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Creating a Profitable Revenue Model: Go-To-Market Strategy, Pricing, and Presentation | CustomerThink

Pricing and Presentation Models
Here is where the options open up for you. Thirteen pricing and/or presentation models are listed below and this is not an exhaustive list. If one of these models doesn’t fit, perhaps it will spark another idea to help grow your revenue.

  1. Repackage your products to appeal to a new or broader audience (e.g., new vertical or horizontal markets).
  2. Find lower cost and/or more efficient ways to sell. For example, you can replace direct sales with e-commerce, telephone calls or free trial offers.
  3. Offer add-on products or services. If you are a product company, consider adding a service component. Likewise, if you are a product supplier, add a product revenue stream. In a former life, I was director of marketing at Group 1 Software, which was a spin-off from a services company. This model certainly worked for Group 1 because it soon far eclipsed the revenue of the parent company and was eventually purchased by Pitney Bowes for $480 million.
  4. Open up a new channel (e.g., distributors, resellers, VARs, strategic alliances).
  5. Merge with or acquire other companies to achieve greater market or product depth and breadth.
  6. Adopt “all you can eat” pricing, where users or customers can utilize as much, or as little, of your products and services as needed.
  7. Offer a subscription service with monthly or annual pricing.
  8. Sell access to your customers. You can do this by offering your list, affiliate, joint offers, data, research or whatever has value to third parties.
  9. Provide a “freemium” model. Give customers no-cost access to your (limited) product or service, with the intention to upgrade them to a paid model. QuickBooks is a good example.
  10. Provide a free trial. In this model, you give customers a taste of your product for a period of time before they commit. This works well for companies that can create stickiness where users won’t want to give a product up once it is in use. Salesforce.com, Norton and LinkedIn Sales Navigator have successfully deployed this model.
  11. Create a platform. Platforms are online connectors of buyers and sellers. Examples on the consumer side are Airbnb, VRBO and hotel sites. On the B2B side you have companies like Shiply.com, which allows companies to input their shipping needs and receive bids from transportation companies. Another example is Maistro, which provides an online marketplace to give businesses access to a global network of vetted service providers.
  12. Value-based pricing. The concept is to price products or services based on the value received by the customer, in areas like time, usage or demand vs. supply. Value-based pricing can also be based on outcomes – like a percentage of savings or new revenues achieved.
  13. Tiered Pricing: e.g., Basic, Team, Professional, Enterprise. Sometimes, you can sell more by providing pricing options. BlueFolder.com is a great example of how this works, offering their clients four different pricing/feature option for its service management software: Basic, Team, Professional and Enterprise editions.

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Creating a Profitable Revenue Model: Go-To-Market Strategy, Pricing, and Presentation | CustomerThink.

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