12 Standard forms of creating value

1. Subscription

1.1. provides more predictable revenue

1.2. certain level of revenue

1.3. as long as you continue making customers happy

2. Resale

2.1. Retailer

2.2. purchase from manufacturer as inexpensive as possible

2.3. find potential purchasers as fast as possible

2.4. sell as high as possible

2.5. Book Retailers

2.6. close relationship 2 businesses

3. Lease

3.1. asset durable enough to rent over time

3.2. protect from loss & damage

3.3. Housing

3.4. charge enough before asset loses value

4. Product

4.1. Software

4.2. E-Books

5. Help&Service

6. shared resources

7. agency

7.1. team up with sb who offers value

7.2. earn commission or fee

7.3. find a seller with a valuable assets

7.4. literal agents

7.5. good agents can find assets worth purchasing, keep from bad deals

7.6. key: fee high enough to payoff your transactions & time

8. audience aggregation

8.1. selling access to a 3rd party

8.2. identify group of people with a common interest

8.3. without alienating the audience

8.4. advertising obnoxious: tolerated up to a certain state

8.5. advertising - attention - buyers

8.6. bringing in new customers

9. loan

9.1. have some amount of money to loan

9.2. find people who want to borrow the money

9.3. immediate access otherwise too expensive to pay at once

9.4. credit cards

9.5. mortgages

9.6. interest rate

9.7. underwriting critical to lenders

9.8. if loan not payed: risk to borrower

10. option

10.1. movie concert tickets

10.2. exchange for a fee right to attend at a particular price

10.3. identify some action some people might take in future

10.4. enforce the specified deadline of action

10.5. flexibility: more: viable business model

11. 11 insurance

11.1. transfer risk to insurer

11.2. spreads risks over a large number of individuals

11.3. more premium payments than paying

11.4. minimizing premiums, minimizing claims

12. 12 Capital