10 Business Models that rocked 2010 Feedback? Comments? Twitter: @nickdemey BoardofInnovation.com
Some people stumbled upon great ways to make money. During 2010 many promising concepts reached a tipping point. Let’s take a closer look at their business models
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10
PatientsLikeMe.com Example case: “The feedback feedback of other patients with similar conditions made 10% switch from doctor. Welcome We lcome in the information age. ”
+70,000 patients share medical records*
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The Business Model behind PatientsLikeMe.com a community platform for patients Forget privacy, people are sharing more info than ever, even medical records. By offering a free service PatientsLikeMe can attract thousands attract thousands of patients. patients.
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The Business Model behind PatientsLikeMe.com a community platform for patients With permission, PatientsLikeMe gathers PatientsLikeMe gathers data that can be resold for huge sums to third parties likes pharmaceutical companies. Simple. Marvelous.
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Flattr.com Example case: “When Paypal, Mastercard and others blocked Wikileaks, Wikileaks, the Swedish Flattr donation system kept Wikileaks’ Wikileaks’ income stream afloat”
1 Wikileaks article led to +3500 donations*
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The Business Model behind Flattr.com a service to structure donations for content Online readers consume tons of content of content monthly. monthly. Strong content can be ‘flattred’ via a button. button. (similar to ‘like’ on Facebook)
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The Business Model behind Flattr.com a service to structure donations for content You decide wich fee you give monthly monthly to to Flattr.com. Every month, Flattr splits your fee evenly over all creators and takes a 10% commission. commission.
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8
Groupon.com Example case: “Exclusive deals limited in time made Groupon the fastest growing company ever, leading to hundreds of copy-cats world wide.”
GAP made $11,000,000 within 1 day
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The Business Model behind Groupon.com a broker platform with exclusiv exclusivee discounts Groupon uses a no cure no pay strategy . The Theyy guarantee that a minimum number of clients will take the discount that is communicated.
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The Business Model behind Groupon.com a broker platform with exclusiv exclusivee discounts Next, when enough people take the massiv massivee discount, the deals goes on. Groupon takes 50% of the revenue resulting from this promotion.
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Spotify.com Example case: “In August SONY BMG Sweden confirmed they already made more money out of Spotify music service than iTunes.”
750K paid subscribers are already hooked*
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The Business Model behind Spotify.co Spoti fy.com m an adbased freemium model The basic music streaming service is offered for free to music fans. Advertisers pay to pay to cover the costs.
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The Business Model behind Spotify.co Spoti fy.com m an adbased freemium model A small percentage does already pay pay for a premium service. The The 2011 US launch must be the most anticipated music service launch ever. ever.
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6
PayWithaTweet.com Example case: “Paying with the value of your social network was never more easy. Expect more concepts like this in 2011. (e.g. SocialWhispers.com,...)”
+300,000 people paid already with a tweet*
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The Business Busin ess Model behind b ehind PayWithaTweet PayWithaTweet pay with the value of your social network More a marketing tool than tool than a business model but remarkable enough to mention. Instead of paying with cash, users buy products with exposure. exposure.
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The Business Busin ess Model behind b ehind PayWithaTweet PayWithaTweet pay with the value of your social network Hopefully boosting Hopefully boosting the viral effect what effect what would result in a better reputation for the initiator initiator.. The latter could use this to sell more products later on.
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Ever tried to visualize your business idea?
Give it a try and send us some feedback info@boardofinnovation.com - @nickdemey continue to #5
5
HumbleBundle.com Example case: “Buying indie games and supporting charity is an attractive formula. Being open and transparant helped this pay-what-you-want concept.”
$1,824,408 was raised within 1 week
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The Business Model behind HumbleBundle a succesful pay-whay-you-want formula You decide how much you pay. Information of previous buyers (How much do other Mac users pay?) set anchor prices to encourage payments payments..
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The Business Model behind HumbleBundle a succesful pay-whay-you-want formula To boost sales Humble Bundle gives Bundle gives buyers control on control on how the money is divided over themselves, charity charity and and other organizations.
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4
Free with in-app sales Example case: “The sales of virtual goods has flourished in 2010 and even outperformed mobile ads. 6/10 top grossing iPhone apps can be bought b ought for free.”
80% of revenue comes from in-app sales*
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The Business Model behind In-App sales cross-selling strategy By offering the game (or application) for free they try to get you in. If the experience is addictive, users are willing to pay for extras.
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The Business Model behind In-App sales cross-selling strategy Often an intermediate credit system is used to loose the real-world value perception of the virtual goods that can be bought with it.
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3
Quirky.com Example case: “Quirky raised the bar for co-creation platforms by paying out influencers. Every week 2 new products are being launched.”
+500 people co-designed 1 new iP iPad ad stand*
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The Business Model behind Quirky.com a co-creation platform + e-shop Inventors pay Inventors pay $99 to submit their submit their idea to this co-creation platform. After After selection a community of designers will co-design will co-design and improve this product.
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The Business Model behind Quirky.com a co-creation platform + e-shop Suppliers will set a minimum amount on the pre-sales pre-sales.. If enough people buy this product, it will be go into production.
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The Business Model behind Quirky.com a co-creation platform + e-shop Revenues from the e-shop are shared with the community. community. 30% of profit goes to the initiator. 30% will be proportionally divided amongst divided amongst the influencers.
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Airbnb.com Example case: “In times when more people discover the joy of sharing Airbnb.com, swap.com swap.com and others found ways to make some cash on this movement.”
+700,000 nights are already booked*
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Clickworker.com Example case: “Just like Amazon Mechanical Turk, people world wide are performing micro-tasks gaining micro-payments. ”
+300.000 people paid already with a tweet*
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The Business Model behind AirBnb.com a one-sided matchm matchmaking aking platform With this bottom-up P2P model AirBnb model AirBnb connects normal people so they can rent out spare rooms to eachother eachother.. A professional service democratised .
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The Business Model behind AirBnb.com a one-sided matchm matchmaking aking platform Depending on the rental price AirBnb takes a commission up to 12%. 12%. Other platforms use posting use posting fees when people just swap goods or services.
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Kickstarter.com Example case: “Looking for $15,000 funding? Scott Wilson convinced 13,512 people to pledge money to develop an iPod Nano Nan o Watch.” Watch.”
$941,718 was funded within 30 days
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The Business Model behind Kickstarter.com a marketplace for fund seekers First step, give Fund Seekers some exposure so they can connect with a crowd of ‘backers’ who are willing to pledge some money for their ideas.
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The Business Model behind Kickstarter.com a marketplace for fund seekers Next, people who gave funding funding to to a project idea are being rewarded (small rewarded (small or large) depending on the amount they pledged.
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The Business Model behind Kickstarter.com a marketplace for fund seekers Kickstarter takes 5% of the funding as a commission.
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Made by Board of Innovation Innovation international office for business model innovation
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01/01/2011
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