Innovators and entrepreneurs have three main models they should detail within their strategy: business model, revenue model, and monetization model. Building the monetization model is often difficult early in the process. Facilitators and business centers need to create problems that force users to identify and communicate how their product is going to be offered and how transactions take place between buyer and seller. Innovators must declare whether they are using an Outside-In Approach (Customer value-focused) or an Inside-Out Approach (Internal resource-focused).
Define the following components to establish a foundation for their monetization model:
Value Proposition:
Medium of Exchange:
Pricing Model:
Success metrics:
Value Proposition:
Revenue Model:
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E-Commerce Models |
Online Applications |
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Product Sales |
consumer goods, retail, wholesale |
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Advertising |
search engines, Web portals, directory pages, commercial Web sites |
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Service |
online fee-for-service, fee-for-transaction, subscriptions |
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Inter-Organizational |
procurement, supply chain, distribution |
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Third-Party |
e-malls, online auctions, online exchanges |
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Licensing |
intellectual rights, patents, copyrighted material |
Business (Offering) Model:
Success metrics: