Skip to main content

The right business model for your product

How would you decide what is the best business model for your product?

Deciding on the right business model is very important for the product. It does not necessarily mean what is the price of your product.

There could be no price for your product - though that is a myth. For example, we think google or Facebook is free. However, we are never the customers for Google or Facebook. It is the advertisers that are its customers.

What we need to figure out when we decide on a business model are as follows:
  • Who is my target audience?
  • Who is my customer
  • What is the price.
  • How is the support model going to work
  • Who are my partners

While we do not absolutely need to price a product, we need to understand how we would make money. For example Open ERP does not price its product. However, its product is not the ERP software but really the hosting, service and training that it offers.

While pricing is an important part, what is more important is in realising who is your real customer and what is your real product.

You might not have your product till you are working on your by-product - which is the software that most of the IT product managers like me are working on.

Check out the following to help you out:

Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers

Lean Canvas

Comments

Popular posts from this blog

Counterfiet goods and the fledgeling e-commerce market places

India has a nascent and a very active market place. With good interest, the right climate for growth and right product mix, the indian retail marketplace seems to be going places. However, there are some alarming signals that seem to be ignored for growth that have a good chance of being dangerous to all the stakeholders involved. The issue I am talking about is the sale of counterfeit goods in all the indian market places. India has not had a history of strong Intellectual property rights. This time it is getting messier. The Indian marketplace model is very interesting and suits well to a country as diverse as India. The market place model floated by all the major e-railers suits the fact that the seller and the buyer can be connected for serving the needs for every day goods that are not necessarily covered by IP laws. India needs more effective IP laws since it is struggling with some products like traditional indian products that cannot be covered by IP versus modern produc...

Organizational growth and turn over

Organisations need to grow. However, they should not grow for the sake of growth. That would be a virus. Orgs should not grow to survive as well. Orgs should grow with a purpose.

How to handle a cranky team member

Scenario: You have been working on a team where a team member has been throwing tantrums on every decision made. He has been involved in some of them but claims to not be engaged. He keeps complaining of not being kept in loop, does not react positively to feedback and generally shirks responsibility. These are symptoms that something else is wrong. How do you go about managing this scenario?