And the first one is that this whole idea about revenue stream, Steve, I get it.

Let me say that again.

So why don't you think about this for a second and tell me, which part was the revenue stream and which part was the pricing tactic.

But today we re going to be talking about revenue streams.

We've talked about value props, customer segments, channels, customer relationships, revenue streams.

There's kind of a general rule of thumb that if a company is not doing anything, it's just stable, safe, not moving up or down, that a fair or a cheap Price to Earnings is 10 times this year or last year.

Because when someone says earnings, are those the earnings last year?

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

All this kind of added up to the left hand side of this canvas, which is equivalent to revenue streams, but it's the cost.

You've been out talking to customers.

It's closer to a bank account that Company B, sure it made 5 in earnings, but that is risky.

So a plus b have to be equal to 50.

Again the only way to figure this out is being able to interact with tens or hundreds or thousands of customers so you finally understand what the right revenue streams and revenue model is.

And how they were going to create demand was through search ads, social media, and stadium promotions.

Profitable.

The earnings I just said, this is actually what happened to the company.

This is a multi sided market.

So that's a little bit of a taste of why someone might realistically, in this case, pay a higher Price to Earnings for safety.

We've already talked about value propositions, customer segments, distribution channels, customer relationships, and revenue streams.

But I just want to give you the gist of what's happening.

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

The reason why you are willing to pay a higher Price to

Maybe Abby made 50 and Ben earned 0.

And when people talk about earnings of a company, this is what they're talking about.

We talked about the potential ways to charge

Abby's and Ben's earnings given only this first constraint.

And what's left over for the equity?

What does that tell us?

Maybe the people who were renting, they were working odd jobs, or they didn't have a steady income.

Because to some degree, rental is kind of the earnings on a home.

Travel agencies' profits soared.

You can probably guess.

This 2 were my earnings.

So let's look at them over the course of one year.

So notice.

Everything on this line would be a valid combination of

The company's profitability improved.

Is it a license or subscription model?

And it turned out that it was really helpful to kind of understand our pricing model and our revenue streams.

This is really important to pay attention to, because so many people say, oh, a company made this much.

Where the profits flow, we will s...

It's the same plot.

We learned that in our first video.

It's kind of ironic we're getting to the last part of the business model canvas that could actually put us out of business.