33. Tinder of ….
“Swipe based matching”
not a business model pattern,
more about the interface.

34. Understand the patterns!

35. You are in the center!
Your own venture

36. Business Model transactions
Focus to make this flow as smooth as possible. #frictionless

37. Can be more complex.
Many different players, a lot of monetary transactions.

38. Business Model Blocks

39. Seats2meet - Co-working with Dynamic prices
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure

40. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Indiegogo & KickStarter - Crowdfunding

41. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Cardrops - Delivery service

42. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Sell right to exploit roofs for solar energy

43. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Runkeeper tracks your runs

44. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Runkeeper gives you discounts

45. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
ZombiesRun - Running as a game

46. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Carrot > To-do list with a personality

47. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Carrot > To-do list with a personality

48. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Virtual currencies - Bitcoin

49. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Moskou: Pay with Exercises

50. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Pay with social reach

51. Crucial question!

52. Learn from gaming.
Question:
Do you allow people to spend (all their) money?

53. The key questions
you need to ask:
What is the best new business model to try?

54. Business Model Innovation
where to find new growth for your business.
Explore extra
revenue sources!

55. Different categories:

56. + specific examples

57. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.

58. Free?
Free = Free
There are so many variations on ‘free’

59. What to pick?
Free!
for the user.
1.
- Early exit -

60. Free
(Hidden) other agenda:
- Aim for an early exit.
- Acqui-hire
- Prestige
- …
Rule of thumb:
There is no free lunch.

61. What to pick?
Free!
for the user.
1.
- Early exit -
- Pay-what-you-want -

62. Free?
Customer can pick
his own price.
Pay-what-you-want. (including free)

63. Case: Humble Bundle

64. Pay-what-you-want: Restaurants, Museums,…
Emotional connection
Social/group pressure
…

65. What to pick?
Free!
for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -

66. Free?
Main difference:
People often get the product for free, but are
free to do an extra transaction.
Tip jar - Donation.

67. Free, for some.
Different segments of
users.

68. What to pick?
Free!
for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -
- Barter -

69. Swap goods, give something else in return.
Many Facebook groups & events: baby clothes, travel,…

70. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Reason why people upgrade!

71. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -

72. Some people only want “the best”
Ultimate luxury. €21.000 Smartphone (Vertu)

73. Vanity, reputation…
Vanity is so powerful!

74. Looks & Reputation in games.
To fit in Exclusivity Show Commitment ...

75. Important learning: You need other people to show off!

76. First class sells - because of second class.

77. Pay to get noticed. (above the crowd…)
Would you pay to get seen by your friends on Facebook?
Facebook 2012

78. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -

79. Another tactic: Lure people in with free + lock-in.
Just give it a try!

80. Lock-in (switching costs, hassle,..)

81. Pay-as-you-go model.
Switching cost?

82. pay-per-use.
Blendle - itunes for journalism (buy per article)

83. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -

84. Privacy features are very powerfull!
Hide your profile.
Incognity mode.

85. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -

86. Mystery crates (& surprise upgrades)
similar to Lottery system = very lucrative!

87. Real life mystery crate

88. Blind dates, anyone?
Crazy Blind Date by OKcupid. (up to $3/date)

89. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Convenience/ Shortcuts -

90. Use Sold. The convenient way to sell goods online.
The Gone App: 1 photo to sellHomesnap: 1 photo to get info

91. The (ex-) power of Zynga-like games.
Grind - Spam - Pay

92. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Convenience/ Shortcuts -
- Helping peers/ gifts -

93. This one is on me…
Yes, Awesome.
I’m a PLUS member.

94. Virtual gifts to friends.
Line messaging app is one to keep an eye on!

95. Next Chapter.

96. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.

97. What to pick?
Third party
pays the bills.
3.
- Advertising -

98. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -

99. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -

100. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -

101. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -

102. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -
- Get-one-give-one -

103. another client pays for your product. (could be anymous)

104. Suspended coffee

105. One Laptop Per Child

106. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
Can be a mix of all three.

107. Broker/
Matchmaking
4.
- One-side pays -

108. One side pays.

109. Get paid to date?
Very controversial
of course.

110. Get paid to date.
Other platforms experiment with other rewards than money.

111. Broker/matchmaking
Broker/
Matchmaking
4.
- One-side pays -
- Both sides pay -

112. Matchmaking between 2 normal users.
only 1 of the 2 parties pays.

113. Auction platforms.

114. Broker/Matchmaking
Broker/
Matchmaking
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -

115. Crowdfunding (many variations)
For pre-sales?
Investment?
Donation?

116. Crowdfunding
The product itself is often not the primary driver:
“Be part of something bigger, a revolution in …”

117. Broker/
Matchmaking/
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -

118. Penny Auctions

119. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
Mixed model
Subsidised
5.

120. Mixed model
Subsidised
5.
- Shop (on the side) -

121. Mixed model
Subsidised
5.
- Shop (on the side) -
- Razor-blade (add-ons) -

122. Mixed model
Subsidised
5.
- Shop (on the side) -
- Razor-blade (add-ons) -
- Credits/points -

123. No easy fix.
But experiment
& learn!

124. Invent the future!
where to start?

125. Understand the patterns!

126. Next Chapter.

127. Why does this person get a +120M€ contract?

128. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.

129. What to pick?
Third party
pays the bills.
3.
- Advertising -

130. Every ad-based model.
The user becomes
the product.

131. Ad-business is straight forward. but hard.
Offer content.
Control eyeballs
Steer attention to ads
Profit.

132. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -

133. Drive sales for another.
Affiliate & Referral models.

134. Integrated referral links?
Pinterest is the perfect match!

135. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -

136. Resell data.
One company is more transparant than the other.

137. What’s the value of your own personal data?
Resell your own data via a platform:
example Citizenme.

138. Example: Patients like me.

139. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -

140. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -

141. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -
- Get-one-give-one -

142. another client pays for your product. (could be anymous)

143. Suspended coffee

144. One Laptop Per Child

145. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
Can be a mix of all three.

146. Broker/
Matchmaking
4.
- One-side pays -

147. One side pays.

148. Many dating platforms are based on this model.

149. Get paid to date?
Very controversial
of course.

150. Get paid to date.
Other platforms experiment with other rewards than money.

151. Broker/
Matchmaking
4.
- One-side pays -
- Both sides pay -

152. Matchmaking between 2 normal users.
only 1 of the 2 parties pays.

153. Auction platforms.

154. AirBnb & other broker platforms

155. Broker/
Matchmaking
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -

156. Crowdfunding (many variations)
For pre-sales?
Investment?
Donation?

157. Crowdfunding
The product itself is often not the primary driver:
“Be part of something bigger, a revolution in …”

158. Get a return of an investment in someone else.

159. Broker/
Matchmaking/
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -

161. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
Mixed model
Subsidised
5.

162. Mixed model
Subsidised
5.
- Shop (on the side) -

163. Mixed model
Subsidised
5.
- Shop (on the side) -
- Razor-blade (add-ons) -

164. Pay for recurring upgrades or consumables
Offer part of your service for
free (or nearly free)

165. Open Source model with paid consulting support

166. Ryanair-like no-frills models.

167. Mixed model
Subsidised
5.
- Shop (on the side) -
- Razor-blade -
- Credits/points -

168. Combine concepts

169. www.glowing.com
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy

170. www.glowing.com
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
Data
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
support

171. www.glowing.com
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
conceiving
Data
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
++ % of Money Pool
% of Money Pool
support

172. www.glowing.com
inFertility Treatment Partner
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
conceiving
IncIncIncInc
Company
Data
IncIncIncInc
Company
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
++ % of Money Pool
% of Money Pool
5
Less Money
5
Money
Data Exposure
support

173. www.glowing.com
inFertility Treatment Partner
Paying Users
IncIncHQHQ
Glow
IncIncHQHQ
Glow First Fund
Preganant*
Enganging User
Not Pregnant*
"Normal" User
Not Pregnant*
5
€50/Month
Insurance &
Extra Guidance
conceiving
IncIncIncInc
Company
Data
IncIncIncInc
Company
Non-Paying user
Data
Predictions & Tasks
to increase pregnancy
++ % of Money Pool
% of Money Pool
5
Less Money
R&D
IncIncIncInc
Labo
5
Money
Data
Universities
5
Money
User Data
Exposure
support

174. - extra -

175. Juli 11, 2036

176. Job of the future?
Jobs that will disappear?

177. Job of the future?
Jobs that will disappear?

178. Change*

179. Tech change
& Societal change.

180. Understand & Detect Exponantial Growth

181. Example
11am
12pm

182. Example
11am
12pm

183. Example
11am
12pm

184. Example
11am
12pm

185. Example
11am
12pm

186. Example
11am
12pm

187. Example
11am
12pm

188. Example
? am

189. Example
11:59am

190. Example
11:55am
3%

191. Example
11:00am
11:55am

192. Example
11:00am
11:55am
Based on our experience
of the last 55 years,
what will happen
the next 5 years?

193. Impact?

194. Impact of exponential
Tech Change.

195. Example (all driven by technology)
It becomes easier & easier to pay someone
It becomes easier & easier to follow peers
It becomes easier & easier to know what you like
…

196. Focus on Kickstarter
Total funding?

197. Focus on Kickstarter

198. Pebble Time
Total funding?

199. Original Pebble Watch
2012
$10.266.845
Time needed to
get 1M dollar?

200. Original Pebble Watch
2012
$10.266.845
Time needed to
get 1M dollar?
28 Hours

201. Ouya, gaming console
Time needed to
get 1M dollar?
28 Hours
8 Hours

202. Ouya, gaming console
Time needed to
get 1M dollar?
7 Hours
28 Hours
8 Hours

203. Pebble Time
Time needed to
get 1M dollar?
7 Hours
28 Hours
8 Hours
0 H 44 min

204. Oculus Rift
+$2M on Kickstarter

205. Oculus Rift
Oculus Rift acquired by Facebook for 2 Billion Dollar
2 year after launch.
+$2M on Kickstarter

206. Traction? = Acquired as it happens.
Mailbox, acquired by Dropbox for $100M
1 month after launch.

207. Is this where we’re heading at?
1 day startups
get acquired for
$1 Billion
This to illustrate the pace of change
that impacts the context of companies.

208. Thanks!