Revenue Models & Pricing

Objectives

This section on revenue models & pricing provides resources and materials to support the following learning objectives:

1. Develop and evaluate strategic choices between different revenue models as one important aspect of a business model.
2. Understand the benchmarks for price setting: customer value, competition, cost.
3. Design a pricing model along several dimensions.
4. Consider pricing principles implied by behavioral economics and psychology.
5. Learn about tools to measure willingness-to-pay.

Types of Revenue Models

• List by the Founder Institute
• 9 Revenue models explained in the Startup School of YCombinator:
  

Strategic Pricing Considerations for Startups

• Startup Pricing 101 by Startup School of YCombinator:
  
• Product Pricing for Startups
• Sequoia’s Pricing Advice (including a nice worksheet)
• Pricing Strategies for B-to-B Startups

Economics of Pricing

• Pricing Models, Strategies, Tactics (for Saas and beyond)
• Comprehensive Pricing Framework (for SaaS and beyond)

• Behaviorial Pricing Tactics
• Pricing on Multisided Plattforms (vs Product or Reseller Plattforms)

Tools to Measure Willingness-to-pay

• Survey-based Methods 1
• Survey-based Methods 2
• A/B Price Testing 1
• A/B Price Testing 2
• Cautionary Notes about A/B Price Testing for B-to-B
• A/B Sample Size Calculator
• Multivariate, A/B/n Designs
• Advanced stuff on A/B testing: Peeking, Sequential, Bayesian