1 / 16

Business models

Emer Dooley University of Washington. Business models. What is a Business Model. 2 elements What does a business do? How does it make money?. What rights are being sold?. Ownership of an asset Those that significantly transform the asset: Creator Those that don’t: Distributor

gerda
Download Presentation

Business models

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Emer Dooley University of Washington Business models

  2. What is a Business Model • 2 elements • What does a business do? • How does it make money?

  3. What rights are being sold? • Ownership of an asset • Those that significantly transform the asset: Creator • Those that don’t: Distributor • Right to use an asset: Landlord • Right to be matched with the buyers and sellers of something: Broker • Assets can be Physical, Financial, Intangible or Human

  4. Start with… • Revenue • Expenses • How much capital you’ll need • What will the cash flow look like? • Do some sensitivity analysis

  5. Revenue Sources and Streams • Single • Multiple • Interdependent • Loss Leader • Subscription • Unit-Based • Ad-based • Licensing • Transaction Fee

  6. London-Barcelona $70

  7. Other Business Models:

  8. Free DVRs Total DVR Subscription Revenue $500 $450 $400 $350 $300 $250 $200 $150 $100 $ 50 0 Profit Loss Months $250= Cost of DVR Months 0 6 12 18 24 30 36

  9. Direct Cross-Subsidy Producer Product One (Paid) Product One (Free) Consumer

  10. Cross-Subsidy

  11. The Three-Party Model Producer Ad Space (Paid) Content (Free) Paid Product Consumer Advertiser

  12. Three-party Model

  13. Freemium Producer Basic Product (Free) Premium Product (Paid) Many Consumers Consumer

  14. Cost Drivers and Structures • Fixed • Variable • Semi-Variable • Non-Recurring • Direct Payroll • Inventory • Space • Advertizing

  15. Read Free: The Future of a Radical Price by Chris Anderson

More Related