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Step 1: Flowchart
it for free!
Maybe
Of course! How
No!
Not relevant
for my product!
devastated if
7. Loss/Aversion
Absolutely!
Don't forget
to check this
one as well!
Yes, they
Solution
the money!
Definitely!
mass needed!
Of course!
2.Tip jar/donation
3. Barter
faster, stronger!
we make
software!
We do have some
Harder, better,
That's why
Seriously? We are
Charity?
No thanks!
5. Pay-what-youwant
won't receive
extra costs...
enough donations?
give it a try!
Not knowing
No, it would
what's coming
lower the
is always kind
of exciting!
10. Convenience/
Shortcuts
Sounds like
You won't
gambling!
regret this!
F*ck off!
of fresh money
Yes!
4. Freemium
Hmmm...
Making money on your product seems to be a tough one.
Get out of your comfort zone! It's innovate or die.
in the morning...
For example:
10. Convenience/ shortcuts
Integrated
1. Early Exit
No...
value!
Yes!
Nope, no critical
Hell yeah!
6. Vanity/
Reputation
17. Matchmaking
platform
Yes,
My product is all
Nothing better
trusted
partner
In fact, yes!
Remember:
Advice to
16. Data Resell
they need!
Nope!
advantage!
is fine!
a teleportation! Find
the exit...
Close...
12. Exclusivity/
Limited Availability
Yes!
Damn right
about that!
23. Crowdfunding
Not really!
Not
We will launch
nessecarely!
anyway!
Yes!
Monetization driver
(How to cash in)
Free!
For the user.
Third party
pays the bills
Nope!
Yes!
No, but we do
have a recurring
cost in mind!
Crowdfunding is
Yes!
Try to imagine
Try to imagine
Try to imagine
Try to imagine
9. Mystery/Surprises
Step 3:
Brainstorm template
15. Affiliate/
Referral
is our competitive
No!
be useful!
users to pay!
it works!
Not relevant!
14. Advertising
Ads, are
Not
Note: This is not a scientific tool. Dont expect the ultimate solution.
you crazy?
necessary!
users to pay!
They would be
Do you dream of
making even more
money with this idea?
Check!
Not really...
pay otherwise?
Do you think your users could
feel uncomfortable if all their
friends know that they use
your product/service ?
This flowchart will be most effective in one of the following 2 use cases:
You have a new idea and you are wondering if you can monetise it.
You already developed your business model and you would like to
challenge your current monetisation strategy.
Step 2:
Revenue Cards
Yes!
teleported
yourself here!
Obviously...
Start here!
What wou
for yo
Try to
Yes!
Nope!
22. Fractional
Ownership
Good
idea!
25. Razor-blade
19. Subscription
(time related)
20. Leasing
21. Pay-per-use
24. Add-ons
What wou
for yo
Try to
Try to imagine
Try to imagine
for yo
Try to
#1 Vanity/Reputation
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
1. Windows 8 Pro
2. Reputation in games
Pro and Business versions of Windows do not differ that much in features,
while Pro is priced much higher than the basic version. But wait Do you
want to be the one opening your Windows Home Edition with a new client?
Gamers of World of Warcraft often pay to fit in, for exclusivity, to show
commitment or simply to show off to the starters (aka .#noobs) in the game.
Its all about perception!
#2 Loss/Aversion
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
A technique used by drugs dealers for many years and also known as locking-in
customers: give something for free (or cheap) and provide lots of hassle ( or
effort) when they want to change to a different alternative.
2 Examples to turn theory into practice
1. Dropbox
2. Seven
Dropbox is the most expensive player in the cloud storage market, but they
were first and everyone integrated 3rd party services with their dropbox
account. Who knows what might stop working once you switch to an
alternative?
Seven is a fitness app with a goal to workout each day for 7 months. If you
miss a day, you lose a heart. Once you lose your 3 hearts, you have to start
again from zero. Expert tip: Extra hearts can be bought ;).
#3 Privacy/Anonymity
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
When you dont want other people to find out who is using the service, users
might want to pay for this matter.
2 Examples to turn theory into practice
1. DateMeKenya
2. Vanilla Visa
Anonymity is crucial when you want to hide what you are doing.
DateMeKenya has the anonymity feature only available for their paying
members. You dont want your husband/wife to find out that you are dating,
right?
Vanilla Visa is a gift or reward card that works the same as a normal
creditcard but without identification. Fees are higher than regular credit
cards but the money is untraceable.Expert hint: Extra hearts can be bought ;).
#4 Mystery/Surprises
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
Giving people a reason to believe that they might win a lottery creates customer
experience. Not knowing whats coming can often be exciting!
2 Examples to turn theory into practice
1. Birchbox
2. Mystery in Gaming
Birchbox is a subscription service that sends you (or someone that received it
as a gift) a monthly box full of cosmetics. You wont know whats inside until
you open it and thats why its so much fun to find in your mailbox.
No payment trigger that the gaming industry doesnt use! In this mystery
crate you have a (small) chance of finding rare items (eg. crystal sword). You
might call it a virtual lottery.
#5 Convenience/
Shortcuts
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
1. Shyp.
2. Zynga Games
You want to send a camera to your brother abroad but you hate the hassle
with sending? Shyp will be your best friend! You simply take a picture of the
camera, choose the destination and Shyp comes to pick it up within 30
minutes.
The power of Zynga-like games is the simple choice e.g. when you want to
grow a plant you can: grind (click 5000x), spam (invite 50 friends for double
speed) or pay (#coins).
#6 Helping Peers/
Gifts
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
Think about this as paying a round of drinks in a pub with your friends. You will
get instant social status as a result. Giving something valuable to someone you
care about creates satisfaction.
2 Examples to turn theory into practice
1. A Small World
2. Baekdal Plus
A small world is a social network for the #UltraRich. If you are not part of it,
you wont be one of them. To get access, you need an invite. To get an invite,
you need to pay. Get it?
You check Baekdal Plus, a website full of in-depth research articles and you
find a highly relevant article for your colleague. Baekdal Plus lets you share
that $20 article for free if you have subscription ($9/month). Great deal, isn't
it?!
#7 Exclusivity/
Limited Availability
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
1. Vertu
2. Wu-Tang Clan
Vertu offers a phone for a stunning 12 000 and you know what? People pay!
The reason: its your key to exclusive services (e.g. a concierge to call in any
circumstance) and events.
Instead of selling copies to all their fans, Wu-Tang Clan released just one copy
of its secret Album. Musea can rent the album to offer fans to listen the
album once for $40/time.
#8 Non monetary
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
There is no such thing as a free lunch! Apart from direct revenue, companies
launch products/services for other reasons: user base, prestige, contact details,
etc.
Service
HQ
Inc
MyStartup.com
Consumer
2. Thunderclap
The world's first crowd-speaking platform. At time of writing
(March 2015), over 3 million people have donated their social
reach for ideas and causes that matter. The service given to the
users in this case is reputation.
#9 Tip jar/Donation
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
Some products need a lot of users to function appropriately. Some people will
highly appreciate what they get. Giving these people a chance to show this
appreciation in a gift () is a tip jar/donation.
HQ
Inc
MyStartup.com
Information
Consumers
Donation
2. Amazon Smile
Amazon uses donations as a sneaky loyalty scheme. With every
purchase, Amazon Smile donates 0.5% of the purchase price to
a cause of your choice.
#10 Barter
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
Consumer
HQ
Inc
Platform
Product
Product
MyStartUp.com
5
Commission
Consumer
Consumer
Product
#11 Freemium
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
Segmenting your user base in users that get the service for free and users that
pay, is called a freemium business model. The paying customers usually have
access to superior features.
2. Dropbox
Dropbox gives more online space to their PRO users that paid
for the service. Meanwhile, Business users have unlimited
space and extra services for teams to collaborate.
#12 Pay-what-youwant
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
Similar to donation but with a stronger focus on revenues, not users. Here you
get to choose what you pay for the product. Only works when variable costs are
negligible (e.g. music, games, virtual books, software, etc.)
HQ
Inc
MyStartup.com
Information
Consumers
Money
2. 8k design agency
Offer what you want for their services and they pick the offers
they like. Apart from money, value drivers for 8k could be:
availability of their designers, big brands for their portfolio, etc.
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
Sometimes you want to target a user segment that simply cant afford your
product in any way. The decision to make another segment pay double has been
made for charity: laptops, flash lights, etc.
2. Starbucks campaign
For every coffee bought, Starbucks donated 25 cents to Oasis,
an organisation helping locally based family organisations
worldwide.
#14 Advertising
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
The user becomes the product. Companies pay to reach the customers of your
service. The desired result is to drive consumer behaviour with respect to a
commercial offering.
2. Pinterest
Pinterest is a great way to integrate advertising in behaviour
that people choose to keep doing: finding inspiration - clothes,
furniture, moodboards, etc.
#15 Affiliate/Referral
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
When referring your customers to another company, you are driving their sales.
Depending on the product and program, 5-10% of the product price, is a good
indicator of the lead fee youll receive.
2. ASAP54
ASAP54 is the Shazam for fashion. If you see something you like,
the app will tell you what it is and where you can buy it. Often
you will even get a direct buying link. Well, thats convenient
(and #smart). Good integration is the key!
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
2. Data Coup
The money saved by not providing a free service could be given
to the users willing to share their data. Thats exactly what
DataCoup is doing. You can earn up to $9/month, providing
them all data you already give to other companies.
#17 Matchmaking
Platform
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
When matching 2 relevant parties to each other, both value your service and
might pay for it. Dating platforms are the best known example of matchmaking
platforms.
Money
HQ
Inc
Experience
My organization
Experience
Service
2. Babelverse
Consumer
5
Money
#18 Marketplace
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
A marketplace always has clear supply and demand. Bringing these 2 sides
together might require a platform (marketplace) or a serviceprovider (broker)
The one delivered most value to is mostly the one that pays the commission fee
(buyer, seller or both).
HQ
Inc
MyStartUp.com
Platform
Commission
Money
Consumer
Consumer
Experience
Product
Community
Service
2. Ebay
Ebay is a well known auction platform for second hand goods.
Apart from commission on listing fee, sellers are also charged
to keep their offer on top of the page.
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
This is how most products are sold. You pay a one time fee and you own the
product or you receive access to a lifetime service.
1. A banana
You buy it. You draw a face on it to extent its lifetime for 3
more minutes. You eat it. Youre done.
HQ
Inc
Service
MyStartUp.com
Product
Consumer
One-Time Fee
2. VPN Unlimited
VPN Unlimited is your one-stop shop for protecting your WiFi
connection, securing your online activity, and bypassing web
content restrictions. You pay 40 for a lifetime subscription.
#20 Subscription
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
A subscription is a service you sell in a certain timeframe. The service can vary:
receiving a newspaper every day, using a cloud service (software), being able to
call car assistance when needed, etc.
HQ
Inc
Service
MyStartUp.com
Consumer
Subscription
#21 Leasing
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
Customers receive a physical product for a limited period to fulfil their needs.
Within the leasing period, a product can only serve the needs of one customer
(exclusive use).
HQ
Inc
Inc
Service
Flat Fee
Company
MyStartUp.com
Product (bought)
Consumer
Fee/Time
2. Lease a Jeans
Not much people think about it, but leasing is a revenue model
used for other goods as well: diamonds, bags, jackets and yes,
jeans as well. Hint: check www.mudjeans.com
#22 Pay-per-use
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
Some products are only used a limited amount of times per customer (a car is idle
97% of the time on average). Paying only for the times you need a product/
service creates flexibility and increases the value per use.
HQ
Inc
Service
MyStartUp.com
Consumer
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
A pricing strategy with highly flexible prices for products or services based on
different variables: demand-based, time-based , profile-based, etc.
HQ
Inc
Price based on
one or multiple variables
My organization
Consumer
Service
2. SF Park
Parking spaces are provided with a sensor, detecting parking
availability. To help achieve the right level of parking availability,
SFpark periodically adjusts meter - and garage pricing up and
down to match demand. Fact: 14 pilot project in San Fransisco
#24 Fractional
ownership
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
When customers are not able to pay for the entire product, you can allow them
to buy it together with peers. Another variation of buying together with peers is
group buying to achieve a discount on everyones product or service.
Consumer
HQ
Inc
Shared Product
MyStartUp.com
Consumer
5
Consumer
Product
Owners
2. Share a car
This could be your car-sharing calendar: brown is your
neighbours holiday in Spain. Red are your important meetings
in Paris. The rest of the time the car is available.
#25 Pre-Sales
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
MyStartUp.com
Service
% Commission
Small Reward
Small Micro-Funding
Community
Member
Large Reward
Fund Seeker
Large Macro-Funding
Community
Member
Funding
Crowd
2. Pave
Pave is a service to fund students for expensive universities. As
a student, you pay part of your wage to the investors once your
start earning.
#26 Up-selling
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
aka. Add-ons. Some customers might have deeper pockets than you think.
Always allow them them to spend all the money they have! The gaming industry
understands this aspect, the music industry does not.
HQ
Inc
Free/Cheap Product
MyStartUp.com
Consumer
Low Price
Upgrade
2. Wordpress Support
5
Fee
#27 Razor-blade
Free!
For the user.
Value
Proposition
Third Party
pays the bill
Pricing tactic
Revenues are spread over the lifetime of a product. After a flat fee, customers
have recurring expenses they cant refuse. (e.g. Razor blades, coffee pads,
updates GPS devices, etc.)
their
if
user
data
was
lost
!
High
chan
ce t
find
hat
mor
you'l
e re
l
ason
user
s fo
s to
r
pay!
Abso
lutely
!
e sta
tu
user s only b
e
base
of yo relevant
ur p
rodu
ct?
No!
Amo
ngst
ever
yone
!
Not
relev
ant
nece
ssar
y!
Don't
forg
et
to c
heck
this
one
as w
ell!
Hell
Do y
prod ou wan
t to
uct/
offe
ra
that service
to
can't
affo people
rd it
?
!
Yes,
that
wou
ld
be u
sefu
l!
Nop
Exa
ct
e!
One
yeah
!
No...
Wha
ta
box bout of
ferin
with
wha out tell g a
t's in
in
side g
?
it w
ould
lowe
r th
e
value
!
10. C
onv
Sho enience
rtcu
/
ts
Not
at a
ll, th
use
ey a
ever
lread
ythin
y
g th
ey h
ave!
Lapt
op P
e
ly!
Doe
s
amo your pr
unt
of us oduct n
ee
ers t
o sh d a crit
ic
ow it
's va al
lue?
Nop
e, no
critic
mas
al
s ne
eded
!
kno
wing
wha
t's c
omin
is a
g
lway
s k
ind
of e
xcitin
g!
3. Ba
rter
Char
ity?
No t
hank
s!
Serio
usly?
We
not
are
living
Midd
in th
le Ag
e
es a
nym
ore!
yste
ry/S
urpr
ises
Alwa
ys c
ome
t
Thir
pays d party
the
bills
Yes!
Can
part you thin
of yo
k
ur u of featu
ser b
r
ase es that
wou
o
ld pa nly
y for
?
Didn't
I say
wan
I don
t th
't
em
to p
ay?
You
won
ing m
't
oney
regr
Get
et t
Hmm
on y
out
his!
our
m
of yo
..
ur co produ .
ct
mfo
rt zo seems
t
ne!
It's i o be a to
nno
vate ugh one
Clos
.
or d
e...
ie.
but
yet
so f
ar...
#Aw
eso
opti me! Yo
migh ons tha u have
so
t
t be
willi your us me
e
ng t
o pa rs
y for
.
Will
th
exclu e user h
ave
sive
t
this right to he
prod
u
uct? se
Not
Yes!
4. Fr
eem
ium
playe
d M
Go
onop
back
oly?
to s
tart
!
Your
jour
ney
a te
requ
lepor
ires
tatio
n! Fin
the
d
exit..
.
Do y
really
!
ou w
a
prod nt the u
se
uct o
nce r to ow
they
n
pay? the
Not
ness
ecar
ely!
Yes!
Wou
inte ld you li
k
rest
from e proof
b
the
Yes,
Integ
rate
d
Solu
tion
not
abou
t
mon
ey!
Of c
ours
e!
5. Pa
y-w
ha
wan t-yout
Ever
part
n
is fin
It's
Is it
dire your go
ct re
al to
v
h
prod enue fr ave
o
uct/
serv m this
ice?
Tha
t's w
hy
we
mak
e
soft
ware
!
We
do h
ave
som
extr
e
a co
sts..
.
Adv
trus
D
inte o you w
ant t
grat
e
to b d solut o have a
ion t
e yo
n
ur o
wn o hat seem
fferin
s
g?
itely!
Is th
e
Mak
hese
colou
rs?
Fre
or th e!
e us
er.
esell
www.boardofinnovation.com/FindNewRevenue
dver
tisin
g
16. D
ata R
Defin
var
non iabel co
-exis
s
tent t per ex
t
or n
eglig ra user
ible?
14. A
Shh
t... u
ser
is o
data
ur c
omp
etitiv
adva
e
ntag
e!
Are
t
serv here an
y co
ices
m
/p
that roduct plemen
st
ta
your
user o your o ry
s ex
pect ffer
?
My
prod
uct
is
all
they
need
!
In fa
c t, y
es!
k!
Ads,
are
you
craz
y?
No!
Not
Chec
really
...
ou g
rele enerate
vant
u
for o ser-dat
a
ther
s?
ild
Sou
nds
like
gamb
ling!
F *c k
off!
9. M
Not
Do y
r Ch
13. G
et
Give one one
Do y
o
wou u believ
ld ha
e
ve in other c
o
your terest in mpanie
s
user
t
base argeting
?
It's
not
abou
abilit
t th
y to
e
pay.
just
I'm
not
s
ure
ever
if
yone
will p
ay!
Do y
o
res ur use
user ources rs have
no
th
s) no
rma e comp n mone
lly w
a
t
ould ny (or o ary
th
have
to p er
ay fo
r?
Did
yo
sign u deve
ific
lop
the b antly m a featu
or
re
est a
ltern e conve /produc
nien
t
ative
user t than
s ha
ve?
No,
12
Limit . Exclus
ed A ivity/
vaila
bilit
Not
Can
th
stat e user r
us b
y us eceive a
ing t
he p higher
rodu
ct?
Wou
ld
hare users v
alu
the p
rodu e the po
ct w
s
ith t sibility
heir
t
peer o
s?
nt
t mo more th
men
an o
n
t
user with yo e
?
ur
onta
c
Doe
s
rem your pr
emb
odu
user er prev ct/serv
ic
? (eg
io
. me us use e
mor
o
y ca f a
rd)
2.Tip
Afra
id th
won
't re
enou
gh d
ona