An idea only becomes a business if it generates revenue. There are several models, and the one you pick shapes everything: cash flow, the customer relationship and growth.
The main models
- One-off sale: the customer pays for each product or job (simple, but you have to win the revenue again every time).
- Subscription: recurring payment (predictable revenue, ideal for cash flow).
- Freemium: free at the basic level, paid for the extras.
- Commission: a percentage of transactions (marketplace).
- Packages / à la carte: price tiers depending on the level of service.
Setting a first price
Three approaches work together: cost (the floor price so you don’t lose money), the market (what competitors charge) and value (what the customer saves or earns thanks to you).
For example: a service costs you 30 € to deliver, competitors sell it at 80 €, and it earns the customer 300 €. A price of 79 € makes sense: profitable, in line with the market, and well below the perceived value. Charging too little is not a gift to the customer: it is often read as a signal of poor quality.
Key takeaway: pick a revenue model (one-off, subscription, freemium, commission) and set the price by combining cost, market and perceived value.