"how to make money with my app" + other business model ideas #eia2017
TRANSCRIPT
“How to make moneywith my app?”
And other Business Model Ideas
Nick De Mey - cofounder Board of Innovation
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boardofinnovation.com
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Business Model Innovation
?
Business Model in a nutshell
An organization’s logic of creating, delivering and capturing value.
just to make sure we’re all on the same page…
Business Model in a nutshell
An organization’s logic of creating, delivering and capturing value.
Business Model in a nutshell
An organization’s logic of creating, delivering and capturing value.
Business Model in a nutshell
An organization’s logic of creating, delivering and capturing value.
Business Model in a nutshell
An organization’s logic of creating, delivering and capturing value.
Business Model in a nutshell
An organization’s logic of creating, delivering and capturing value.
So many options to make money, experiment with
pricing & revenue models,…
What is a clever way to make money?
E.g. Make money with silent tracks?
Understand the patterns!
Useful skills.
Learn to see:
What could this be?
Makes sense?
Makes sense?
Velocipedia
Italian designer Gianluca Gimini's
How to innovate your
business model?
Work with a visual language
Bird
10%remembers 65%
remembers
Step 1: Define your current business model
You are in the center!
Your own venture
Business Model transactions
Focus to make this flow as smooth as possible. #frictionless
Can be more complex.
Many different players, a lot of monetary transactions.
Business Model Blocks
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
Seats2meet - Co-working with Dynamic prices
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
Indiegogo & KickStarter - Crowdfunding
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
New products
Your turn!
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
Cardrops - Delivery service
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
Runkeeper tracks your runs
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
Running becomes experience
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
Sell right to exploit roofs for solar energy
Your turn!
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
people.io -> Your data becomes ‘money’
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
Carrot > To-do list with a personality
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
Carrot > To-do list with a personality
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
Virtual currencies - Bitcoin
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
Moskou: Pay with Exercises
Product
5
Money
5
Less Money
Experience
Right
Data
1Reputation
Credits
Service
Exposure
Pay with social reach. paywithatweet.com
Your turn!
23andme
23andMe
Kaggle
Example: OpenDoor
Example: OpenDoor
Example: OpenDoor
Example: OpenDoor
Example: OpenDoor
The key questions you need to ask:
What is the best new business model to try?
Business Model Innovation where to find new growth for your business.
Explore extra revenue sources!
Different categories:
+ specific examples
What to pick?
Free!for the user.
1.
Paid!the user = client.
2.
Free?
Free = FreeThere are so many variations on ‘free’
What to pick?
Free!for the user.
1.
- Early exit -
Free
(Hidden) other agenda: - Aim for an early exit. - Acqui-hire - Prestige - …
Rule of thumb: There is no free lunch.
What to pick?
Free!for the user.
1.
- Early exit -
- Pay-what-you-want -
Free?
Customer can pick his own price.
Pay-what-you-want. (including free)
Case: Humble Bundle
Pay-what-you-want: Restaurants, Museums,…
Emotional connection
Social/group pressure
…
What to pick?
Free!for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -
Free?
Main difference: People often get the product for free, but are
free to do an extra transaction.
Tip jar - Donation.
Free, for some.
Different segments of users.
What to pick?
Free!for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -
- Barter -
Swap goods, give something else in return.
Many Facebook groups & events: baby clothes, travel,…
More controversial
What to pick?
Free!for the user.
1.
Paid!the user = client.
2.
Reason why people upgrade!
What to pick?
Paid!the user = client.
2.
- Vanity - reputation -
Some people only want “the best”
Ultimate luxury. €21.000 Smartphone (Vertu)
Vanity, reputation…
Vanity is so powerful!
Looks & Reputation in games.
To fit in Exclusivity Show Commitment ...
Important learning: You need other people to show off!
First class sells - because of second class.
Pay to get noticed. (above the crowd…)
Would you pay to get seen by your friends on Facebook?
Facebook 2012
What to pick?
Paid!the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
Another tactic: Lure people in with free + lock-in.
Just give it a try!
Lock-in (switching costs, hassle,..)
Pay-as-you-go model.
Switching cost?
pay-per-use.
Blendle - itunes for journalism (buy per article)
What to pick?
Paid!the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
Privacy features are very powerfull!
Hide your profile. Incognity mode.
What to pick?
Paid!the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
Mystery crates (& surprise upgrades)
similar to Lottery system = very lucrative!
Real life mystery crate
Blind dates, anyone?
Crazy Blind Date by OKcupid. (up to $3/date)
What to pick?
Paid!the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Convenience/ Shortcuts -
Use Sold. The convenient way to sell goods online.
The Gone App: 1 photo to sell Homesnap: 1 photo to get info
The (ex-) power of Zynga-like games.
Grind - Spam - Pay
What to pick?
Paid!the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Convenience/ Shortcuts -
- Helping peers/ gifts -
This one is on me…
Yes, Awesome. I’m a PLUS member.
Virtual gifts to friends.
More triggers & inspiration:
More triggers & inspiration:
More triggers & inspiration:
More triggers & inspiration:
.
Crucial question!
Learn from gaming.
Question: Do you allow people to spend (all their) money?
Next Chapter.
What to pick?
Free!for the user.
1.
Paid! the user = client.
2.
Third party pays the bills.
3.
What to pick?
Third party pays the bills.
3.
- Advertising -
What to pick?
Third party pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
What to pick?
Third party pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
What to pick?
Third party pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
What to pick?
Third party pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -
What to pick?
Third party pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -
- Get-one-give-one -
another client pays for your product. (could be anymous)
Suspended coffee
One Laptop Per Child
What to pick?
Free!for the user.
1.
Paid! the user = client.
2.
Third party pays the bills.
3.
Broker/Matchmaking
4.
Can be a mix of all three.
Broker/Matchmaking
4.
- One-side pays -
One side pays.
Get paid to date?
Very controversial of course.
Get paid to date.
Other platforms experiment with other rewards than money.
Broker/matchmaking
Broker/Matchmaking
4.
- One-side pays -
- Both sides pay -
Matchmaking between 2 normal users.
only 1 of the 2 parties pays.
Auction platforms.
Broker/Matchmaking
Broker/Matchmaking
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -
Crowdfunding (many variations)
For pre-sales? Investment?
Donation?
Crowdfunding
The product itself is often not the primary driver: “Be part of something bigger, a revolution in …”
Broker/Matchmaking/
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -
Penny Auctions
What to pick?
Free!for the user.
1.
Paid! the user = client.
2.
Third party pays the bills.
3.
Broker/Matchmaking
4.
Mixed modelSubsidised
5.
Mixed modelSubsidised
5.
- Shop (on the side) -
Mixed modelSubsidised
5.
- Shop (on the side) -
- Razor-blade (add-ons) -
Mixed modelSubsidised
5.
- Shop (on the side) -
- Razor-blade (add-ons) -
- Credits/points -
No easy fix. But experiment
& learn!
Thanks!