... where visionaries, game changers, and challengers discuss business models
My new book, FairPay: Adaptively Win–Win Customer Relationships, rethinks business models for the digital era. It has been praised as
"radically new perspective"
"what disruption could look like in a new digital business era."
"explains how a radical shift in how we set prices can help enterprises become more customer focused...promises to transform business by providing a new operational dynamic for maximizing customer lifetime value."
In fact, the adaptive and dynamic nature of FairPay is itself a process for generating the details of business models (because it can take on the characteristics of many different models), and thus can help bake the idea of business model generation -- design thinking -- into core business processes. Given this deep and broad impact, I suggest that FairPay offers a new business model "Pattern."
Portions of the book are online on Amazon and Google. The Foreword by Adrian Payne, one of the foremost authorities on Relationship Marketing and CRM, provides a nice overview. Background on FairPay is also on my blog.
Very interesting concept. Your example of how it could work in a media scenario is good food for thought.
Initially I see some constraints on the effectiveness of this approach. It seems best suited to industries and businesses with recurring revenue potential and very low marginal cost for scale.
Though I don't agree it affects every block of the canvas, I certainly see the dynamic effect in CR and KA, and possibly KR if you look at data on buyers as a resource. It is a pricing strategy more than a complete business model pattern. Yes, it will have some cascading effects in other areas of the business model.
As to effects on the canvas, yes, it is a question of both direct and indirect effects on the different blocks. For example, FairPay will enable a broader range and deeper personalization of Value Propositions and Revenue Streams, and a very different way to think of and shape Customer Segments, all personalized more dynamically.
At a higher level, you can think of FairPay as an architecture and an engine for adaptively shifting among a continuum of business model alternatives based on the individual buyer seller relationship. The core process of win-win adaptation can be applied at this higher level, centering on any and all aspects of the value proposition as driven by the other boxes (as suggested in Chapter 15 of my book).
I agree that FairPay is primarily aimed at recurring revenue. And I agree that many of the most immediate opportunities are where there are low marginal costs. However, it can also be applied with pre-set floor prices to apply to more costly goods. The floor price would be set by the seller to cover marginal costs, but the bulk of the contribution margin above that can be determined by FairPay participative pricing for a "bonus" contribution. (See "FairPay-What-You-Want for Costly Products? Etsy? Everlane? Tiffany?")