Week 10 of Creative Founder

Another week.

Monday presentation feedback for Benefitly

• A clearer state of value proposition and MVP
• Talk more about why because and so what
• When presenting, be more professional but always smile and excited

Wednesday, Dan Olsen, the author of The Lean Product Playbook

Revenue Model

Revenue Model is how the enterprise make money.

Sketchnote of Business Model Generation

What is my hypothesis?

I think our customers, the elderly people, especially with low income, will be willing to use our service for free (freemium), then pay a little more to upgrade to our membership to get more benefits. Why?

In Business Model Generation, there are two types of payments, one time payment or ongoing payment .In Don’t Just Roll The Dice, the author mentioned,

“Paying lots of small amounts is psychologically easier than paying one large amount.”

Since we are providing benefits, it is definitely more suitable with ongoing payment.

“If we shift our prices from $100 to $150 then most people won’t notice, and of those who do notice very few will care.”

So my idea is to use subscription fee mode. The user can create an account and subscribe our service for free first, then they can upgrade to higher level with low prices monthly to get more benefits, and cheaper when manually. Freemium model, where a small number of paying customers subsidize the majority of freeloaders. The user get to our service because they want to have benefits, if we let them pay first, it doesn’t make sense, so we should do freemium, then increase the price slowly, they won’t mind, if they do, try something else.

Don’t Just Roll The Dice Chapter 1