Revenue models. Which one will you choose for 2021?
What revenue models will you choose in 2021? Will you offer a new service or do you see other opportunities? We have listed all the models!
Revenue models can make or break your business. As a starting entrepreneur it is important to think carefully about how you are going to sell your product. You need to look carefully at what revenue model fits your product. You should also look closely at your target group, what works for one group may be terrible for another. For example, young people today are very much into subscriptions, but you don’t need to appeal to older people with this. It is therefore always important to look at both your product and your target group and to link the right revenue model to it.
What are revenue models?
There are different ways to operate in the market. So with that comes revenue models! But what exactly is an earnings model? An earnings model is a strategy with which you make your turnover. You choose a method with which you earn your money, can become successful in the future and you meet the opportunities and challenges of your model.
It indicates exactly what your business does and what makes it different from others. Earning models are part of a business model and an important building block for your business plan.
Premium model
The premium revenue model lets users pay a one-time fee to get access to a product/service. You can think of the Online Office package, apps or Xbox games. This revenue model is similar to the entry-level model, but with the premium revenue model you make all your users pay.
Circular business model
One of the best known, but also one of the most sustainable business models is the circular economy. Circular business models are aimed at extending the life of products as long as possible. You want to preserve the value through reuse. Is sustainability important to your target group? Then this is the perfect business model. In addition, you can implement this in all types of businesses! Sounds like a dream, right? We tell you more about the advantages of this model in our blog.
Goods sales
The most popular and common of all earning models is really the goods sales. Selling goods is not only a simple model, but this model sells products that have an economic value. In our blog we will help you on your way to get the opportunities out of this model. Hustle your products and get a high turnover!
Service business model
The service business model is for the real service entrepreneurs among us! Read in our blog how the model is composed of different services that perform the total business activities. We will tell you how this model offers you stable income and it is focused on service and maintenance, so you get personal customer loyalty.
Subscription model
Netflix, Videoland and Disney+. You probably recognize it: the subscription model. In this model you pay a fixed amount over a fixed period to be able to use the product/service. The model is flexible because you can apply it to almost anything. There is also simplicity in use and a bit of service comes with it. Only benefits to the customer right? We tell you how you can work with this model!
Razor and blades model
One of the most special revenue models is the bait model! The bait model (razor and blades model) is slowly climbing to the top because of its distinctive way of earning. You sell a unique product at a low price, but the specific matching product is a tad more expensive. Without the matching product, you can’t use your unique product. Are you curious about the successful examples? We have listed them.
Entry-level business model
Reach, reach, reach. This revenue model can help you generate immediate reach. The entry-level model (freemium model) is a combination between the bait model and the advertising model where your product starts as a free version. As soon as the users are satisfied and want to use additional functionalities or features, they will have to pay for them. We tell you how to best apply the entry-level model.
Brokerage model
Did you know that the brokerage model is a kind of matchmaker in the entrepreneurial world? With this revenue model, you bring together two parties who are looking for each other. You get your income from a successful transaction between the parties. Your success is correlated with the customer’s success, which makes the consumer trust you!
Advertising model
Want to profit from other people’s ads? You can with the advertising model. Over the years, advertising has become an increasingly large and important aspect of marketing. From an ad in a bus shelter to an international commercial on television. Nowadays, you can’t miss ads and that’s why this is a promising revenue model.
