Pricing Strategies
Revenue Sharing:
The B2B2C revenue sharing model involves partnerships where businesses collaborate to offer services or products to the consumer, sharing the generated revenue. Typically, one business provides a product or service, while the other offers access to their consumer base, both benefiting from the increased market reach and revenue.
TYPES OF SOFTWARE
E-commerce platforms where third-party vendors sell products directly to consumers through a larger, established platform.
Software as a Service (SaaS) tools integrated into other services or platforms that cater to both businesses and consumers.
Streaming services that host content from various creators or studios, sharing revenue based on viewership or subscriptions.
BENEFITS
Job Type
CHALLENGES
Revenue Splitting: Determining the terms of revenue sharing can be complex and requires clear agreements to avoid conflicts.
Dependency: Can lead to dependency on the partner's platform or customer base, which might affect business stability if the partnership alters.
Brand Alignment: Requires careful consideration to ensure that partner brands are aligned and that the collaboration does not dilute or harm either brand.
PSYCHOLOGICAL TACTICS
Trust Building: Leveraging the trust that consumers already have in one platform to introduce them to another service or product.
Exclusive Offers: Creating exclusive offers that are available only through the partnership, adding value to the consumer's experience.
Co-Branding: Using co-branding strategies to enhance perceived value and assure customers of the product's or service's credibility.
TESTING & FEEDBACK
Pilot Programs: Starting with a small-scale implementation to test how the partnership affects both user bases and adjusting based on feedback.
Consumer Surveys: Gathering feedback from both consumer bases to understand how they perceive the new offerings and partnership.
Performance Analytics: Closely monitoring metrics like sales volume, customer engagement, and revenue from shared customers to evaluate the effectiveness of the partnership.
IMPLEMENTATION
Clear Agreements: Ensuring all terms of revenue sharing, responsibilities, and branding are clearly agreed upon and documented.
Integration Support: Providing robust technical and customer support to ensure seamless integration of services or products.
Marketing Collaboration: Collaborating on marketing efforts to cohesively promote the partnership and shared offerings.
BEST FOR
B2B2C
FLEXIBILITY
Moderate
While the model can be flexible in terms of adjusting terms and integration based on performance and market changes, it is moderately scalable. Expansion often requires additional partnerships or enhancing existing ones, which can be more complex than scaling a single-business operation.
REAL-WORLD EXAMPLE
A classic example of the B2B2C revenue sharing model is Spotify's collaboration with music labels. Spotify streams music from various labels and artists, sharing revenue generated from subscriptions and advertisements. This partnership allows labels to reach Spotify's vast user base, while Spotify benefits from a rich library of music to attract and retain subscribers. The arrangement mutually enhances revenue streams and market presence for both Spotify and the music labels involved.
View the collection of Pricing Workshops.