Archives for February 2024

1. Subscription Model
   • Example: A streaming service charges $10/month per subscriber. If the cost to serve each subscriber is $4/month, the profit per subscriber is $6/month.
   • Real World Company: Netflix.
   • Revenue: Netflix reported revenue of approximately $29.7 billion in 2022.
2. Freemium Model
   • Example: A productivity app offers basic features for free and charges $5/month for premium features. Assuming 1000 users with 10% upgrading, the revenue is $500/month.
   • Real World Company: Spotify.
   • Revenue: Spotify reported revenue of approximately €9.67 billion ($10.9 billion USD) in 2022.
3. E-commerce Model
   • Example: An online store sells a product for $50 with a COGS of $30. The profit per product sold is $20.
   • Real World Company: Amazon.
   • Revenue: Amazon reported revenue of approximately $514 billion in 2022.
4. Affiliate Marketing Model
   • Example: A blog earns $10 for each sale through its affiliate link, with a conversion rate of 2% from 100 clicks, earning $20.
   • Real World Company: Wirecutter (A New York Times Company).
   • Revenue: Specific revenue for Wirecutter is not publicly disclosed, but it operates on affiliate marketing revenue.
5. Ad-based Model
   • Example: A website earns $0.50 per 1000 views (CPM). With 500,000 views, the revenue is $250/month.
   • Real World Company: Google (primarily through AdSense).
   • Revenue: Alphabet (Google’s parent company) reported revenue of approximately $282.8 billion in 2022, with a significant portion from advertising.
6. SaaS (Software as a Service) Model
   • Example: A tool charges $100/month with a COGS of $20/month. The profit per customer per month is $80.
   • Real World Company: Salesforce.
   • Revenue: Salesforce reported revenue of approximately $26.5 billion in 2022.
7. Dropshipping Model
   • Example: A store sells a product for $20, purchases it for $10, with a $10 profit per sale.
   • Real World Company: Wayfair.
   • Revenue: Wayfair reported revenue of approximately $13.7 billion in 2022.
8. Consulting Services Model
   • Example: A consultant charges $200/hour with costs of $50/hour. The profit per hour is $150.
   • Real World Company: McKinsey & Company.
   • Revenue: McKinsey reported revenue of approximately $10 billion in 2022.
9. Franchising Model
   • Example: A franchisee pays $10,000 upfront plus 5% of monthly sales of $20,000, making $7,000 after fees.
   • Real World Company: McDonald’s.
   • Revenue: McDonald’s reported revenue of approximately $23.2 billion in 2022.
10. Digital Products Model
    • Example: An e-book sold for $30 with a $1 transaction fee has a $29 profit.
    • Real World Company: Adobe.
    • Revenue: Adobe reported revenue of approximately $15.79 billion in 2022.
11. Marketplace Model
    • Example: An online marketplace takes a 10% commission on a $500 transaction, earning $50.
    • Real World Company: Etsy.
    • Revenue: Etsy reported revenue of approximately $2.3 billion in 2022.
12. Direct Sales Model
    • Example: A distributor buys products at a 25% discount and sells them at retail price, making $10 on a $40 product.
    • Real World Company: Amway.
    • Revenue: Amway reported revenue of $8.5 billion in 2022.
13. Crowdsourcing Model
    • Example: A platform takes a 5% fee on a $100,000 project, earning $5,000.
    • Real World Company: Kickstarter.
    • Revenue: Kickstarter’s revenue is not publicly detailed but operates on this commission model.

 

1. Subscription Model
2. Freemium Model
3. E-commerce Model
4. Affiliate Marketing Model
5. Ad-based Model
6. SaaS (Software as a Service) Model
7. Dropshipping Model
8. Consulting Services Model
9. Franchising Model
10. Digital Products Model
11. Marketplace Model
12. Direct Sales Model
13. Crowdsourcing Model
14. Data Monetization Model
15. Economy Sharing Model

Getting off caffeine these last few weeks has resulted in me sleeping earlier, and therefore waking up earlier.

I’ve always preferred being a night owl, but lately I’m waking up at 6am and just starting my day.

Originally I used Twitter as a place to post by fully-scratched out to-do lists…..clearly that wasn’t the right way to use it 😂

So instead I might try doing it here to hold myself accountable.

The best place for me to work is: DIFFERENT PLACES!

I’m so damn lazy, and if I work in one place for too long I somehow just goof off.

In my most optimal state I have several places to work such as:

• Home Office
• Living Room Table
• Library
• Coffee Shop
• WeWork (don’t have one anymore but I loved WeWorks)

I always have to switch it up for some reason.

I tried the Apple Vision Pro….and yeah it’s way better than any other headset I’ve had!

I’ve had several versions over the years and this definitely blows them all away.

Apple famously doesn’t call this “Virtual Reality” and I 100% understand why. While technnnicalllllly this is a VR headset strapped on your face, it feels so much different!

It’s so different from VR in many ways:

• VR: You need your own dedicated space devoid of obstacles you might hit. I usually use my Quest VR headset in my garage for this reason.
• Apple: It’s meant to be worn around and you’re aware of your surroundings.
• VR: You can always see the pixels, taking you out of the experience.
• Apple: The resolution is like….REALISTIC clear. You can’t see pixels.
• VR: You can occasionally do “passthrough” which lets you see the world around you, but it’s not good.
• Apple: Passthrough is part of the whole experience, and you can use a knob to “tune out the world” as much as you want. You can always see through to real life, but if you turn the knob it darkens everything in the real world not in your immediate vicinity, or you can turn it all the way down and block out the entire real world and it feels like you’re perched uptop a mountain.

In 2019 my friend Sam Parr punched and broke my TV while playing a boxing game in my living room….this was one of the dangers of VR. To be fair the “Guardian System” Meta developed for Quest was pretty damn good, but the way Apple Vision Pro works is so much more integrated with the real world that this almost isn’t even a problem anymore.

This feels like an iPhone 1 moments, where everyone saw the potential….but it really took off with the iPhone 3.