Tips for designing the revenue model for your company.

1. =
Business Model Innovation
by @nickdemey / co-founder www.boardofinnovation.com

2. Hi.

4. I’m Nick
from Belgium
intro via 3 books

5. BOOK 1

6. BOOK 2

7. BOOK 3

8. “It’s our goal to make corporates
innovate like startups.”
mixing proven methods from
Design Thinking & Lean Startup

9. Innovation strategy & execution
e.g. design & run an internal accelerator
Talent Development
e.g. Intrapreneurship training
Find
the right
people!

10. strong network & culture of sharing
Mexico
LinkedIn Group:
+20K people
Slideshare Channel
+5 Million views
Sharing of
tools & inspiration
+10000 subscribers
subscribe to
newsletter
FEATURED IN

11. for Fortune500 & global innovation leaders
Heavy industry/manufacturing
Utilities/Chemicals/Pharma
Commodities/Automotive/…
Banking/Finance/Payroll/HR
Telco/Publishing/Travel/
FMCG/…
B2B
B2B2C & B2C
Tokyo

12. How we got started: Business Model Innovation

13. A plan to monetize your startup idea?
https://vimeo.com/79954057

14. Business Model
Innovation
?

15. 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…

16. Business Model in a nutshell
An organization’s logic of creating,
delivering and capturing value.

17. Business Model in a nutshell
An organization’s logic of creating,
delivering and capturing value.

18. Business Model in a nutshell
An organization’s logic of creating,
delivering and capturing value.

19. Business Model in a nutshell
An organization’s logic of creating,
delivering and capturing value.

20. 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,…

21. No magic.
Extra money?

22. Remember this one?

23. Remember this one?
1 million pixels to sell = 1 million dollar #awesome

24. Copy & Remix.
An easy exercise to start.

25. Airbnb

26. Airbnb
of Food.
of Parking.
of Boats.

27. AirBnb of X

28. AirBnB of ….
“Matchmaking people
to make money from assets
they own.”

29. Uber of X.

30. Uber of ….
“on-demand
service via an App”

31. But…

32. Tinder

33. Tinder
of Jobs.
of Fashion.
of Shopping.

34. Tinder of ….
“Swipe based matching”
not a business model pattern,
more about the interface.

35. Understand the patterns!

36. Useful skills.

37. Learn to see:

38. What could this be?

39. Makes sense?

40. Makes sense?

41. Velocipedia
Italian designer Gianluca Gimini's

42. How to
innovate your
business model?

43. Work with a visual language
Bird
10%
remembers
65%
remembers

44. Work with a visual language
www.boardofinnovation.com

45. Step 1: Define your current business model

46. You are in the center!
Your own venture

47. Business Model transactions
Focus to make this flow as smooth as possible. #frictionless

48. Can be more complex.
Many different players, a lot of monetary transactions.

49. Business Model Blocks

50. Seats2meet - Co-working with Dynamic prices
Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure

51. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Indiegogo & KickStarter - Crowdfunding

52. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
New products

53. Your turn!

54. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Cardrops - Delivery service

55. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Runkeeper tracks your runs

56. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
ZombiesRun - Running as a game

57. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Sell right to exploit roofs for solar energy

58. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Runkeeper gives you discounts

59. Your turn!

60. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
MoodPanda - Track your Happiness

61. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Carrot > To-do list with a personality

62. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Carrot > To-do list with a personality

63. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Virtual currencies - Bitcoin

64. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Moskou: Pay with Exercises

65. Product
5
Money
5
Less Money
Experience
Right
Data
1
Reputation
Credits
Service
Exposure
Pay with social reach

66. Your turn!

67. 23andme

68. 23andMe

69. Kaggle

70. The key questions
you need to ask:
What is the best new business model to try?

71. Business Model Innovation
where to find new growth for your business.
Explore extra
revenue sources!

72. Different categories:

73. + specific examples

74. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.

75. Free?
Free = Free
There are so many variations on ‘free’

76. What to pick?
Free!
for the user.
1.
- Early exit -

77. Free
(Hidden) other agenda:
- Aim for an early exit.
- Acqui-hire
- Prestige
- …
Rule of thumb:
There is no free lunch.

78. What to pick?
Free!
for the user.
1.
- Early exit -
- Pay-what-you-want -

79. Free?
Customer can pick
his own price.
Pay-what-you-want. (including free)

80. Case: Humble Bundle

81. Pay-what-you-want: Restaurants, Museums,…
Emotional connection
Social/group pressure
…

82. What to pick?
Free!
for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -

83. Free?
Main difference:
People often get the product for free, but are
free to do an extra transaction.
Tip jar - Donation.

84. Free, for some.
Different segments of
users.

85. What to pick?
Free!
for the user.
1.
- Early exit -
- Pay-what-you-want -
- Tip jar/ donation -
- Barter -

86. Swap goods, give something else in return.
Many Facebook groups & events: baby clothes, travel,…

87. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Reason why people upgrade!

88. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -

89. Some people only want “the best”
Ultimate luxury. €21.000 Smartphone (Vertu)

90. Vanity, reputation…
Vanity is so powerful!

91. Looks & Reputation in games.
To fit in Exclusivity Show Commitment ...

92. Important learning: You need other people to show off!

93. First class sells - because of second class.

94. Pay to get noticed. (above the crowd…)
Would you pay to get seen by your friends on Facebook?
Facebook 2012

95. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -

96. Another tactic: Lure people in with free + lock-in.
Just give it a try!

97. Lock-in (switching costs, hassle,..)

98. Pay-as-you-go model.
Switching cost?

99. pay-per-use.
Blendle - itunes for journalism (buy per article)

100. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -

101. Privacy features are very powerfull!
Hide your profile.
Incognity mode.

102. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -

103. Mystery crates (& surprise upgrades)
similar to Lottery system = very lucrative!

104. Real life mystery crate

105. Blind dates, anyone?
Crazy Blind Date by OKcupid. (up to $3/date)

106. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Convenience/ Shortcuts -

107. Use Sold. The convenient way to sell goods online.
The Gone App: 1 photo to sellHomesnap: 1 photo to get info

108. The (ex-) power of Zynga-like games.
Grind - Spam - Pay

109. What to pick?
Paid!
the user = client.
2.
- Vanity - reputation -
- Loss-aversion -
- Privacy/ Anonymity -
- Mystery/ Surprises -
- Convenience/ Shortcuts -
- Helping peers/ gifts -

110. This one is on me…
Yes, Awesome.
I’m a PLUS member.

111. Virtual gifts to friends.
Line messaging app is one to keep an eye on!

112. Crucial question!

113. Learn from gaming.
Question:
Do you allow people to spend (all their) money?

114. Next Chapter.

115. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.

116. What to pick?
Third party
pays the bills.
3.
- Advertising -

117. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -

118. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -

119. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -

120. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -

121. What to pick?
Third party
pays the bills.
3.
- Advertising -
- Affiliate/ Referral -
- Data Reseller -
- Joint-Venture/partnership -
- White-label/Franchise -
- Get-one-give-one -

122. another client pays for your product. (could be anymous)

123. Suspended coffee

124. One Laptop Per Child

125. 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.

126. Broker/
Matchmaking
4.
- One-side pays -

127. One side pays.

128. Get paid to date?
Very controversial
of course.

129. Get paid to date.
Other platforms experiment with other rewards than money.

130. Broker/matchmaking
Broker/
Matchmaking
4.
- One-side pays -
- Both sides pay -

131. Matchmaking between 2 normal users.
only 1 of the 2 parties pays.

132. Auction platforms.

133. Broker/Matchmaking
Broker/
Matchmaking
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -

134. Crowdfunding (many variations)
For pre-sales?
Investment?
Donation?

135. Crowdfunding
The product itself is often not the primary driver:
“Be part of something bigger, a revolution in …”

136. Broker/
Matchmaking/
4.
- One-side pays -
- Both sides pay -
- Crowdfunding -
- Penny Auctions -

137. Penny Auctions

138. What to pick?
Free!
for the user.
1.
Paid!
the user = client.
2.
Third party
pays the bills.
3.
Broker/
Matchmaking
4.
Mixed model
Subsidised
5.

139. Mixed model
Subsidised
5.
- Shop (on the side) -

140. Mixed model
Subsidised
5.
- Shop (on the side) -
- Razor-blade (add-ons) -

141. Mixed model
Subsidised
5.
- Shop (on the side) -
- Razor-blade (add-ons) -
- Credits/points -

142. No easy fix.
But experiment
& learn!

143. Invent the future!
where to start?

144. Change*

145. Tech change
& Societal change.

146. Understand & Detect Exponantial Growth

147. Example
11am
12pm

148. Example
11am
12pm

149. Example
11am
12pm

150. Example
11am
12pm

151. Example
11am
12pm

152. Example
11am
12pm

153. Example
11am
12pm

154. Example
? am

156. Example
11:59am

157. Example
11:55am
3%

158. Example
11:00am
11:55am

159. Example
11:00am
11:55am
Based on our experience
of the last 55 years,
what will happen
the next 5 years?

160. Impact?

161. Impact of exponential
Tech Change.

162. Example (all driven by technology)
It becomes easier & easier to pay someone
It becomes easier & easier to follow peers
It becomes easier & easier to know what you like
…

163. Focus on Kickstarter
Total funding?

164. Focus on Kickstarter

165. Pebble Time
Total funding?

166. Original Pebble Watch
2012
$10.266.845
Time needed to
get 1M dollar?

167. Original Pebble Watch
2012
$10.266.845
Time needed to
get 1M dollar?
28 Hours

168. Ouya, gaming console
Time needed to
get 1M dollar?
28 Hours
8 Hours

169. Ouya, gaming console
Time needed to
get 1M dollar?
7 Hours
28 Hours
8 Hours

170. Pebble Time
Time needed to
get 1M dollar?
7 Hours
28 Hours
8 Hours
0 H 44 min

171. Oculus Rift
+$2M on Kickstarter

172. Oculus Rift
Oculus Rift acquired by Facebook for 2 Billion Dollar
2 year after launch.
+$2M on Kickstarter

173. Traction? = Acquired as it happens.
Mailbox, acquired by Dropbox for $100M
1 month after launch.

174. Is this where we’re heading at?
1 day startups
get acquired for
$1 Billion
This to illustrate the pace of change
that impacts the context of companies.

175. Thanks!