Situation: The CEO of a start-up software company focuses on connecting potential parties to business opportunities. Early signs are that this offering has legs and potential parties have responded positively. The critical question for the CEO is how best to turn interest into revenue. How to you monetize your business model?
Advice from the CEOs:
- The first step is to segment the audience and determine both the potential for each segment to both benefit from and fund the service that they receive.
- Individual contributors may not have a lot of financial resources but may be interested in participating as employees or providers of expertise or services. They also may know others and can spread the word.
- Collaborating organizations may be able to offer both funding and services to help build and sustain momentum.
- Companies have funds to support the effort provided they see value to their bottom lines as a result.
- Suggest a fee or contribution for services from companies who will benefit. Provide guidelines or a sliding scale of fees depending upon duration of services provided to the company. Make it clear that moneys earned will be reinvested to increase the range and depth of services offered.
- Suggest a sliding fee scale for individual contributors based on the financial benefit that they receive.
- For companies and collaborating organizations offer levels of membership or recognition for support based on benefit received.
- For all segments – start with small, timed fees and increase these as the model proves its benefit to them.