16 Startup Revenue Models

16 Startup Revenue Models

The great thing about startups is that your idea is unique (hopefully) but how you make money isn’t unique. This presentation includes both Business to Business (B2B) and Business to Consumer (B2C) models. Some models apply to both customer segments, some only apply to one.

Recently, I was interviewed on a podcast on the topic, if you like the audio version.

The deck breaks down the difference between the three parts of a Startup Business Model.

  1. Creating Value – the product or service that you are providing to your customer.
  2. Delivering Value – how you market and sell (distribute) the product or service, this is the revenue model.
  3. Capturing Value – represents the range of the reasonable to exceptional profits associated with your efforts. The more reasonable (lower) the profit the less likely it is to get funded, the more exceptional (higher) the more likely it is to get funded.

The good news is, you just need to pick one or two and try them out. If one doesn’t work for your industry vertical, try another one. Many companies use a combination model – e.g. subscription + services.