Coming with a fabulous idea is easy and indeed proof of a creative mind. However, turning it into a successful business is indeed a matter of courage.
Having said that, if you are ready with your business ideas and ready to make it a brand story, here are the most important revenue model details., that you definitely be needing to grow your business.
Are you ready for your goal? Then check out these ideas in case some of them work for your start-
up:
SUBSCRIPTION REVENUE MODEL: This is an interesting model where your customers pay monthly / yearly in exchange for unlimited access to your product or service, instead of buying it over and over again. This is the best model for, for example, web or application-based businesses. With that, it becomes really important for business owners to ensure that they keep adding new services/products for their valuable subscribed customers. This in return will work as customer retention which is the main challenge of this model.
- ADVERTISING MODELS: If you already have large number of existing customers, this one method can boost your sale and bring in more new clients.
The source of income is advertising services that pay you for clicks on ads or views posted on your website or mobile app. The more clients you have, the more you get. It is one of the easiest ways to monetize your business and very easy to use. However, here is a word of caution, it cannot be considered as the main income as a starting point as people are often annoyed by a large number of advertisements.
- FREEMIUM MODELS: It is a model that build habits of your customer wherein customer is allowed to explore more about your products and services by using the basic service free of cost. And once, they are happy, they would gladly invest their money in your premium services.
For example, if your customer wants to add premium features to their account in your product, they have to pay for it. Usually “paid service” means “higher quality service”, so this model makes sense if your start-up is based on intellectual values.
However, it is always a good idea to know the no profitable side as well, which is, huge investment to convince customers that after placing an order they will receive something that will be matching up well with their high expectations
- ON DEMAND REVENUE MODEL: This model works well for business who are focussed on a particular service that is providing a real time solution of a big and common concern. In short, supply is meeting demand timely. Often used in specialized companies such as IT troubleshooting or manual manufacturing. Rule of thumb: pay as per cost
- FREE PRODUCT, PAID SERVICE REVENUE MODEL: Free products are always a good way to promote to attract new customers; create a positive buzz among potential customers. But in order to use it correctly, your customer must pay. Just like the service of installation, configuration, delivery or any other additional services.
This model does improve your revenue; however, the reputation is a real deal to achieve success in the model. If you are company has already positive branding in the marketing, this model will only get your profit. And hence, it is recommended to implement this method, once you are already known in the market.
AT THE END
To start any successful business, the requirement of creating its blueprint is a smart move. Likewise, to run the business smoothly, it is important to make the right decisions and choose the best revenue plan basis the nature of business.