Show how the business makes money, gets paid, reaches customers, and grows its margins.

What is the business model?

• • Bundling
  • Freemium + Advertising
  • Open Source
  • Subscription
  • Platform
  • Marketplace

Show

1. 1. Customer acquisition costs.
   2. How much you make from a customer.
   3. A breakdown of your costs per unit or monthly expenses.
   4. How you reach the customer.
   5. Key Performance Indicators.

Tips

• 1. Explain how you will make revenue
  2. Explain the growth engine behind it
  3. Use known business models to describe it (subscription, transaction, freemium, etc.)
  4. Appropriate metrics (Monthly Recurring Revenue, Gross Merchandise Value, Monthly Active Users, etc.)
  5. Show your key revenue streams.
  6. Show your profit margins.
  7. Show existing sales cycles and volume of sales
  8. Show when you get paid, and how often, and trigger events and fees.

Common Mistakes

• • The business model is completely missing from the pitch.
  • Showing more than two ways how to monetize makes you seem unfocused.
  • Focusing too much on the future and failing to demonstrate the latest achievements.

Examples