By Guiping Lin, Wei Wei, Wuxiang Zhu

This booklet often specializes in defining revenue types, on what number major sorts of revenue versions there are, how revenue types can swap an organization, and the way to tailor a revenue version to the desires of a undeniable corporation. during this context, revenue types are labeled as fixed-income, remaining-profit and profit-sharing, admission, toll, parking, gasoline and sharing charges, revenue assets, client pricing, public sale, mixed pricing, and so forth. The common sense at the back of most of these revenue versions could be analyzed intimately and various micro-cases can be brought. all the micro-cases mentioned are the simplest revenue version practices utilized by impressive firms, in most cases from China and america (including HomeAway, Priceline, Tencent, Sina, Google, the Voice of China, CSPN and so on). those types might be complemented by way of a wealth of figures and extra instruments to assist readers greater comprehend the main of revenue versions. As such, the booklet not just explains “why” marketers most well liked to use a selected form of revenue version and never others, but additionally solutions “how” they derived that model.

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Key resource capacities under a business model are determined in two ways. The first approach is based on other elements of a business model. For instance, different business systems require varied key resource capacities, and so do different profit models. Case study: Resource capacity support behind Dell As a world-renowned multinational, the operating costs of Dell in China only account for 9 % of total revenue, whereas the same indicator of other multinationals reaches 20–22 %. Dell’s low costs are attributable to their three resource capacities.

This requires us to design the profit model of an enterprise by considering how the sources of its income and expenditure are distributed among which stakeholders. We can make an analysis matrix with two dimensions: expenditure and source of income. The horizontal direction indicates the stakeholders contributing income to the enterprise, including direct customers, direct customers and third-party customers. The vertical direction indicates the stakeholders bearing relevant costs, including the enterprise, enterprise and third-party partners, third-party partners, and zero variable cost.

If we expand our perspective to cover Google’s entire business model, it can be said that they determine the sources of income and expenditure of each business line by differentiating stakeholders. While establishing a solid profit model coalition by centering on the stakeholders of different businesses, the key enterprises obtain continuous profits in different transaction forms with each other while greatly ensuring their own interests. This is the true story behind Google’s seemingly free, but successful profit model.

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