business model patterns at lean startup machine

YOUR BUSINESS MODEL IS THE PRODUCT

EVENTUALLY YOU WILL WANT TO EXCHANGE CURRENCY INTO CASH

SO WHO IS GOING TO PAY YOU?

BUSINESS MODEL PATTERNS

LOW MARGINHIGH VOLUME

HIGH MARGINLOW VOLUME

LOW MARGIN HIGH VOLUME

NORMALLY B2CLOW TRANSACTION COST

LARGE CUSTOMER SEGMENT

LOW MARGIN HIGH VOLUME

GROWTH HYPOTHESISSIZE OF MARKET

KEYVALIDATIONS

HIGH MARGIN LOW VOLUME

NORMALLY B2BHIGH TRANSACTION COST

SMALL CUSTOMER SEGMENT

HIGH MARGIN LOW VOLUME

PROBLEM HYPOTHESISPRICE SENSITIVITY

KEYVALIDATIONS

SUBSCRIPTION

AUDIENCEAGGREGATION

CAPITAL

SERVICE SHAREDRESOURCE

RESALE

LOAN

AGENCY

INSURANCE OPTION

PRODUCT

LEASE

MANUFACTURE TANGIBLE ITEMS WHICH YOU SELL FOR MORE THAN THEY COST

PRODUCT

CARSFMCGiPODS

PROVIDE HELP TO OTHERS IN EXCHANGE FOR A FEE

SERVICE

HAIRDRESSERSAIRLINES

CONSULTANTS

CHARGE FOR ACCESS TO AN ASSET WHICH CAN BE SHARED AMONGST MANY

PEOPLE

SHARED RESOURCE

GYMSTHEME PARKSiPHONE APPS

PROVIDE VALUE ON AN ONGOING BASIS IN RETURN FOR A RECURRING FEE

SUBSCRIPTION

SATELLITE TVSOFTWARE AS A SERVICE

SUBSCRIPTIONKEYVALIDATIONS

COST PER ACQUISITION < LIFETIME CUSTOMER VALUE

PROBLEM/SOLUTION HYPOTHESISWILL THEY PAY TO SOLVE THIS?

WILL THEY PAY YOU?

SUBSCRIPTIONKEYVALIDATIONS

CPA FACTORS

MARKETING BASED ACQUISITION - PAIDREFERRAL - FREE

SUBSCRIPTIONKEYVALIDATIONS

LTV FACTORS

SUBSCRIPTION PLAN COSTATTRITION

BUY LOW SELL HIGH

RESALE

E-RETAIL

CHANNEL HYPOTHESIS

RESALEKEYVALIDATIONS

BROKER OR MARKETPLACE. MARKETING AND SELLING AN ASSET YOU DON’T OWN

AGENCY

E-BAYGROUPON

VALIDATING BUYER AND SELLER HYPOTHESIS

PRICE SENSITIVITY

AGENCYKEYVALIDATIONS

COLLECTING ATTENTION THEN SELLING ACCESS TO THAT AUDIENCE

AUDIENCEAGGREGATION

BROADCAST TVCONTENT SITES

FACEBOOK

GROWTH HYPOTHESIS VALIDATING WITH MARKETERS

AUDIENCEAGGREGATION

KEYVALIDATIONS

FREE

THERE IS NO SUCH THING AS A FREE PRODUCT

NON-PAYING CUSTOMER SEGMENTIS FUNDED BY A DIFFERENT PAYING

CUSTOMER SEGMENT

FREEMIUM GENERALLY MEANS THE GIVING AWAY A BASIC PRODUCT AS

AN ACQUISITION STRATEGY

AND SELLING THE ADVANCED PRODUCT

TRIAL PERIODS ARE NOT FREEMIUM

THE MARGINAL COST OF SERVICING FREE CUSTOMERS IS CLOSE TO ZERO

BUT PROVIDES OTHER VALUE(MARKETING, DATA)

KEYVALIDATIONS

CONVERSION HYPOTHESIS

KEYVALIDATIONS