VIDEO SUMMARY: 00:00 The purpose and steps of outlining revenue streams - Helps to test hypotheses in the business model canvas - Involves four questions: how, who, how, and what to charge 0:55 How will you charge? - One-time or recurring fees, with or without support contracts - Asset sale, usage fee, subscription, renting, licensing, brokerage, or advertising 02:17 Who will you charge? - Freemium model: free users and premium users willing to pay for upgrade - Social media model: users and advertisers paying for ads 03:16 How will you price? - Fixed pricing: list price, feature based, customer segment, or volume based - Dynamic pricing: negotiation, time and availability, supply and demand, or auction 05:27 What is your price? - Customer preferences, competitive differentiation, positioning strategy, cost structure, and perceived value.... -> mark up from cost (to be profitable), mark down from customer perceived value (to be attractive), mark with competitors (to position and differentiate)
Thank you. Very concise, simple, practical and consisten information presentation. Great speaker - calm and nice to listen to, nothing extra that would make me not wanting to listen.
What works or doesn't work as a revenue stream is more a function of the business model and what fits the business. I'm not sure that there is any one revenue stream that one could label as "unsuccessful" generically, but there are certainly revenue streams that don't end up working out for specific businesses. For example, often a software company will prefer a "subscription" revenue model because it is recurring revenue. But a recurring revenue model only makes sense to customers if the software is something they are going to use more than once over time. If they are buying software to solve a one-time problem, and then they don't need it any more, then a subscription model probably wouldn't make sense to customers, and if the company tried using a subscription model in a case like that, then it probably would fail! So in customer discovery, it is important to test how you are going to charge for your product or service (i.e., what is the revenue stream or revenue model) in addition to how much you intend to charge. Both the way you charge and the amount you charge has to make sense to your customers.
How you charge would be the different approaches to getting revenue - like sell an asset (e.g., a retail sale) or charge a rental fee, or charge a commission, or charge a monthly subscription. Pricing gets into the question of once you decide how to charge, exactly how much will you charge? What is the purchase price? Or the rental fee? Or the commission fee? Or the monthly subscription amount? You do need to test customer acceptance of HOW you want to charge (i.e., if you want to charge a subscription instead of a 1-time fee, does that make sense to your customer as a way they should pay?) and you also need to test HOW MUCH you are charging (is your asset sale price too high or low? Or is your subscription fee too high or low?).
I see that this video got quite a few views from Universitas PGRI Adi Buana. If you happen to be there, please pass along my thanks to whoever published the link! (And I wish I did have an Indonesian translation...)
Simple and precise. No unnecessary sidetalk. Kudos....
Thanks!
Love this! Thank you so much!
you literally saved me for my presentation tomorrow at University!!!! thankssssss
Glad I could help!
Hey! Just so you know, I appreciate these videos. Your easy to follow, and it is helping me a lot.
Thanks - it's good to hear that they help!
You have made all this so easy for me. Thank you so much
You are so welcome!
VIDEO SUMMARY:
00:00 The purpose and steps of outlining revenue streams
- Helps to test hypotheses in the business model canvas
- Involves four questions: how, who, how, and what to charge
0:55 How will you charge?
- One-time or recurring fees, with or without support contracts
- Asset sale, usage fee, subscription, renting, licensing, brokerage, or advertising
02:17 Who will you charge?
- Freemium model: free users and premium users willing to pay for upgrade
- Social media model: users and advertisers paying for ads
03:16 How will you price?
- Fixed pricing: list price, feature based, customer segment, or volume based
- Dynamic pricing: negotiation, time and availability, supply and demand, or auction
05:27 What is your price?
- Customer preferences, competitive differentiation, positioning strategy, cost structure, and perceived value.... -> mark up from cost (to be profitable), mark down from customer perceived value (to be attractive), mark with competitors (to position and differentiate)
Thank you. Very concise, simple, practical and consisten information presentation. Great speaker - calm and nice to listen to, nothing extra that would make me not wanting to listen.
You're very welcome!
Very informative and easy to understand.
Brilliantly simple and easy to understand. Thank you!
Really enjoy your videos - super helpful! Did you end up making another video on "willingness to pay" or "perceived value?" Thanks again!
Not yet! But it's in process.
Thank you very much, very helpful videos, We appreciate the effort.
You are welcome!
The explanation is very understandable.
Thanks!
Thank you! A very helpful video. It was so easy to follow.
Glad it was helpful!
Thank you Sir , very informative
Thank you for educating me.
Hi,I worked on medicine company..what his revenue streams.. kindly guidance me
much appreciated Sir
very helpful video. Thank you
Super helpful!
thank you so much
You are welcome!
Is there a failed or unsuccessful "revenue stream" ?
What works or doesn't work as a revenue stream is more a function of the business model and what fits the business. I'm not sure that there is any one revenue stream that one could label as "unsuccessful" generically, but there are certainly revenue streams that don't end up working out for specific businesses. For example, often a software company will prefer a "subscription" revenue model because it is recurring revenue. But a recurring revenue model only makes sense to customers if the software is something they are going to use more than once over time. If they are buying software to solve a one-time problem, and then they don't need it any more, then a subscription model probably wouldn't make sense to customers, and if the company tried using a subscription model in a case like that, then it probably would fail! So in customer discovery, it is important to test how you are going to charge for your product or service (i.e., what is the revenue stream or revenue model) in addition to how much you intend to charge. Both the way you charge and the amount you charge has to make sense to your customers.
amazing
Thanks!
What is the main difference between :
How will you charge and How will you price?
How you charge would be the different approaches to getting revenue - like sell an asset (e.g., a retail sale) or charge a rental fee, or charge a commission, or charge a monthly subscription. Pricing gets into the question of once you decide how to charge, exactly how much will you charge? What is the purchase price? Or the rental fee? Or the commission fee? Or the monthly subscription amount? You do need to test customer acceptance of HOW you want to charge (i.e., if you want to charge a subscription instead of a 1-time fee, does that make sense to your customer as a way they should pay?) and you also need to test HOW MUCH you are charging (is your asset sale price too high or low? Or is your subscription fee too high or low?).
🙏
Thanks Ace
Subtitle Indonesia
I see that this video got quite a few views from Universitas PGRI Adi Buana. If you happen to be there, please pass along my thanks to whoever published the link! (And I wish I did have an Indonesian translation...)