Making Money with Your Business Model
In This Chapter
Building a profitable revenue model
Discovering why everyone wants recurring revenue
Creating a meaningful cost advantage
After you identify an attractive market for your product and have a plan to market it, you’re ready to figure out how to make money with it. Even with an outstanding market niche and a stellar marketing process, you have to sell your product for a handsome profit in order to have a great business model. Let’s face it: Selling something for little or no profit is easy to do, but trading dollars doesn’t make for a great model. In this chapter, I tell you how to maximize the profitability of your business model.
Building a Profitable Revenue Model
At the core of a great business model is the ability to generate superior profits. In order to generate the superior profits, you need to create a profitable revenue model. A profitable revenue model has two components:
Your revenue model should generate high gross margins.
The total gross margin generated needs to exceed your operational or overhead cost. ...