Revenue Model Matching

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Overview

Revenue Modeling

You just hypothesized a solution to solve your customers$$ problems. Now it$$s time to hypothesize a sustainable way to fund the development and delivery of that solution. In other words, it$$s time to hypothesize your revenue model.

A revenue model is simply the way an organization makes money. Your revenue model, combined with your pricing strategy, will make up the Revenue Streams section of your Business Model Canvas.

Without a revenue model, your business can generate costs that can make it unsustainable. This class will help you answer some important questions like:

How can or cannot my business generate revenue?

How can I determine crucial factors that can help my business thrive and grow?

Here below are some of the main definitions that can help you understand what is$/$isn$$t a revenue model:

A revenue stream is a company$$s single source of revenue. A company can have zero or many revenue streams, depending on its size.

A revenue model is the strategy of managing a company$$s revenue streams and the resources required for each revenue stream.

A business model is the structure comprised of all aspects of a company, including revenue model and revenue streams, and describes how they all work together.

Step $1$ The Matching Game

This first step is to match each one of the following examples of businesses with one Revenue Model card.

Don$$t worry about getting it right the first time. This is a learning experience and you won$$t be graded on how well you did the first time.

You can always change your mind. Do your best and have fun!

Facebook

Facebook logo

Facebook it$$s a social media network that lets its $2+$ billion users worldwide connect with their friends, family and others. Facebook offers its services mostly for free to its users and then makes money predominantly by showing ads from advertisers within its platform.

That means that people who use Facebook services $($users$)$ are not the ones paying Facebook for it$.$ Real customers are primarily small businesses advertising on some of Facebook$$s family of apps.

According to this description, what is the Facebook$$s revenue model? Click and select one of the following cards.

payments

One$-$Time Payment

Selling a good or service via a single transaction.

newspaper

Advertising

Selling the right $($Eg: Ad space$)$ to promote another organization$$s products or services to your customers.

loop

Subscription

Selling non$-$exclusive access to a good or service for a given period of time typically repeating until canceled.

card$\_$giftcard

Donation

Money given voluntarily by those wishing to support the mission of your organization as donations or pay$-$what$-$you$-$want.

speed

Usage

Selling access to a good or service based on the amount of that good$/$service used.

incomplete$\_$circle

Commission

Revenue generated in exchange for facilitating a transaction between two parties.

timelapse

Rent

Selling exclusive access to a good or service for a given period of time.

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Data Reselling

Selling information about your customers.

label$\_$off

White Label

Selling permission for someone else to sell a product you$$ve created, with their name$/$brand on it$.$

Printful

Printful logo

Printful is an on$-$demand printing and fulfillment company that helps to turn ideas into brands and products. Printful is one of the most popular dropship service providers to sell accessories, homeware, and apparel.

For instance, Printful can create a t$-$shirt with your logo and branding on the label so that customers think you manufactured the t$-$shirt yourself.

According to this description, what is the Printful$$s revenue model? Click and select one of the following cards.

payments

One$-$Time Payment

Selling a good or service via a single transaction.

newspaper

Advertising

Selling the right $($Eg: Ad space$)$ to promote another organization$$s products or services to your customers.

loop

Subscription

Selling non$-$exclusive access to a good or service for a given period of time typically repeating until canceled.

card$\_$giftcard

Donation

Money given voluntarily by those wishing to support the mission of your organization as donations or pay$-$what$-$you$-$want.

speed

Usage

Selling access to a good or service based on the amount of that good$/$service used.

incomplete$\_$circle

Commission

Revenue generated in exchange for facilitating a transaction between two parties.

timelapse

Rent

Selling exclusive access to a good or service for a given period of time.

insert$\_$chart

Data Reselling

Selling information about your customers.

label$\_$off

White Label

Selling permission for someone else to sell a product you$$ve created, with their name$/$brand on it$.$

Netflix

Netflix logo

Netflix is one of the world$$s most successful streaming services bringing television, documentaries, and movies to millions of people around the world. Netflix acquires, licenses, and produces content including original content.

Its $200+$ millio