What is a revenue stream? What are the two types of revenue streams? A revenue stream is simply a source of profit for a business—where the money comes from. Defining your revenue streams is one of the key elements of designing a business model for your company. There are two types of revenue streams in Business Model Canvas: 1) profits from single transactions, and 2) profits from ongoing payments such as subscriptions. We’ll discuss both of these elements below.
What is the freemium business model? How do freemium products generate revenue? The freemium business model is where a business gives away a limited suite of services for free and charge for a premium or additional features. The revenue from paying customers supports the costs incurred by the free users. In this article, we’ll take a look at the concept behind the freemium business model and explain the difference between freemium and free trial.
Why is it important to define the customer groups your business intends to target? What are the different types of customer groups? It’s important to identify and validate your customer groups before you develop your business model. There are five main types of customer groups: 1) mass market, 2) niche market, 3) subdivided market, 4) diversified market, and 5) multi-sided market. We’ll take a look at how to target each of these groups below.
What is the bait-and-hook business model? How do bait-and-hook businesses make a profit? The bait-and-hook business model is where a business sells the main product (for example, coffee machine or printer) at a low cost in order to generate profit by selling complementary products/refills/top-ups (for example, coffee capsules, printer ink) at a high price. In effect, businesses choose to initially make a loss in the hope of making a future profit from ongoing purchases. In this article, we’ll take a look at the concept behind bait-and-hook business models and how they generate revenue.
What is the open business model? How do companies with open business models create value for their customers? An open business model is where a business creates value through collaboration with external partners. There are two main ways to do that: 1) integrate their internal resources with the partner, or 2) supply their resources for a fee. We’ll break down both of these principles below.
What is the advertising revenue model? How do digital businesses make profits from advertising? The advertising business model is where a business makes revenue from selling advertising space to other businesses. This model is particularly common amongst digital platforms and popular websites because this model requires high traffic volume to generate meaningful revenue. In this article, we’ll take a look at the advertising revenue model and how it generates revenue.
Is it ever a good idea to do a product line extension? What are the advantages and drawbacks? In Positioning, Al Ries and Jack Trout outline the conditions that should be met before you do a line extension. They also explain why market leaders generally avoid line extensions. Keep reading to learn about the disadvantages of product line extensions and when it’s advisable to go in that direction.
Do you know how to name a product? Why is this your most important marketing decision? In Positioning, Al Ries and Jack Trout argue that selecting a product name that supports your claims is crucial to positioning your product in the market. They explain why you shouldn’t underestimate the power of a name and provide guidance on how to (and how not to) name a product. Continue reading to learn how to name a product to position it for success.
Is Mike Weinberg’s Sales Management. Simplified. worth reading? What is the key to sales success? In Sales Management. Simplified., Mike Weinberg discusses how to successfully manage a sales team, including setting goals that push people to excel, using shadowing to identify team weaknesses, and training your people to make good sales calls. He also discusses a factor that he sees as crucial to managerial effectiveness: managing your time wisely. Below is a brief overview of the key points.
Have you just launched your first product? What is the most affordable way to publicize it? As a startup, it’s unlikely you’ll have much to spare on promotion. The good news is that there are plenty of ways to promote your business without spending any (or much) money. In this article, we’ll share 10 principles of startup promotion on a tight advertising budget.