LLP@Tecnico Class 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

Important

Revenue Model ≠ Pricing

Tactic Strategy

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 Errors • Use “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 Matter • Value 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 Alliances Apple + Record Labels

Joint Business Development Intel Inside

Coopetition wi-fi 802.11b/g/n

Key Suppliers Outsource suppliers: Apple + Foxconn Direct 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