charge only for what's consumed, aligning cost to value. AWS, Twilio, utilities.
The core idea
charge only for what's consumed, aligning cost to value. AWS, Twilio, utilities.
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 ModelFreemium
give the basics away, charge for the powerful tier; convert enough free users an
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