PHASE 6: REVENUE MODEL

Align your pricing model with the value your customers expect to gain from your products.

 

Choosing revenue models that align with buyer preferences will increase your ability to win. More than any other part of pricing, your revenue model is the way you communicate to your customers exactly what they are purchasing. And what they are purchasing should align to the way that they receive value from your product. Use an outward-in approach to define value from your customer’s point of view as opposed to an inward-out cost approach. Choosing a revenue model that is in alignment with customer value will expedite your sales significantly. Developing and innovative new revenue model will make you the industry disruptor.

Rapid Diagnostic

1. You have defined which revenue model you and your competitors use (i.e. Perpetual ownership, Software (upfront fee + maintenance), Rental, SaaS, Variable, Pay as You Go, 2-part Tariff (fixed fee + variable component), Auction, Freemium, Fixed ROI (pay a portion of the value delivered)).

2. You have quantified how frequently your customers consume your product.

3. You are aware and have documented the revenue model of each competitor in each market.

4. Your customers tolerable of unexpected costs.

5. Recurring revenue streams are critical to your business.

6. You have determined what type of budget your clients use to pay for your product. (CapEx, OpEx)

7. You are aware of how buyers prefer to pay (lump sum, reoccurring, per transaction).

8. Your buyers are willing to pay an adjustable fee depending on the value they receive over time.

9. Your revenue model aligns with your business objectives.

10. Your revenue model is disruptive in the market.

Deliverables

• Revenue Model Analysis

• Competitor Revenue Models

• Revenue Model Options

• Revenue Model Evaluation Criteria

• Revenue Model Scoring

Sales Strategy
How a Global Sales Executive Effectively Manages a Disrupted Partner Ecosystem
Well-established tech companies have typically developed a large, multi-layer partner ecosystem that they rely on. For a sales leader in this environment, problem-solving, and having shared responsibilities with these channel partners is the only way to succeed in moving the...
Read More
Sales Strategy
Deal Optimization—A Key to Business Survival During COVID-19
Even in normal times – and these are not normal times – deal optimization is an opportunity too-frequently overlooked by revenue and sales leaders. CEOs and CFOs see the negative impacts of poorly optimized deals on the P&L – when...
Read More
Sales Strategy
Adapting Your Go-To-Market During a Crisis: 7 Steps to Mitigate Revenue Impact
Over the last week, we have seen the effects of the COVID-19 pandemic on the market, businesses, and communities. During these unpredictable times, one thing is certain; we cannot control these events, but we can control how we react.   In today’s...
Read More
Sales Strategy
Lean on Your Community in Times of Uncertainty
We are facing unprecedented challenges with the COVID-19 outbreak, but we are all in this together. SBI is committed to helping you:   Connect with your community – Whether you’re a CEO or leader in sales, marketing, or customer success, you have...
Read More