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Sources of Income

The document outlines various sources of income for businesses, emphasizing the importance of cash flow for sustainability, especially for small businesses. It details methods such as asset sales, service usage fees, subscriptions, rentals, licensing, commissions, and advertising as potential revenue streams. The conclusion highlights the significance of understanding business models and using the Canvas methodology to create and capture value effectively.
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0% found this document useful (0 votes)
22 views4 pages

Sources of Income

The document outlines various sources of income for businesses, emphasizing the importance of cash flow for sustainability, especially for small businesses. It details methods such as asset sales, service usage fees, subscriptions, rentals, licensing, commissions, and advertising as potential revenue streams. The conclusion highlights the significance of understanding business models and using the Canvas methodology to create and capture value effectively.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Sources of income

It identifies what value our customers are willing to pay for


our products or services, in order to have a global view of which
which groups are more profitable and which are not

The cash flow is more important than mom,


use the gurus of innovation and entrepreneurship. It sounds cruel and ruthless,
but it may have some truth in the business context. This resource (the
cash flow), is very important for all companies; even much more
for small businesses, which must pay payroll and run with the
expenses of the normal operation of your business.

But, how can we capture money by taking advantage of our proposal?


value? There are some established forms:

1. Sale of assets: It is the most common way. You have something and you sell it;
What you receive in exchange ($) is the payment method and the income flow.

2. For use: Paying for service use is the other way to raise money,
the more you consume the service, the more you pay; of course, you pay later
of consuming the service. Public services are an example.

3.Subscription: When you pay to watch movies on Netflix, or to download


all the images you want from a site by paying a fee, you have one
subscription. The key to this model is: 'when you pay, you have access.'
at your service.

4. Rent: To have access to use an asset (such as a house) for a


limited time period we are talking about a rental. It's a case
very common in this type of goods, in some other places it is more
usual for vehicle use.

Licensing: Grant permission for someone else to use something that was built.
based on our knowledge, it is usually another source of income.
example, when we license the use of a computer program that
we have carried out, or also by allowing an advertisement to use
a song that we have composed.
6. The collection of commissions: If you charge commissions for transactions that
they use your business model as a channel, do you have an example of that. Another
clear example, credit cards that charge a fee to the
stores that use them as a payment method.

7. Advertising: If you have banners on your website or in your store.


Both are examples of using advertising as a source of income, the
the key is that the potential interested parties can see them, and in a
considerable amount (to be able to charge more).

Depending on our business model, combining these forms can


bring good results for your service.

1) If the customer is the heart of the business model, the flow of income is
what will keep it alive. For new projects, the goal will be
identify sources of income, while for existing projects the
The goal will be to consider if the way they are being generated is the best.
possible.

Always start from the customer segments that you have identified so far.
reflect on who are the ones willing to pay more for the
different aspects of your service. This does not mean that the segments
less profitable ones cannot become so (that's why niches exist)
from the market), it will simply give you an idea of what you can offer to each
one, given their payment capacity.

Alex Osterwalder and Yves Pigneur share with us some ways to


generate income

For the sale of goods or services.

Charging a fee for the use of a service; the more you use, the more you pay.

Charging a subscription or membership for the indefinite use of a service


for a period.

To lend, rent, or lease something. It's interesting because it allows for the
people use a good without having to invest in its acquisition.

License the use, not the ownership, of a product protected by rights of


intellectual property.
Charge commission for Brokerage. If you have an intermediation service
between two or more parties, you can take a percentage of the transactions
carried out between both. For example, Mercado Libre.

Charge for advertising spaces.

What is common to all of them is the need to define your price.


We understand that this is not always easy; there are experts and an entire literature on it.
back to the topic. However, what we can recommend to you when creating your Canvas
Do you remember that you are making a prototype, that you dare to propose
a price or price range and that you ask your work team or to
different people what they think about the amount you have established. With this
you will have an idea of what range the price should fluctuate that people
I would pay for your offer.

Keep in mind that 'prices speak' and communicate related information.


to the position of the product or service relative to that of the competition. For
For example, a high price is typically associated with quality or exclusivity;
while a price that is too low might raise doubts about the
performance of what you offer.

CONCLUSION

a business model describes the fundamentals of how a


organization creates, develops and captures value.

The main recommendation is to multiply the knowledge of this.


methodology to implement it with a broader scope

The methodology can be complemented with other methods and


tools used for idea generation, based on
with knowledge we will be able to develop the ability to innovate on this
model

The Canvas methodology consists of completing the 9 proposed modules.


by the author, all of them interrelated and explaining the operation of
the company to generate income and make the business profitable, must
analyze each of the steps, to have a global view of the business.
bibliographies

http://www.dineroenimagen.com/2012-11-07/10451

http://www.URL provided is not text for translation.

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