cases & examples by www.boardofinnovation.com on why people put money on the table. Digital revenue models explained. (facebook, zynga, flickr, app.net, kickstarter, evernote, yammer,...) - Board of Innovation
7. First understand why people
put their money on the table.
Only then explore how you can
capture that value with a
strong business model.
8. . Like a Boss
. Be part of a Mob
. Mystery & Thrills
. “I own this Sh*t”
. Collection Completion
. Keeping secrets
. Harder, better, Faster!
. the VIP-treatment
. Push the buttons
. Just like me
. Serve me
. The clock is ticking
. Reduce guilt/ fairness
. Mine is bigger
. Show me the numbers
. Call me maybe?
. Fear of missing out
What is missing?
tip us @boardofinno or @nickdemey
17 Why people pull
out their wallet:reasons
9. People want to look professional.
cc flickr Thompson C
Let’s start with the
first technique
Like a Boss
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10. People want to look professional.
Example: Chocolat App
If you don’t pay $49 the
font of this Mac text editor
will change to Comic Sans.
The horror.
11. People want to look professional.
Example: Windows Vista
You don’t want to be that manager/sales lady/... who
opens up “Home Basic” in a meeting, right?
vs
12. People want to look professional.
Example: Slideshare.net
The only reason why we
pay Slideshare $190/year
is that our decks wouldn’t
look like this...
ADS
13. People want to look professional.
Example: Slideshare.net
The only reason why we
pay Slideshare $190/year
is that our decks wouldn’t
look like this...
< but like this.
14. People want to look professional.
Example: Flickr.com
Some people pay $25/y
just to have the PRO badge.
and so on...
you get the message.
15. People want to belong to a group, something bigger.
cc flickr Natural-Heart
Be part of a Mob
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16. People want to belong to a group, something bigger.
Example:
Founderscard.com
A €495 membership to get
access to exclusive perks
for entrepreneurs.
You have to know
someone (referral code) to
get access. #smart
17. People want to belong to a group, something bigger.
Example: App.net
Would you pay to use
Twitter? Some do! App.net
offers a paid alternative.
But on twitter you’re a
user, here you’re a
member, starting at $5/m.
!
You share a common goal:
open ad-free social network
18. People want to belong to a group, something bigger.
Example: Kickstarter.com
You’re not a user, member
but a backer on kickstarter.
You pay (donate) money to
become part of a
movement.
For some the actual
product is optional. Being
part of the process is more
important.
19. To experience and discover new things
cc flickr dominiqueb
Mystery & Thrills
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20. To experience and discover new things
c - yanidel.com
Example: Zynga Farmville
What’s in the box? To
discover the contents
gamers could
spam 10 friends or
pay 20 Farm Coins
($10 = 55 Farm coins)
This is one of the most
lucrative ‘gambling’
techniques used in Free-
to-play games these days.
21. To experience and discover new things
Example: Carrot Todo app
This paid iOS app ($0.99)
has an attitude. It might
get mad at you, tease you,
and so on...
Very smart tactic to
differentiate the app from
the thousands of other
Todo apps.
Many in-app purchases are
available.
22. People hate to lose things.
“I own this Sh*t”
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23. People hate to lose things.
Example: Pinboard.in
Yahoo decide to close
down the free service
Delicious.
Pinboard quickly launched
a paid alternative to save
your bookmarks.
10$ - one time fee
24. Example: Gmail.com
When Gmail is full, you
don’t won’t to sort out
thousands of mails to see
what can be deleted. You
just pay.
!
Starting at 5$/y for 20Gig
People hate to lose things.
25. cc flickr alexnako
People love to complete a set when possible
Collection Completion
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26. cc flickr Natural-Heart
People love to complete a set when possible
Example: Fontshop.com
You might have enough
with 3 fonts version. (italic,
bold,...) but when there are
16 variations in total some
people will just buy them all.
Just to be sure and for the
sake of completeness.
27. cc flickr Natural-Heart
People love to complete a set when possible
Example: Humble Bundle
The pay-what-you-want
model is already smart but
in order to have all 9
games, the full package,
you have to pay more than
average.
!
An easy nudge to put more
money on the table.
29. cc flickr verbeeldingskr8
Able to control privacy
Example: Livestream.com
Remove your videos from
the public stream or the
ability to set a password
are Premium features.
!
$333/month.
30. cc flickr verbeeldingskr8
Able to control privacy
Example: Godaddy.com
Cheap domain names are
nice but if you want to
keep your registration info
private you pay extra on
top.
!
$9.90/y (without discount)
31. To speed things up
cc flickr scubabrett22
Harder, better, Faster!
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32. To speed things up
cc flickr scubabrett22
Example: Rapidshare.com
This file sharing services
limits the download speed
of free users. Parallel
downloads are also only
available for paid users.
!
€8.33/m
33. To speed things up
cc flickr scubabrett22
Example: Evernote
The files stored by
Premium members are
processed faster than free
members.
!
For €40/year people can
go Premium.
34. Let people be first/ focus on exclusivity
cc flickr dcmetroblogger
the VIP-treatment
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35. Let people be first/ focus on exclusivity
Example: Steam
Some gamers pay to play
unfinished games solely
for the right to experience
the game first.
Do note: It’s not a pre-sale.
36. Let people be first/ focus on exclusivity
Example: Plex Media App
A subscription on the plex
pass (starting €3.99/m)
gives users early access to
new features.
To iOS app itself costs
already $4.99.
37. Give users the right to tweak/ control
Push the buttons
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38. Give users the right to tweak/ control
Example: Yammer.com
In order to manage a large
user base or to change
specific settings many
services provide premium
paid features for admins.
!
Yammer: 3$/user/month
39. Give users the right to tweak/ control
Example: Appmakr.com
This app iphone builder
offers Premium users the
ability to add custom lines
of codes and to tweak the
HTML.
!
$79/app/month
40. . Like a Boss
. Be part of a Mob
. Mystery & Thrills
. “I own this Sh*t”
. Collection Completion
. Keeping secrets
. Harder, better, Faster!
. the VIP-treatment
. Push the buttons
. Just like me
. Serve me
. The clock is ticking
. Reduce guilt/ fairness
. Mine is bigger
. Show me the numbers
. Call me maybe?
. Fear of missing out
What is missing?
tip us @boardofinno or @nickdemey
17
You are halfway!reasons
42. Let user personalize their experience
Example: Wetransfer.com
This file transfer service
offers numerous options
to personalize the
branding & experience.
!
43. Let user personalize their experience
Example: Windows 7
As a bad example,
Windows 7 Starter edition
(the cheapest version)
didn’t allow customers to
change the desktop
background.
A bad decision that created
a lot of frustration.
44. People will always pay for convenience
Serve me
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45. People will always pay for convenience
Example: Shoeboxed.com
This app takes away the
hassle to keep track of
receipts & expenses. You
take a picture, the
scanning services does the
rest.
!
Starting at $9.95/m
46. People will always pay for convenience
Example: useSold.com
A newcomer in the field of
e-commerce. Just take a
photo of an item you want
to sell. They do the rest
(from price setting to
shipment).
!
They take a (secret)
margin on top of your
payout.
47. Add enough time pressure
The clock is ticking
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48. Add enough time pressure
Example:
Business Model Hub
The faster you joined this
online writing community
the lower entry ticket was.
The fee started at $24 and
rose gradually to $243.
49. Add enough time pressure
Example: iBood.com
One of the easiest tricks of
the book. Deals or
offerings that are limited
in time. iBood has 1 offer
available per day.
Take it or leave it.
50. People want to limit negative feelings.
Reduce guilt/ fairness
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51. People want to limit negative feelings.
cc flickr kenstein
Example: Godaddy.com
When buying domain
names (or other impulsive
products) people might
feel guilty. To reduce this
‘negative‘ feeling you could
link your product to
charity.
The “round up” approach is a
nice way to tackle this.
52. People want to limit negative feelings.
cc flickr kenstein
Example: iTunes
Many people still buy
music because it “feels
right”. They don’t think it’s
fair to download music via
torrents.
For some products it helps to
emphasize that “you did the
right thing.”
54. cc flickr gioxxswall
Some (men) like to brag or show off.
Example: I am Rich app
Remember this extreme
case? Several people
actually paid $999.99 to
have an app that does
nothing more than
showing a red diamond,
just to show off.
55. cc flickr gioxxswall
Some (men) like to brag or show off.
Example: ARGirl
There should be an app
category: “show off at
parties”. Many small paid
apps have only one goal.
Trying to impress friends
with the next (paid)
gimmick.
56. People like to get insights
cc flickr seenoevil
Show me the numbers
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57. People like to get insights
Example: Polar app
While this health tracking
app is free you have to pay
to have a better
understanding of the
figures.
!
$5 for 5min status check.
58. People like to get insights
Example: Runkeeper Elite
You can track your
workouts with Runkeeper
but to get detailed insights
in your performance you
have to upgrade.
!
$19,99/year
60. Let people communicate/ connect
Example: SinglesAroundMe
This app scans your
neighborhood for matches.
But the number of messages
you can send is limited.
!
Paid in-app upgrades are
available to continue the
conversation.
Up to $19.99 per package.
61. Let people communicate/ connect
Example: Facebook.com
Facebook is experimenting
with paid conversations (if
you want to message
strangers).
!
$1 to reach the inbox
62. People want to get notified
c - yanidel.com
Fear of missing out
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63. People want to get notified
c - yanidel.com
Example: unfollowed.me
Would you pay $4.99 to
get notified when people
unfollow you on twitter?
This paid service believes
you will!
64. People want to get notified
c - yanidel.com
Example: Netvibes.com
This social media
monitoring services has
premium alert features to
get notifications & alerts.
!
The service ain’t cheap:
$499/month
65. People want to get notified
c - yanidel.com
Example: TomTom GPS
An expensive in-app
purchase of €29.90 to
have access to 1 year of
traffic alerts.
This update is the #1 paid
feature for this app (on top
of the 1 time €89.99 fee to
install the car nav app).