1. The document discusses innovative approaches to revenue streams, including introducing new revenue models like subscriptions, freemium plans, and payment per usage.
2. Case studies of companies like Ryanair, Legimi, Dollar Shave Club, and Canva are provided as examples of businesses that have successfully implemented creative revenue streams.
3. The author promotes their online course for more business hacks and tactics related to revenue generation.
2. 2
Successful companies after achieving the product-market fit manage
to start growing almost exponentially
▪ Well executed business
hacks, tricks and tactics
3. 3
One of such business hack is innovative
approach to revenue streams
4. 4
Revenue
streams
Change the way
you claim the
value
Introduce new
revenue streams
When it comes to revenue streams you can do 2 things. And I
will show you both of them
5. 5
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What I will show you in this presentation is a part of extensive on-line
course where you can find also other useful business hacks
Business hacks, tactics and tricks -
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7. 7
There are many potential ways in which you can claim your
money
1-off / lump sum
payment
Instalments
Subscription
Payment / fee per
usage
Payment / fee per
result
Payment / fee per
effort
Free
Freemium
Free Trial
Penalty
Renting
9. 9
The best way to understand things is to start with an
interesting example. Imagine that you want to drink milk. Let’s
see how the farmer can get the money back
10. 10
Let’s have a look how the customer would have to pay for the
milk in the case of different revenue streams models
1-off / lump sum
payment
Instalments
Subscription
Payment / fee per
usage
Payment / fee per
result
▪ Customer pays up-front for all the milk he will drink over the course of his life
▪ Alternatively he buys the cow and can milk the cow as long as the death does
not tell them and the cow apart
▪ You can drink milk as much as you want until the cow dies.
▪ Every moth you pay installment which is a fraction of the cow’s value.
▪ After you pay off the whole value (last instalment) you drink for free
▪ You pay every month a set fee.
▪ Within this fee you can drink as much as you want milk
▪ You can get out of the agreement anytime you want
▪ You pay for the glass of milk you have drunk. You can go to the farmer anytime
you want and rink milk.
▪ If you don’t drink you don’t have to pay
▪ You pay for the glass of milk only if your thirst was quenched
▪ If this did not happen you do not pay for this glass of milk
11. 11
Let’s have a look how the customer would have to pay for the
milk in the case of different revenue streams models
▪ You have an agreement with the farmer that he gives you max 2 glass as he
believes that this should quench you thirst. Usually, it is the case
▪ You pay him fixed amount for that
▪ You drink for free as much as you want. You can even bath in the milk
▪ The farmer is secretly making photos of you drinking milk and using it to
promote his YouTube, Facebook and Instagram account
▪ You can have for free 1/3 of the glass of milk
▪ Everything above that you have to pay
▪ For 1 week you can drink the milk for free but afterwards you have to start
paying
▪ If you don’t drink at least 7 glasses a milk a week you will have to pay a penalty
Payment / fee per
effort
Free
Freemium
Free Trial
Penalty
13. 13
Let’s have a look under what conditions and in what industries
you should use the specific revenue stream model
1-off / lump sum
payment
▪ The most often used model, especially when the price
is low, customer like to change the supplier a lot
▪ This is similar to one-night stand so strength of the
brand is crucial
▪ If you go have a strong brand that matters a lot for your
customer this model is for you
▪ Mainly used in FMCG, some SMCG, small services
When to use Examples
Instalments
▪ This model is often used with expensive items
▪ Going from lump sump to installments usually
drastically change the customer base size
▪ Mentally much easier to swallow than 1-off payments
▪ Great model for SMCG: TV sets, computers, furniture,
houses
Subscription
▪ Holly Grail of startups
▪ It is often used for services that you will repetitively use
over long period of time: mobile phone, health
insurance, SaaS, Video on-demand
▪ Gives you huge predictability of revenues and you
concentrate on value and content and less on
marketing
14. 14
Let’s have a look under what conditions and in what industries
you should use the specific revenue stream model
Payment / fee per
usage
▪ This model is used when you are not able to predict the
usage
▪ You set the price per unit of usage (i.e. time, natural
unit, number of uses etc.) in a contract and then the
payment is based on usage
▪ Widely used i.e. for electricity, water etc.
When to use Examples
Payment / fee per
result
▪ Here as a customer you want to buy the specific result.
You are not interested in the effort
▪ Widely used in B2B especially in the services
▪ In advertisement the result can be view (CPM), clicks
(CPC), lead (CPL), sale (CPS)
Free
▪ Very often used in 2-sided markets and UGC when 1-
side has a free access and the other one covers all costs
▪ Usually requires great number of users
▪ Still you collect money somehow to support you: fees
for advertisement, fees for access, donations etc.
15. 15
Let’s have a look under what conditions and in what industries
you should use the specific revenue stream model
Freemium
▪ This model goes usually hand in hand payment per
usage or subscription
▪ Can be treated as a selling tactic
▪ Often used for digital goods especially software (SaaS)
▪ Very popular with the mobile apps especially games
where you create virtual economy
When to use Examples
Free trial
▪ This model goes usually hand in hand with payment
per usage or subscription
▪ Can be treated as a selling tactic
▪ Often used for digital goods especially for B2C market
i.e. video on demand
Penalty
▪ Penalty are used heavily as a part of other contracts
▪ Can be used also in cases when you want to motivate
people to obey certain rules based on behavior
contracts
▪ Heavily used by the government, education and in
many apps
18. 18
Raynair is an example of very creative company when it
comes to revenue side
Dynamic pricing and no so low prices
Unbundling
Charge for everything
Alternative revenue stream
19. 19
Ryanair has multitude of revenue streams. Surprising the most money
comes from selling the planes
Unbundled services i.e. fee
for additional luggage, food
bought at the airplane
Additional products and
services connected with the
travelling (hotels, renting a
car)
Marketing fees from local
airports
Ads in the planes /
webpage
Money made on selling the
planes
21. 21
Legimi is similar to Kindle. It has managed to capture more of e-
book market by innovative approach to revenue especially by
selling you subscription plans. Below example of 4 plans
They keep traditional sales per
piece
Subscription models with limits
to consumption
Free trial
E-book reader – like Kindle
Source: Legimi
23. 23
DollarShaveClub disrupted the whole industry by introducing
subscription instead of irregular purchases
From lump sump to subscription
From retail chain sales to direct-
to-consumer distribution
3 subscription plans
Free handle (no entry barriers)
You can manage the plan
(frequency, when to receive}
Source: DollarShaveClub.com
25. 25
Canva contrary to majority SaaS in this space is shying away from subscription
and you can buy specific elements. So they went from subscription model to
pay per usage (low fee – 1 USD for basic usage rights)
Freemium
Payment / fee per usage
Fixed fee per element
SaaS
Source: Canva.com
27. 27
Sandwich Video has been making video ads for startups and
corporations. With startup they have been very innovative in charging
them
They main fee is in equity or
revenue sharing
Corporations are charged in
traditional model
They take small fee per video
from startups
Source: Sandwich Video
They create viral content that
boosts brands (startup & their)
28. 28
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