give the basics away, charge for the powerful tier; convert enough free users and it compounds. Slack, Zoom, Spotify, Alphabet.
The core idea
give the basics away, charge for the powerful tier; convert enough free users and it compounds. Slack, Zoom, Spotify, Alphabet.
Connected
Business Model
Business ModelAdd-on
a lean core price, with the real margin in the extras customers add on. Ryanair,
Business Model
Business ModelAll-you-can-use / Flat-rate
one price for unlimited use; a bet that average consumption stays below the fee.
Business Model
Business ModelPay-per-use
charge only for what's consumed, aligning cost to value. AWS, Twilio, utilities.
Business Model
Business ModelOutcome / Performance-based
sell the result, not the tool; get paid when the customer's goal lands. ad netwo
Business Model
Business ModelRazor-and-blade
sell the platform cheap, profit on the consumables (or the reverse). printers/in
Business Model
Business ModelRobin Hood
charge the high end more to subsidize serving the low end; widen the market with