Business Models & Revenue Models
We recently ran a mentoring workshop with a group of early-stage founders, in conjunction with The Founders Institute, on Business models and Revenue Models, and below we provide a downloadable deck that explains some key concepts on this, which is important to understand.
Business Model
The way an organization deploys its capital and organises it resources to create, deliver and capture value for its customers
We recommend this article from Harvard Business Review for further reading on this topic: https://hbr.org/2014/11/what-airbnb-uber-and-alibaba-have-in-common
HBR describes and analyses four distinct business models:
Asset Builders
Service Providers
IP/Technology Creators, and
Network Orchestrators.
Revenue Model
The mechanism an organisation uses to capture the value delivered to customers
We propose there are five revenue models commonly used in the technology sector, each based on a distinct customer value perspective of “what am I paying you for?”
The Software model
The Advertising model
The Content model
The Commerce model, and
The Transaction model.