5) Business and revenue model
Now that you showed investors how much money you can make out of your product or service, it’s time to provide details of how you’re going to arrive at these numbers.
I. Outline your main revenue model
Will most of the money come from active revenue streams (a one-time fee or a subscription to use your solution), passive ones (advertisements and affiliate revenue), or will it be a combination of both?
II. Elaborate on the positioning of your product or service in the market
Is it a premium solution for the high-end market? Or, does your competitive advantage lie in a more affordable offer? If your company has tiered pricing, make sure to present the different pricing plans and explain the main differences between them.
If you have already validated your revenue streams prior to pitching to investors, you’re already at an advantage. Present the results of your market tests that show customers are willing to pay your price in order to minimize the fear of risk in potential investors.
Here’s a perfect example of a business and revenue model slide, complete with the primary revenue streams, the company’s position in the market, and main distribution channels.