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← 09-19 Key_Revenue_Model_Questions

09-19 Key_Revenue_Model_Questions

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Showing Revision 2 created 09/30/2015 by Udacity Robot.

  1. Some of the revenue model questions:

  2. What is it my customers are paying for?
  3. What's the value? What is it when they look at my company and my products?
  4. By the way, what capacity do they have to pay? They might love it.
  5. In fact, everybody who looks at a Ferrari or a Tesla model S
  6. might say, yes, I'd love to pay for that, but—you know what?—my wife won't let me
  7. or I just don't have the money.
  8. That is, is the total available market of potential users your needs for revenue?
  9. You might have built a product so expensive
  10. that the customer segment you've targeted just can't afford it.
  11. Then how will you package your product?
  12. By package I don't mean what kind of pretty box is it in.
  13. Another mistake startups make, particularly engineering-driven startups,
  14. is putting every possible feature into the first product,
  15. not thinking that perhaps—well, wait a minute.
  16. Maybe we could decompose the product—that is, take it apart—
  17. and offer these as add-ons or as ancillary products
  18. or separate products, etc.
  19. How you package your products should not just be an engineering functionality decision.
  20. It should be a value-based decision.
  21. As we said, the same with pricing.
  22. How will you price? What kind of tactics will you use?