Roger Lloyd-Lunch & Learn Presentation October 14, 2016
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Lunch and Learn REVENUE TYPE by Roger Lloyd
Transcript of Roger Lloyd-Lunch & Learn Presentation October 14, 2016
Lunch and LearnREVENUE TYPE
by Roger Lloyd
My Background
CEO of video game franchise (2 pricing requirements)
President of service based franchise
COO of service based franchise
CEO of software company
Managing Director of sta�ng company
Goal of Today
Types of Business Models
Why is it so confusing to choose a Revenue Model
Types of Revenue Models
Topics
Target customer
Sales Style
Heavy or light customer count (unicorns or horses)
Revenue model bases on cost plus or top down
Business Models
Any business will fall in to one of 4 categories
Products or services (retailers, restaurants)
Aggregator (newspapers)
Broker (real estate)
Reseller (Amazon, Best Buy)
Why is it Hard to Choose a Revenue Model
Number of decisions unlike the business model itself
What type of revenue
Where do you fall (B2B vs B2C, or both)
How are you going to distribute
Who is your competition
Pricing/margin
Partnerships
Revenue Models
Retail (goods and services, both digital and brick and mortar)
Subscriptions and usage fees (subscriptions, rentals)
Licensing (license of usage, certi�cation)
Auctions and bids (Ebay)
Advertising (sponsored content, advertising, sponsorships)
Data
Transactions/Intermediation (brokerage, a�liate, connector)
Freemium (no advertising, unlimited, additional content)
Interest (banking)
Asset management (% of funds)
Arbitrage (currency)
How do you choose
First determine if you are selling B2B or B2C
Determine price sensitivity (public pricing vs non public pricing)
Determine support requirements
Customer support is very di�erent for each
Marketing/sales methodology (Channel sales, advertising vs direct sales)
Determine whether premium, low cost or middle pricing (based on competition)
Additional Factors to ConsiderMarket Potential / Size
Competitive Landscape
Ideal Customer
Value Proposition
Distribution Channels
Strategic Relationships
Intellectual Property
Hard Costs
How many clients to successful pro�tability or exit
Verticals to enter based on size
Case Study 1
Pericia Solutions – sta�ng solution
Revenue monthly fee
Competition – medium
Price sensitivity – US wage driven plus hard costs
Goal – 1000 sta�ed people
Top verticals – franchising/early stage tech
A�liate but limited
B2B only
Case Study 2
Amada Senior Care – caregiver, healthcare, sta�ng
Hourly fee
Competition – high
Price sensitivity – US wage driven plus hard costs
Goal – 200 franchisors
B2C
S E N I O R C A R E
Case Study 3
PlayNTrade – video game franchise
B2C – 2 clients – franchisees, and consumers
Commodity driven pricing
Royalty to zee’s, driven by low product margins
COMPARISON BETWEEN 2 PRODUCTS
TOMATO PASTE
High competition
Many options for consumers
Selling to grocery stores
NEW PATENTABLE SOFTWARE IN ADOPTION INDUSTRY
Almost no competitors
Pricing is based on what someone will pay vs price barriers from competition or hard costs from goods
Very emotional sale
Potential patent
Take Away’s
Just make a decision, you do not have to tackle everything at once. I.e. start with B2C and add B2B later.
