LLP@TecnicoClass 7

Luis Caldas de Oliveira

Agenda for Class 7

• Q&A about Revenue Model

• Team Presentations: Revenue Model Findings

• Summary about Partners

• Work for Next Week

Q&A REVENUE MODEL

Strategy & Tactic

Revenue Model ≠ Pricing

TacticStrategy

Revenue Model• Asset sale

Ford

• Usage fee

Vodafone

• Subscription fee

salesforce.com

• Rent

Avis

• Licensing

MS Office

• Intermediation

Airbnb.com

• Advertising

Google

Revenue Model Choices

Pricing(ways to charge)

Fixed

Cost + profit(product based)

Value priced(customer based)

Volume priced(encourage volume)

Dynamic

Negotiation(second hand)

Yield management(airplane ticket)

Real-time market(stock market)

Auctions(ebay)

Common ErrorsUse “all-of-the-above” revenue models: license, direct sales, affiliates, etc.

The reason to select a specific revenue model is unclear

Lack of understanding of how customers buy today.

What do competitors charge?

Is the profit sufficient?

Metrics that MatterValue proposition: product cost, attainable market, etc.;

Customer relationships: CAC, conversion rate, LTV, etc.

Market type: different revenue curves;

Cost structure: operating costs, etc.;

Channel: channel margins, etc.;

Revenue Streams: selling price, number of customers, etc.;

Burn rate: company spending per month.

TEAM PRESENTATIONS: REVENUE MODELS

PARTNERS

Key Partners

Partner

Types of Partners

Strategic AlliancesApple + Record Labels

Joint Business DevelopmentIntel Inside

Coopetitionwi-fi 802.11b/g/n

Key SuppliersOutsource suppliers: Apple + FoxconnDirect suppliers:Logoplaste

Virtual Channels (web)Expedia

Partner Relationship Diagram

NEXT WEEK

Presentation for Next Week

• Slide 1: Cover slide

• Slide 2: Business Model Canvas (changes marked in red, different colors for multi-sided markets)

• Slide 3: Hypotheses about what partners are needed? Why?

• Slide 4: Diagram the partner relationship with money flows. What are the incentives and impediments for the partners?

• Slide 5: Lessons learned from interviews with potential partners.

Before Next Class• Talk to at least 10 customers, including

partners

• Update LPC Narrative and Canvas

• Work on your MVP

• Prepare Class Presentation

• Watch Lecture 8: Resources, Activities and Costs

Obrigado