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BMG RevenueStreams & Cost
StructureGBA 171STEM Business Honors I
Michael A. Pope, ProfessorSTEM Path to the MBA
September 21, 21!
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STEM Path to the MBA 2
Project Alpha Grading
Presentation Pro"essionalism #1$%& Appearance,
Time, E'e (ontact, Member In)ol)ement (ommunication #1!$%& (lear, (oncise,
*+A
(an)as (omplete #1$%
(ontent #!$%
esearch-E)ience #1!$%
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Project Alpha Grading
Appearance& Business /ormal Men& Suit #charcoal, na)' or 0ra'%, shirt #hite,
ecru, or li0ht blue%, socs that match suit color,blac or bron shoes, belt that matches shoe color,
soli or subtle pattern tie 3omen& Suit #charcoal, na)' or 0ra'% or contrastin04acet an sirt5 hite, o6hite, solicolor orpastel blouse5 simple 4eelr', neutral hosier'
The hole 0roup ill be penali8e "or an' membernot resse appropriatel'.
I" 'ou ant to be taen seriousl' in the businessorl, ress appropriatel'
STEM Path to the MBA 9
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:ame o" ;epartment or Pro0ram here
3hat capacit' o m' customers ha)e to pa'> Ho are the' currentl' pa'in0>
Ho oul the' pre"er to pa'>
Ho much oes each e)enue Stream
contribute to o)erall re)enues>
e?uires out o" the builin0 or irectl' ith'our customer se0ments
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Revenue Streams
STEM Path to the MBA @
To e' ?uestions
1. 3hat are m' e)enue Streams> Strate0'
use to 0enerate cash "rom each (ustomerSe0ment.
2. 3ithin the e)enue Streams, ho o I pricethe prouct> Tactical ecision on price in
each (ustomer Se0ment.
Pricin0 #tactical% "ollos the e)enue Streams#strate0ic%
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Revenue Streams
STEM Path to the MBA
1. 3hat is a e)enue Stream>The strate0' that the compan' uses to
0enerate cash "rom each customer
se0ment a's to char0e
2. 3hat is the Pricin0 Moel>
The tactics that 'ou use to set the pricein each customer se0ment ho muchto char0e
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Revenue Streams
STEM Path to the MBA 1
ECample& e)enue Streams )s Pricin0Moel
1. 1! sales reps, 27 cities #e)enueStreams%
2. (ost #D% marup#D9% F D12#Pricin0 Moel%
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Revenue Streams
STEM Path to the MBA 11
Several ways to generate Revenue Streams:
Asset Sales onership ri0ht, e.0. /or
sa0e /ees proportional to usa0e, e.0. cell phones,utilities
Subscription /ees continuous access to ser)ice, e.0.:etiC
enin0-entin0-easin0 temporar' access, e.0.apartment, cars
icensin0 use o" IP, e.0. so"tare, :ASA technolo0' Broera0e brin0 to0ether to parties, e.0. real estate
A)ertisin0 Multisie marets, i.e. users an pa'ersare i6erent, e.0. Goo0le
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Revenue Streams
STEM Path to the MBA 12
Aitional 3eb-mobile resources Referral revenue& pa'ments "or re"errin0
customers to other ebsites or proucts
Aliate revenue& JnerKs "ees orcommissions "or irectin0 customers tosites
Email list rentals& subscription-membership
sites rent email lists to a)ertiser partners Back-end oers& aon sales "rom other
companies as part o" their customerre0istration-purchase conJrmation
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Revenue Streams
STEM Path to the MBA 19
Pricin0 Mechanisms
1./iCe Menu Pricin0 PreeJne prices base on static )ariables (ustomer Se0mentepenent
ist Price
Prouct /eature ;epenent Lalue price
Lolume Price
2.;'namic Pricin0 Price chan0e base on Maret (onitions
:e0otiation #bar0ainin0%
iel Mana0ement, e.0. airlines, hotels
ealtime Marets
Auctions
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Revenue Streams
STEM Path to the MBA 1
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