Revenue & Pricing Models
Our e@ubc Accelerator programs are always an interesting forum to watch nascent ventures take form. UBC teams apply for entrance and only select groups move forward.
http://entrepreneurship.ubc.ca/program/accelerator-program/eubc-accelerator-program/
One of the highlights of the program is the team of successful, industry mentors who donate their time to offer teams feedback and one-on-one mentoring. For even the most social of ventures, sooner or later the discussion turns to money. How will you stay afloat? What is the revenue model? How will offerings be priced?
Revenue and pricing is covered well by Steve Blanks in his Lean Launchpad/whiteboard program on Udacity. This program is freely available. One need just sign up:
https://www.udacity.com/course/ep245
Customer Segments
Before you dive into revenue and pricing models, it is important to have a firm grasp on your primary Customer Segments & your product market fit. What problems are you solving for whom with your venture?
i. http://youtu.be/LkxQqK5UX9Q
ii. http://youtu.be/qW8SVBlDXx4
As you venture out into the world to unearth your core customers, what can you learn about their needs? As Blanks notes: mapping out a ‘day in their lives’ can be enormously helpful in helping you to refine your offerings.
Your Revenue Model
A. Watch this series of videos on revenue models and pricing from Blanks’ Udacity series.
B. As you walk through excerpts from the concise video series, think about the pricing and revenue models for your own business. Answer the ** questions that refer to each link…
i. How do you Make Money?
https://www.youtube.com/watch?v=XYuvo4Vr8Tw
** What is the main difference between revenue model and pricing as laid out by Blanks here? See iii – Revenue Streams & Price – for more detail here.
** Reminder: What value are you providing your target customers with your product or service?
ii. Common Mistakes
https://www.youtube.com/watch?v=gsFtYIM81p0
iii. Revenue Streams & Price
https://www.youtube.com/watch?v=3NRvKd5C0iY
** How do customers pay for the most similar products or services to yours today?
** How much do they currently pay?
iv. Direct & Ancillary Models
https://www.youtube.com/watch?v=o8BmSq7YyTU
** Which of these models could you use you in your venture?
v. Pricing
https://www.youtube.com/watch?v=aNcoLu-nQuY
** What is the key difference between Fixed and Dynamic Pricing?
** What is the right pricing model for your venture? Fixed, Dynamic or a blend? Use specifics to explain why.
vi. Common Startup Mistakes
https://www.youtube.com/watch?v=GmhagXpucso
You can watch the rest of this excellent series on revenue through Udacity…
