31–40 of 73 posts
I was hoping for more fleshed-out examples of why the business models were good, but the list was interesting nonetheless. My two personal-favorite business models are (in no particular order): Tesla and Miley Cyrus. Tesla: evident if you're familiar with it ( http://www.teslamotors.com/blog/secret-tesla-motors-master-p... ) My interest in the Miley Cyrus model might need a little more explanation. Back a few months…
I might quibble, on a very minor level, with calling these "business models." More accurately, they are revenue sources. One could argue that this is a small distinction, but there is a real difference. A revenue source is necessary, but not sufficient, for the operation of a healthy business. Plenty of other things go into the mix, even leaving aside the obvious (product): COGS, logistics, competitive differentiators, etc. There is so much more to the success of Uber, for example, than just the "excess-capacity market" revenue model. All of what Uber does with its drivers on the back end, for instance, is quite sophisticated -- and equally responsible for the company's success as its top-line, nominal model.
Further annotation -- and I'm happy to get my hands dirty and contribute -- will also help us flesh out the pros and cons of some of these models. "Pay-what-you-want," for instance, lists Radiohead as the example. That's fine. But what a lot of folks don't realize is that Radiohead made approximately 80% of its money from the "In Rainbows" album release by selling collector's edition box sets for $81 a pop. In that case, pay-what-you-want served as a loss leader and demand driver, and the collector's sets earned the real money. Either of these tactics, without the other, would not have worked as well. The combination of the two was a stroke of genius -- allowing the band's customers to segment themselves, and in effect, adding an ultra-premium tier to the top of the "pay what you want" curve. The operative lesson of Radiohead's experiment was that pay-what-you-want can be effective, but you need to structure the pay scale to account for your customer segments' different willingness to pay for different versions of the same product. Give them suggestions, at both the low end and the high end of the product/price spectrum. If you don't, you're anchoring everyone towards the low end. And that leaves a lot of money on the table. This lesson has carried over to sites like Kickstarter, to great effect. (I have no idea if Kickstarter took any inspiration from Radiohead's experiment; this is just a thematic observation.)
I was hoping for more fleshed-out examples of why the business models were good, but the list was interesting nonetheless. My two personal-favorite business models are (in no particular order): Tesla and Miley Cyrus. Tesla: evident if you're familiar with it ( http://www.teslamotors.com/blog/secret-tesla-motors-master-p... ) My interest in the Miley Cyrus model might need a little more explanation. Back a few months…
I'm assuming the Rap Genius guys are following the Miley Cyrus model then.
The first they apologized (and were penalized) for, the second they fired the founder. They aren't embracing negative attention, as far as I can tell.
I was hoping for more fleshed-out examples of why the business models were good, but the list was interesting nonetheless. My two personal-favorite business models are (in no particular order): Tesla and Miley Cyrus. Tesla: evident if you're familiar with it ( http://www.teslamotors.com/blog/secret-tesla-motors-master-p... ) My interest in the Miley Cyrus model might need a little more explanation. Back a few months…
I was hoping for more fleshed-out examples of why the business models were good, but the list was interesting nonetheless. My two personal-favorite business models are (in no particular order): Tesla and Miley Cyrus. Tesla: evident if you're familiar with it ( http://www.teslamotors.com/blog/secret-tesla-motors-master-p... ) My interest in the Miley Cyrus model might need a little more explanation. Back a few months…
I'm pretty sure with a father and godmother long timers in the music business, I'm pretty sure she knows what she's doing. For another take that confirms it: http://www.youtube.com/watch?v=wOwblaKmyVw
[0]http://www.youtube.com/watch?v=My2FRPA3Gf8 - note that this song has 20x more views
One thing worth mentioning for games is what Valve is doing with Dota 2. The game is truly free to play, and giving them all the money in the world will not give the player any in-game advantage. On the surface, the game sells various hero skins and other cosmetic items that are little more than vanity items. Looking closer, it seems that Valve is making (or at least trying to make) money by developing a scene of pro…
This competition model has been common at racetracks (motorsports) around the country for a hundred years. The promoter takes some of the "gate" to pay prize money. Sometimes the pros even get money just to show up, so that there are big names at the event. The model is viable, but a little risky sometimes if you don't know how many spectators will pay. Usually the prize money is set before the cash flow is known.
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