Revenue from where?

It is probably hard to have any innovation in the way of "collecting money" on the Internet. It only means collecting money from consumers and collecting money from enterprises, and the value of the services you provide to them is relatively large. So the question is how much to close, and what pipeline to close. When the four segments, Customer Segments, Value Propositions, Customer Relations and Channels, etc. are gradually set, your revenue potential is probably fixed, and the rest is about how you "mined" the gold mine.

It is probably hard to have any innovation in the way of "collecting money" on the Internet. It only means collecting money from consumers and collecting money from enterprises, and the value of the services you provide to them is relatively large. So the question is how much to close, and what pipeline to close.

Pricing Strategy

Behind the collection is actually "pricing strategy", which is the most easy start-up "lost" place.

The most commonly heard is "X is very profitable, I sell cheaper than he won," this price-cutting myth. The reason why it is a myth rather than a tactic is that such an idea takes into account only the first leg of the game, but the next round, when X decided to compete with you with huge resources and price cuts, Any long-term competitive advantage. So if a price cut is to be a strategy, it will inevitably have to match the strengths of other blocks in the business model, such as access, critical resources, and cost advantages.

Another myth is to calculate the price from its own costs - because this thing takes 50 yuan to produce, so to sell 100 yuan. Such a pricing method completely ignores the customer's willingness to pay, otherwise the product will not be sold or the producer surplus will be lost in vain. Apple's iPad costs only $ 200, even if they sell $ 400, Exaggerated 50%, but they eventually decided to sell a $ 500, because Apple knows iPad value to customers is far more than that price.

The advantage is Apple is a big company, the price is difficult to change once called out, but you are a small company, in fact more flexible pricing, especially in the early stages of the product, you should try a variety of different prices, to draw customers The willingness to pay.

Charged pipe

Price, charging pipeline also need to try many. There are many ways to charge on the Internet, including credit card, ATM transfer, cash on delivery, super charge, third party payment, telecom bill, two way news, point card, In-App Purchase and so on. You have to base your pricing and target customers on how to integrate and find the most appropriate combination of charging methods - most sites do not offer only one method of charging, but when you offer too many methods of charging, it is also possible for the client Know what to do Each payment method has a different gold cost and risk (for example, credit card stop payment), you must also continue to optimize to improve their margins.

Conversion rate → lifetime contribution

Ultimately, validating your pricing strategy and charging pipeline is validated by paid conversion rates, buy-back rates, customer prices, and hence the resulting Life-Time Value (LTV). If these metrics are improving, then the adjustment you made earlier is the right direction. If they are recession, then you have to consider to cancel this adjustment. So keep going on until you can not raise LTV anyway - in other words, there is no end of the day.