They need to understand the external environment and they need to come in.

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.

In an existing market, if customers react to your hypothesis that what they needed was higher performance and you are correct, this is your revenue curve.

Well, if you think about it, in a new market on year 1 you have no customers, and so your revenue is essentially flat.

The next thing is revenue streams.

This was a startup killer for decades.

What you've already put together is a business model canvas with your hypothesis that says, Look, we're really passionate about this product or service, and we think there's a set of customers out there, and we've put together a revenue model, our first hypotheses and saying we're going to make a lot of money, and that's great, but there's really kind of a method to this madness, and there's not only one way to do this, but this is the way we kind of think of it.

So archetypes really helped us understand our customers, they value prop, the revenue and some of our pricing tactics.

How do they currently buy and what's the revenue stream that's associated with these kind of pricing tactics?

More than likely we'll make money from royalties and commercial licensing, etc.

Our new contacts will give us access to bluechip clients, national governments...

And now they started to get a better understanding of what customer relationships were, about getting customers, keeping them and growing them.

Let's go to month two

And in value proposition, the goal of this is to find out that minimum viable product.

Abby earned 10 more than Ben.

Just think about it, with 5 attrition, your average customers sticks around for about 20 months, but with 1 attrition, they stick around for 100 months.

Just as a reminder, what the teams will be starting with in Week 1 is filling out the business model canvas and getting out of the building and testing their hypotheses about the value proposition, customer segments, and channel.

By now, you're intimately familiar with the business model canvass.

We care how we make our profit.

In customer relationships all the get keep grow metrics, some of which we talked about, some of which you'll discover, what were the customer acquistion costs?

So on day one, these were their initial hypothesis coming into the class.

In particular, because the idea is that if you analyze the data, that data will tell you something about your customers and then you can better serve your customers and then your profits will go higher.

So a plus b have to be equal to 50.

But because I had to cut lawns all summer for all of our neighbors and get paid to do that,

I wouldn't give up, I would just be going back and looking at the customer segments you are targeting and understand whether you want to build the business or have a hobby.

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

He found out emerson's client was dubaku.

Now if you remember we started here on the left. We didn't earn and paid media.

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

It doesn't really work in this context.

Profitable.

Now revenue models seems incredibly simple, it answers the question, how does the company make money from each customer segment.

Now let's go to month 3.

Many companies have huge databases of customer information.

So you say, they both deserve a price to earnings of 10.

That's your job as the facilitator and coach.

Now we finally come to the last part of the business model canvas.

As was simulated, the value proposition includes all the features of your product but also the pains and gains you're solving for the customer segment and that's where the market goes.

Instead of pricing based on cost,

You cater an event where the cost to you was 200

I have no idea where my husband is.

What am I going to look at?

In a non perfect world, you might just be a user and I'm going to monetize you by getting pairs to pay for the fact that I have lots of users, but acquisition that is acquire, and activation is a 2 parts strategy.

So in our last lectures we talked about value proposition, customer segments, distribution channels, customer relationships get, keeping and growing customers.

Let me be clear, you could use the business model canvas and customer development to go through the process for nonprofit but actually having some goals that are fairly concrete revenue and profit allows us to measure whether we're succeeding and failing in very clear ways and then we adjust to the question.