PowerPoint Presentation

Establishing a Revenue Modelfor your business

Arifur RahmanDirector, Business & Financial Strategy @ MCC Ltd.

Types of Revenue ModelsProduction ModelSubscription ModelFree-for-Service ModelMarkup ModelCommission ModelLicensing ModelAdvertising Modelhttp://en.wikipedia.org/wiki/Revenue_modelWithout a well defined revenue model, thus a clear plan of how to generate revenues, new businesses will quite certainly struggle to emerge as they will face costs which they will not be able to sustain. By having a clear revenue model, a business can focus on a target audience, found development plans for a product or service, establish marketing plans, begin a line of credit and raise capital.

Production ModelThe business that creates the product or service sells it to customers who value and thus pay for it.

Subscription ModelThe business provides a product or service to a customer who in return pay a pre-determined fee at contracted periods of time to the business.

Fee-for-Service ModelThe business only charges customers for the amount of service or product they use.

Markup ModelThe business buys a product or service and increases its price before reselling it to customers.

Commission ModelSimilar to the markup model as it is used when a business charges a fee for a transaction that it mediates between two parties.

Licensing ModelThe business that owns a particular content retains copyright while selling licenses to third parties.

Advertising ModelBusinesses which use their platforms where content is provided to the customer as an advertising space.

Which one is your Revenue Model & Why?Production ModelSubscription ModelFree-for-Service ModelMarkup ModelCommission ModelLicensing ModelAdvertising Model

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