1. Business Plan Preparation Revenue Model
Frank Moyes Leeds College of Business
University of Colorado Boulder, Colorado
Revenue Model

2. Tonight Marketing Strategy Revenue Model
In the Fire – Industry Analysis & Model Company
Hand-in
10 Call Reports
Competitive matrix
Model company description
Marketing Strategy

3. Next Week Operations Plan Development Plan Supply chain Walk an order
One Button Business Plan
Interim Peer Evaluations
Review status of plans
Marketing Strategy

4. Two Approaches Top down – market penetration & timing
Bottom up – pipeline, revenue by customer
Revenue Model

5. Revenue Drivers Depends on market Examples Market penetration
Market size & growth
Price & discount
Capacity utilization rate
Sales cycle
Lead time
Response rate
Churn rate
How measure?
Revenue Model

6. Revenue Model (Bottom-up)
Identify specific customers
Identify decision maker
Determine
Annual purchases today & future
Who purchase from & level of satisfaction
What do you need to do to get an order?
If you meet the criteria, how much business can you expect?
Revenue Model

7. What is a Revenue Model?
Market potential - number of customers, transactions or units, purchases
Size & growth
Market share - penetration rate
Product/Services offered
Roll-out strategy
Range & mix
New Products/Services
Obsolescence
Frequency of purchase – per day/week/month
Capacity Utilization – per time period, event
Prices
Price per customer, transaction or unit
Average revenue per customer or transaction
Channel strategy - discount
Revenue Model

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