Revenue Models

Question 1

Premium

Answer 1

earn money on payment from user when they download the app.

pros: simple revenue model
cons: depends on a good app, or low price

Question 2

Freemium

Answer 2

revenue based on features, functions and virtual goods(commercial)

pro: userdriven revenue stream
cons: expose large segment of users to a service

Question 3

Referral

Answer 3

referring users to third parties for purchases:

pro: low cost with platform maintenance
cons: 80/20 rule (80% of revenue from 20% of the users)

Question 4

Servitization

Answer 4

revenue from charging for extra services to use core product

pro: alternative revenue to boost income
cons: rely on appeal of core product

Question 5

subscription

Answer 5

charging users for constant access to core product(newspaper)

pro: stable revenue stream
cons: needs sustainable interest

Question 6

retail

Answer 6

charging users for purchasing product via the mobile app.

pro: predictable revenue stream
con: subjected to appealing product line

Question 7

promotion

Answer 7

directing users to purchase products for offline partners via the app