Frialma F.
Santos
TOPIC 3
REPORTERS
Abigail
Bumagat
1
RELATED TOPICS
Value Chain
E-Commerce
Revenue Streams
TRANSFORM raw inputs
into final products and
services
ONLINE Business
How do you make
money?
SET of planned activities
designed to result in a
profit in a marketplace
Strategy used to
generate CASH
Business Models
Revenue Models
2
Topics
1
Basic/Generic Types of Business Models
2
Online Business Models
3
E-Commerce Models
4
Other Nontraditional Business Models
5
Various Revenue Models and
Monetization Strategies
3
Learning Outcomes
Review of the concept of value chain
Discuss business and
revenue models
Contrast non-traditional
business models
Be able to apply the Business Model
Canvas in the final project – Digital
Marketing Plan
4
Revenue
Model
Frialma F. Santos
Business Revenue Model
Profit
Expenses
Profit is a financial benefit that is
realized when the amount of revenue
gained from a business activity exceeds
the expense.
Expenses are costs incurred in the
ordinary course of business. They can
apply to large corporations
65%
PROFIT = REVENUE - EXPENSES
35%
Business
01
Starts with an idea of how to generate
value for a customer
02
Total money earned ---REVENUE
03
Depending on the business model complexity…
REVENUE will cover manufacturing, distribution,
marketing, and other costs
04
Ways to GENERATE revenue
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HOW TO CHOOSE A REVENUE MODEL FOR A SOFTWARE PRODUCT
What is a revenue model?
plan for earning revenue from a business or
01 Aproject.
It explains different mechanisms of
revenue generation and its sources.
02 A plan for making money in an online
business is also called eCommerce
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COMPARISON
Business
model
A broad term outlining
everything concerning
the main aspects of
the business.
Revenue
model
Revenue
stream
Part of the business model A single source
used to describe how the
of revenue that
company gets gross
a business has.
sales.
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Revenue Model
Who is your Primary Customer
& how do you make money
01
What is the Pricing /Model
02
Revenue & # of Customers to date
03
Show basic math on Revenues
& Conversion Rates
.
04
Life-time value of an average
Customer
05
(How many months, how many dollars?)
12
Revenue Model
We have considered 6 most
important and commonly
considered factors which are
expected by the investors to
be a part of their revenue
model
Pricing - whether you will be
charging flat fee or %?
Recurring Revenue Frequency Once every six months / Once a year
Estimated Yearly Revenue - 100
clients x A units x B Fee = $ C Revenue
Expected conversion rate to get a
paid client- 10% of total customers
Expected ARPU- $ 100
Life-time value of a
customer- $5000
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Revenue Streams
Partner Commission
Supplier Commission
Partner with other players in value chain to
increase business
Revenue streams have been
classified in to 2 parts:
present sources and future
sources and these can be
altered as per your revenue
model
Selling in-house products
Selling products at profitable rates
Anybody can open an A/c start selling their
product
Revenue
Streams
Indirect sources such as
advertising, affiliates etc.
Selling products at profitable rates
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Revenue Streams
Arbitrage
Advertising
Interest
Sales Commission
.
Markup
Sponsored Content
Affiliate
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Revenue Generation Methods
3rd party
Ad service
Premium Advertisement
Services for Restaurants
Commission on orders
from restaurants
Delivery
Services
7
Expense Model
Investors would like to
understand how your
company would manage the
funding and understand the
key expenses that you will be
making
Name top 3 expenses like
Employee Expense, IT expenses
& License purchase expenses
Key Expenses needed to generate
revenue?
1 month
How long is sales
cycle to get a client?
$ 50
$ 30
Average cost to
acquire a customer
Cost to maintain a
customer and build
a recurring sales?
Name of company &
purpose it serves
Any unique strategic alliances?
Now: $5000 |
After: $50,000
Monthly burn rate,
now vs. after funding?
1 Year
How long will new
funding last?
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Revenue Model for Media Industry
Advertising
Leads
Classifieds
Content
Affiliate
Distribution
Merchandising
Community
Events
Platform
Brand
Partnership
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Charts &
Graphs
20
Clustered Column - Line
600%
Product 01
500%
This slide is 100% editable. Adapt it to your
needs and capture your audience's attention.
400%
Product 02
300%
This slide is 100% editable. Adapt it to your
needs and capture your audience's attention.
200%
Product 03
100%
This slide is 100% editable. Adapt it to your
needs and capture your audience's attention.
0%
FY 01
FY 02
FY 03
FY 04
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
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70
BUBBLE
CHART
60
Product 01
40
This slide is 100% editable. Adapt it to your needs
and capture your audience's attention.
50
30
20
Product 02
This slide is 100% editable. Adapt it to your needs
and capture your audience's attention.
10
0
0
10
20
30
40
50
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
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Area Chart
100%
Product 01
Product 02
100
Sales In Percentage(%)
90
80
70
60
50
40
30
20
10
0
FY '12
FY '13
FY '14
FY '15
FY '16
FY '17
FY '18
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
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Line Chart
Product 01
Product 02
92%
100
80%
Profit (In Thousands)
90
80
70
60
50
40
30
20
10
0
Jan
Feb
Mar
Apr
May
Jun
July
Aug
Sep
Oct
Nov
Dec
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
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Quotes
An investment in
knowledge pays the
best interest.
..Benjamin Franklin
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THANK YOU
Address:
Contact Numbers:
Email Address:
AHSCI Maharlika Hi-way
P5 Mabini Santiago City
Isabela Philippines 3311
0942 052 8518
operationahsci@adventisthealth-stg.com
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