Determining your revenue model

Your business plan has to spell out…your revenue model for your product or service.…This is a huge determinant of how successful…your business is going to be.…How are you going to make money at this?…Is it going to be a one time charge,…or are there recurring or subscription…charges for your product?…Are there going to be cross-sell…or upsell opportunities?…Are you going to sell add-ons…that compliment the product or service?…How are similar products priced in the market?…What do your competitors do?…What's their revenue model, if you're looking for ideas.…

Also ask, what do your customers willing to pay?…Conduct some pricing market research,…or look at competitive offerings and how they're priced.…Then analyze the value of your product…and the value it creates and price as a portion of that.…Don't leave value on the table.…And your choice of a revenue model…is going to determine how much…of that value you're going to capture.…For my business, we sell training courses,…and I could price it two different ways.…I could price based on how much…