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I’ve been meaning to write up the presentation I gave at BizCamp Dublin for some time so when Kevin Noonan asked to borrow one of the slides it gave me the incentive that I needed to start typing. One of the great aspects of the Internet is how easy and inexpensive it has made setting up a business.
What is unique to Internet businesses is that they can frequently dispense with the cost of distribution.
This means setting up a web based business is cheap – cheaper in fact than it has ever been to set up a business. The web is also democratizing business, and it still has a long way to go, but for the first time almost anyone can think about setting up an international business without major backers. Seeing as web start-ups don’t have this level of investment, this level of due diligence is absent.
Operating A Market – You bring buyers and sellers together into a market place and enable transactions to take place.
Utility – You provide an Internet service that in isolation provides no value; however, when combined with other applications you provide measurable benefits. Publisher or Broadcaster – You could be dealing with commercial content or end user content; it really doesn’t make much of a difference. 3rd party sponsorship – This normally takes the form of advertising but can also be acting as an affiliate.
Quick question is there any examples that you know where all five revenue models being exploited by any company in today market?
There are plenty of company that use all five revenue models however they all tend to be large and in multiple sectors. Startup Founders and Entrepreneurs: What are the most unusual but effective revenue models used by internet startups? Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Clipping is a handy way to collect and organize the most important slides from a presentation. All businesses operating in DC are required to be registered or licensed by the Department of Consumer and Regulatory Affairs (DCRA).This department also issues permits and recognizes business ownership types.
Both centers provide technical assistance and the option to complete the process on-site or online. If you would like to operate in the District of Columbia as a for-profit corporation, non-profit corporation, Limited Liability Company, partnership (limited partnership or limited liability partnership), cooperative association (limited or general) or business trust you must register with Corporations Division of the Department of Consumer and Regulatory Affairs. To register as a foreign company (if your business is already registered outside the District of Columbia), you must file for certificate of registration. Limited liability companies are obliged by law to maintain proper books of account in respect of their income, expenses, assets and liabilities.
The registration of a partnership in Cyprus is effected by submitting a return to the Registrar containing the name, object and duration of the partnership, as well as the names and addresses of the partners and their authority to bind the partnership. The legal definition of a partnership is the relationship between two or more persons carrying on business in common with a view to profit. In general, the partners are jointly liable to the creditors for the debts and obligations of the partnership firm, and each of the partners is also personally liable for all the debts of the firm not satisfied by the partnership assets. The law also provides for a limited partnership with one or more general partners, who manage the firm’s business and have unlimited liability, and one or more limited partners who invest a fixed amount of capital in the firm and are not liable for its debts and obligations beyond the amount of the capital.

A branch of a foreign company may be registered in Cyprus under section 347 of the Companies Law, Chapter 113. A local branch of a foreign company is a branch carrying out operations in Cyprus and offering services to locals. An international business branch is a branch carrying on business outside Cyprus and offering services to non-residents.
Overseas companies may establish a branch in Cyprus by applying directly to the Department of the Registrar of Companies and Official Receiver, within one month of such establishment. With regard to the certification of the above documents, the documents must be legalized and “apostilled” in the country of origin.
In the case of international business companies and partnerships, it is advisable that the manager of the branch is provided with a full set of documents, properly legalized and translated into English or any other language.
By registering a Cyprus branch of an overseas company, no new incorporation is effected since there is an already incorporated company abroad which is simply establishing a place of business in Cyprus. The branch must file with the Registrar of Companies, a certified copy of the balance sheet and profit and loss account of the parent corporation, translated into Greek.
In a lot of ways it is similar to the software industry; there is effectively no capital investment needed (you don’t need to build a factory) and there is close to a zero cost of sale (each additional sale adds nothing to your overall costs). Even software companies have massive sales and marketing costs that are either borne by themselves or by a distributor. We all moan and complain about how difficult it is to get start up capital, but think how difficult it would be if you needed tens of millions to build a factory before you even made a single sale! If you were building a factory on the basis of tens of millions investment there would be a team of ‘grey suits’ analysing you business plans and doing the due diligence to make sure you weren’t sinking their money into a sure-fire loser. This is a problem because you are still investing the most valuable asset you have – your own time.
If you are thirty years old now and are thinking about starting an online business, realize that you will only be thirty once; you never get to relive that year.
A lot of business plans make the assumption that the value their products deliver is equal to the benefits they bring when compared to the customer taking no action. I am sure that there are more but this gives me a basic model that fits just about everything that I have come across. The different here between operating a market and being a merchant is that you enable the transaction but are not actually party to the transition.
PayPal is a great example – by itself it has limited value, but when combined with market places and merchants it provides great value. There is great flexibility to the subscription model and if you are going to monetize your business through subscriptions it behoves you to spend time working out the ideal structure. This is particularly suitable for publishers & broadcasters due to their large audience base. Watch out for the second half with a more in depth look at how things like customer churn and on-site advertising can affect your business. I’d suggest that a lot of folks also use their websites as a storefront and blogs and twitter to build communities.
The Business License Center of the department is for obtaining business licenses and register your organization and the Permit Center is for occupation and construction permits in the District of Columbia. Click on the following link for more information on how to register: Register A Foreign Entity.

It is simple to register and is effected by filling with the Registrar of Companies the company’s Memorandum and Articles of Association and other pertinent information. Financial statements are drawn up in accordance with International Financial Reporting Standards and must be audited annually by auditors who are licensed, under the Companies Law, to carry out audits in Cyprus. Under article 121, the annual return filed with the Registrar of Companies must be accompanied by the full set of financial statements.
Alternatively, legalization is required both by a notary public and the consul of the Republic of Cyprus in that country.
A web based business presents the opportunity of dramatically lowering or eliminating these costs. You owe it to yourself to ensure that you have done the necessary checks and balances to help ensure you aren’t pissing your life away. There is no point in building super cars for teenage boys – sure you’re delivering value but they can’t pay.
This should ideally model the way in which the customers derives value as closely as possible.
This isn’t just a matter of making sure that revenues exceed costs, it is also a matter of making sure that revenues come in quickly enough to cover costs. Business types that commonly take advantage of the subscription model are application providers and utilities. Without knowing the specifics of what you are planning my general advice would be that you should focus on doing one thing first.
If a company is limited by shares, the liability of its members is limited to the nominal value of the shares subscribed by them and if the shares are fully paid up, then the shareholders are not liable to contribute further. There is no requirement that all or any of the partners be Cypriot nationals and a corporate body may be a partner. The value of a product equals the difference between the benefits of your product versus the customer’s next best option. If we examine the above example where we would ideally charge our customers on a commission basis, it turns out that revenue would take 6 months on average to come in and would prove very difficult to collect.
Trying to get 5 revenue models working simultaneously strikes me as difficult to do and would most likely lead to all of them being done poorly. If a company is limited by guarantee, the liability of its members is limited to the amount to which they have agreed to subscribe in the case of liquidation. One of the reasons for this is the proliferation of Silicon Valley web starts up that have no obvious route to monetization. For example, if you are providing a financial planning application the value that you provide is not the value of financial planning. If we closely tied the revenue model to the value that we provide we would charge our customers a commission on each patient enquiry that converted into an actual patient. This may be a viable model for companies that are awash with start up capital, but it is not a reasonable approach for small start-ups on the edge of Europe.
It is the time that you save or the improvements in the plans or the cost reduction in the price of what you offer versus what they currently use.

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