Here is what most people do. They take a look at the 10, or so, revenue models that exist and pick one that they think provides the business the best return. In reality, writes Martin Zwilling, Founder and CEO of Startup Professionals “Your challenge is to set the right price to match value perceived by the customer, with a fair return for you”. To do that effectively, however, it’s necessary to:
1. focus on this aspect of you business model early
2. understand your product’s interaction between pricing and marketing
3. get out of the building – do your research with real customers
You can read his full article here.