Thursday, June 6, 2013

Revenue Modeling, 101...continued...and continued some more...


When I read about the project based revenue model in Four Revenue Models and Examples for Small Businesses, from www.plantostart.com this first thing I thought about was the episode of How I Met Your Mother, where Ted Mosbey announces in a wedding toast that his new company, Mosbius Designs, has failed.  Mosbius Designs employed a project based revenue model.  His revenue was generated by lining up on single project after another.  As the article reinforces, he was selling his expertise, and that limited his opportunity to make Mosbius Designs scalable.  He could only work on so many projects at one time.  Further, he also had to pick up the dreaded phone and spend much time pitching his business, over and over again, leaving less time to actually do the work he was pitching.  Ultimately, his business failed and he became a sensation in the Netherland…or Sweden…maybe it was Switzerland, or Norway, I can’t remember, but I do know it was because of auto-tune (see this video…you are welcome… http://www.youtube.com/watch?v=VYyDDkfOndI )

Now I’m no Ted Mosbey and I don’t think the project based revenue model will be a good fit for CKF as a main component for my revenue model, but this did get me thinking about where project based revenue modeling could fit into my business.  Honestly, I couldn’t think of a single idea so maybe this is one that I get to keep off the list, which is good because as I said before, I’m no Ted Mosbey and I don’t want CKF to fail like Mosbius Designs did. 

So that’s it for this week.  Join me next Tuesday as my research into revenue modeling continues with my final topic for this part of my revenue modeling series, services revenue modeling.  Until, have a great weekend, and enjoy Ted’s toast…

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