Revenue Model – Angry Birds

Angry Birds is a puzzle solving game create by RovioEntertainment Ltd. and has more than 200mn active monthly players.

REVENUE MODELS

Freemium – Angry Birds is one of the best examples of a game monetizing through this model. Players can start playing the game for free and the ones who get committed to it (around 5%) end up buying premium features in the app. Rovio does a great job of keeping users interested and engaged through new versions, upgrades and features for users.

Merchandise Sales – Angry Birds has been able to monetize it’s characters through sales of branded merchandise. Some products include Angry Birds iphone covers, t-shirts, lunch-boxes and so on. The sales strategy is a mix of direct sales and other models like franchising and licensing.

Advertising – The game also makes a lot of money in it’s free version through advertising. By not selling the game, as is the case with a lot of games, Rovio is able to reduce the risk of piracy as well as users can start playing for free.

Revenue Model – Quora (Q&A Portal)

Quora is a platform for users to ask and answer questions about anything. All content uploaded by users is vetted for quality, relevance and structure. It is well funded and has raised over $160 million till date.

REVENUE MODELS

Currently the website has no revenue. The aim of the startup currently is to build a strong database of questions and answers, which it monetize later on. Advertising is the potential model it will look at to monetize.

Advertising – Based on the questions asked or on the content displayed. This form of contextual advertising appears to be the best potential model as it flows with the business model of the company and will not hamper the experience of the users.

CONCERNS

When? – When is the question a lot of people in the startup ecosystem are asking. Building a database and creating an asset is one thing. Monetizing the asset created is another. A sustainable business is one which can do both efficiently. Quora has been in existence for over 6 years and created a strong position for itself in the Q&A space. The startup should start focusing on revenue generation to become sustainable and keep investors interested.

Revenue Model – TripAdvisor (Online Travel Community)

TripAdvisor offers a variety of travel options and travel planning features. Users can discover different hotels and flights, read reviews about them, compare prices and make bookings. Also they have a section for restaurants discovery and a travel forum for users.

REVENUE MODELS

Click Based Advertising – Advertisers (hotels) pay the website each time a user clicks on their ads.

Display Advertising – Advertisers can put banner and text ads on various sections of the website.

Subscription Advertising – Advertisers pay a regular fee to the website to increase their exposure on it.

Affiliate Model – Affiliate revenue from third parties such as airlines, hotels etc. on bookings made through the website.

All revenue models are based on the core focus of the website (travel discovery and community) and on activities which build on the customer experience.