Any book with focus on revenue models?

[Someone]

Hi there,

I would like to read a book that analyzes all the revenue models that exist today (Freemium, one time pay, etc...) I'm talking about online services.

Any good recommendations?

Thanks!

 

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[Startup Steve]

There are 5 fundamental rev models

1. Advertising
2. Agency base
3. License/subscription
4. Lifestyle
5. Data base (not database)

Which of these are you interested in ?

 

[Someone]

Hi Steve, thanks for answering.

It's the first time I hear about the "Lifestyle" one, I don't know what is it exactly.
But in general, I want to get to know all of them (advantages, disadvantages, etc).

 

[Xeon]

There are 5 fundamental rev models

1. Advertising
2. Agency base
3. License/subscription
4. Lifestyle
5. Data base (not database)

Which of these are you interested in ?

I would like to know what's the Lifestyle revenue model too.

 

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[Startup Steve]

I would like to know what's the Lifestyle revenue model too.

It's the first time I hear about the "Lifestyle" one, I don't know what is it exactly.
But in general, I want to get to know all of them (advantages, disadvantages, etc).

Lifestyle is the method for a big brand (think sports). Its popular among artists, publicists, politicians, and celebrities.

Branded Merchandise/Lifestyle Merchandise:

Start with free access to the content, and while the user is engaging with the content, your market product (think white label merchandise). Example: Look at Evernote’s market. They terminated it thought it was responsible for 30% revenue. The reason for the shutdown was to allow the team to focus on their core product (which became ubiquitous).

You can find celebrities adopting this model, like Gary Vaynerchuk.

Direct to Consumer:

This a monetization method and main consumer model of the last decade. Think of Dollar Shave Club and when you first saw that commercial. D2C cuts intermediary distribution costs and provides premium products at lower costs.

Using this model, you will monetize on the distribution costs that you don’t pay while delivering your product (CPGs) directly to your client.

 

[Owner2Millions]

I personally don’t think licensing(if your the licensor) is the same as a subscription base model(I. E. SAAS, pharmaceuticals, an amazon order every month) Licensing your product, your being paid royalties based on sales of the licensee. Or however the licensing agreement is done, because you could get a guarantee percentage upfront. i. e. ....Nike making NBA and NFL jerseys. They are similar but not the same thing. Although I can see how one will get confused.....


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[Startup Steve]

I personally don’t think licensing(if your the licensor) is the same as a subscription base model(I. E. SAAS, pharmaceuticals, an amazon order every month) Licensing your product, your being paid royalties based on sales of the licensee. Or however the licensing agreement is done, because you could get a guarantee percentage upfront. i. e. ....Nike making NBA and NFL jerseys. They are similar but not the same thing. Although I can see how one will get confused.....

I group them together because they are both parts of my up-sell flow.

• Freemium
• Free DIY or Paid DFY
• Pay What You Want (a tip jar)
• Virtual Goods Merchandise
• Pay Per User
• Pay Per Device
• Pay Per License

 

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