Start with the End

Many business and entities automatically assume certain outcomes and modes of operations for their given business model because of what is considered the norm. However, buy stepping back and evaluating Revenue Model options from the beginning and working backwards leads to innovation and opportunity, many times creating Blue Ocean opportunities by themselves. Professor Andy Hargadon at UC-Davis has identified 8: Unit sales, Advertising fees, Franchise fees, Utility fees, Subscription fees, Transaction fees, Professional fees and License fees.

Many times the Revenue model decision will lead to innovations in distribution, audience building, packaging, etc. that create opportunities and  differentiation that contribute to the strategy canvas and ultimately success. Determining  the revenue model creates a clearer out point to begin building the plan and monitoring the progress as you move forward. It also makes it clearer as to what analytics need to be monitored along the way to insure  conversions, economic (sales) and non-economic (non-sales but ultimately lead to sales) are occurring and building. Make sure you have clearly defined your Revenue Model and aligned all of your efforts to maximize it. Want to know more, Read…

 

Be Sociable, Share!

Share Your Thoughts

Tell me what you're thinking...

 characters available

*