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Technical Review 1058494: The path to revenue
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### YamlMime:ModuleUnit
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uid: learn.startups.revenue.introduction
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title: Introduction
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metadata:
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title: Introduction
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description: See an overview of concepts on revenue models. Topics include how to choose a model for your startup and how to make early sales.
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ms.date: 06/18/2024
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author: vhawk85
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ms.author: vahughes
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ms.topic: unit
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ms.collection: learn-startups
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durationInMinutes: 2
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content: |
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[!include[](includes/1-introduction.md)]
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### YamlMime:ModuleUnit
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uid: learn.startups.revenue.introduction
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title: Introduction
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metadata:
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title: Introduction
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description: See an overview of concepts on revenue models. Topics include how to choose a model for your startup and how to make early sales.
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ms.date: 06/16/2025
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author: vaquresh
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ms.author: vaquresh
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ms.topic: unit
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ms.collection: learn-startups
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durationInMinutes: 2
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content: |
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[!include[](includes/1-introduction.md)]
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### YamlMime:ModuleUnit
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uid: learn.startups.revenue.revenue-models
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title: Revenue models
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metadata:
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title: Revenue models
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description: Learn about revenue models. See detailed descriptions and examples of revenue models that tech startups commonly use.
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ms.date: 06/18/2024
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author: vhawk85
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ms.author: vahughes
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ms.topic: unit
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ms.collection: learn-startups
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durationInMinutes: 10
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content: |
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[!include[](includes/2-revenue-models.md)]
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### YamlMime:ModuleUnit
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uid: learn.startups.revenue.revenue-models
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title: Revenue models
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metadata:
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title: Revenue models
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description: Learn about revenue models. See detailed descriptions and examples of revenue models that tech startups commonly use.
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ms.date: 06/16/2025
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author: vaquresh
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ms.author: vaquresh
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ms.topic: unit
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ms.collection: learn-startups
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durationInMinutes: 10
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content: |
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[!include[](includes/2-revenue-models.md)]
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### YamlMime:ModuleUnit
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uid: learn.startups.revenue.generate-early-revenues
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title: Generate early revenues
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metadata:
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title: Generate early revenues
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description: Find out how to start generating revenue with your startup. Learn about ideal first customers and early adopters. See how to find and convert customers.
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ms.date: 06/18/2024
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author: vhawk85
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ms.author: vahughes
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ms.topic: unit
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ms.collection: learn-startups
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durationInMinutes: 10
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content: |
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[!include[](includes/3-generate-early-revenues.md)]
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### YamlMime:ModuleUnit
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uid: learn.startups.revenue.generate-early-revenues
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title: Generate early revenues
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metadata:
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title: Generate early revenues
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description: Find out how to start generating revenue with your startup. Learn about ideal first customers and early adopters. See how to find and convert customers.
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ms.date: 06/16/2025
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author: vaquresh
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ms.author: vaquresh
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ms.topic: unit
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[!include[](includes/3-generate-early-revenues.md)]
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### YamlMime:ModuleUnit
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uid: learn.startups.revenue.knowledge-check
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title: Module assessment
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metadata:
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title: Module assessment
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description: Review concepts on startup revenue models. Topics include choosing the right pricing model and determining which customers to focus on initially.
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ms.date: 06/18/2024
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author: vhawk85
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ms.author: vahughes
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ms.topic: unit
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ms.collection: learn-startups
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durationInMinutes: 4
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quiz:
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questions:
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- content: "If your product is a dashboard for aggregating bank feeds, which pricing model is most likely to be a fit?"
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choices:
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- content: "Subscription"
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isCorrect: true
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explanation: "Correct. A subscription model is best for software like a banking product that customers use regularly."
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- content: "Commission"
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isCorrect: false
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explanation: "Incorrect. A commission model is best for businesses that connect a buyer with a seller. A different model is best for software like a banking product that customers use regularly."
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- content: "Licensing"
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isCorrect: false
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explanation: "Incorrect. With a licensing model, you typically charge a fee when you grant another company the right to use your intellectual property. A different model is best for software like a banking product that customers use regularly."
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- content: "Transactional"
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isCorrect: false
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explanation: "Incorrect. A transactional model is best for physical products that customers purchase online. A different model is best for software like a banking product that customers use regularly."
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- content: "If your product is a marketplace that connects dog owners with dog walkers, which pricing model is most likely to be a fit?"
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choices:
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- content: "Subscription"
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isCorrect: false
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explanation: "Incorrect. A subscription model is best for software products that customer use regularly. A different model is best for marketplace businesses that connect buyers with sellers."
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- content: "Commission"
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isCorrect: true
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explanation: "Correct. A commission model is best for marketplace businesses that connect buyers with sellers."
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- content: "Advertising"
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isCorrect: false
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explanation: "Incorrect. Advertising models are best for businesses that sell advertising space to other companies. A different model is best for marketplace businesses that connect buyers with sellers."
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- content: "Channel"
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isCorrect: false
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explanation: "Incorrect. Channel models are best for products or services that naturally sit alongside another company's offering as an upsell or specialist product. A different model is best for marketplace businesses that connect buyers with sellers."
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- content: "The only reason why it's helpful to focus on your ideal first customer instead of any customer in the early days is because:"
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choices:
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- content: "They'll recommend your product to others in their networks."
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isCorrect: false
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explanation: "Incorrect. Getting customers to recommend your product to others is helpful, but it's not the only option."
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- content: "You'll get better reviews and more five-star ratings."
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isCorrect: false
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explanation: "Incorrect. Getting good reviews and ratings is helpful, but it's not the only option."
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- content: "Your customer lifetime value will be higher because these users are sticky."
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isCorrect: false
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explanation: "Incorrect. Increasing your customer lifetime value is helpful, but it's not the only option."
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- content: "Your cost of acquiring customers will be driven down."
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isCorrect: false
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explanation: "Incorrect. Driving down the cost of acquiring customers is helpful, but it's not the only option."
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- content: "All of these answers are correct."
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isCorrect: true
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explanation: "Correct. There are many benefits to initially focusing on your ideal first customer. When your product is an extremely good fit for customers, they recommend it to others and give you good reviews and ratings. Your customer lifetime value is high because these customers are likely to keep using your product. Referrals that these customers provide drive down your cost of acquiring new customers."
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- content: "Which of the following is most likely to indicate that someone is a potential early adopter for your product?"
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choices:
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- content: "They have a high disposable income."
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isCorrect: false
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explanation: "Incorrect. An early adopter is willing to pay for your product before anyone else will, but they don't necessarily have a high disposable income."
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- content: "They work in tech."
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isCorrect: false
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explanation: "Incorrect. Most early adopters like to try new things. Many have experimented with alternatives. But they can work in any area."
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- content: "They've already built a complex spreadsheet in an attempt to solve the problem."
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isCorrect: true
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explanation: "Correct. Early adopters have likely experimented with alternatives. They might have created makeshift solutions themselves."
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- content: "They work for a company that you're competing with."
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isCorrect: false
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explanation: "Incorrect. Early adopters are likely to have experimented with alternative solutions. But they can work for any company in any area."
1+
### YamlMime:ModuleUnit
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uid: learn.startups.revenue.knowledge-check
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title: Module assessment
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metadata:
5+
title: Module assessment
6+
description: Review concepts on startup revenue models. Topics include choosing the right pricing model and determining which customers to focus on initially.
7+
ms.date: 06/16/2025
8+
author: vaquresh
9+
ms.author: vaquresh
10+
ms.topic: unit
11+
ms.collection: learn-startups
12+
durationInMinutes: 4
13+
quiz:
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questions:
15+
- content: "If your product is a dashboard for aggregating bank feeds, which pricing model is most likely to be a fit?"
16+
choices:
17+
- content: "Subscription"
18+
isCorrect: true
19+
explanation: "Correct. A subscription model is best for software like a banking product that customers use regularly."
20+
- content: "Commission"
21+
isCorrect: false
22+
explanation: "Incorrect. A commission model is best for businesses that connect a buyer with a seller. A different model is best for software like a banking product that customers use regularly."
23+
- content: "Licensing"
24+
isCorrect: false
25+
explanation: "Incorrect. With a licensing model, you typically charge a fee when you grant another company the right to use your intellectual property. A different model is best for software like a banking product that customers use regularly."
26+
- content: "Transactional"
27+
isCorrect: false
28+
explanation: "Incorrect. A transactional model is best for physical products that customers purchase online. A different model is best for software like a banking product that customers use regularly."
29+
30+
- content: "If your product is a marketplace that connects dog owners with dog walkers, which pricing model is most likely to be a fit?"
31+
choices:
32+
- content: "Subscription"
33+
isCorrect: false
34+
explanation: "Incorrect. A subscription model is best for software products that customer use regularly. A different model is best for marketplace businesses that connect buyers with sellers."
35+
- content: "Commission"
36+
isCorrect: true
37+
explanation: "Correct. A commission model is best for marketplace businesses that connect buyers with sellers."
38+
- content: "Advertising"
39+
isCorrect: false
40+
explanation: "Incorrect. Advertising models are best for businesses that sell advertising space to other companies. A different model is best for marketplace businesses that connect buyers with sellers."
41+
- content: "Channel"
42+
isCorrect: false
43+
explanation: "Incorrect. Channel models are best for products or services that naturally sit alongside another company's offering as an upsell or specialist product. A different model is best for marketplace businesses that connect buyers with sellers."
44+
45+
- content: "The only reason why it's helpful to focus on your ideal first customer instead of any customer in the early days is because:"
46+
choices:
47+
- content: "They'll recommend your product to others in their networks."
48+
isCorrect: false
49+
explanation: "Incorrect. Getting customers to recommend your product to others is helpful, but it's not the only option."
50+
- content: "You'll get better reviews and more five-star ratings."
51+
isCorrect: false
52+
explanation: "Incorrect. Getting good reviews and ratings is helpful, but it's not the only option."
53+
- content: "Your customer lifetime value will be higher because these users are sticky."
54+
isCorrect: false
55+
explanation: "Incorrect. Increasing your customer lifetime value is helpful, but it's not the only option."
56+
- content: "Your cost of acquiring customers will be driven down."
57+
isCorrect: false
58+
explanation: "Incorrect. Driving down the cost of acquiring customers is helpful, but it's not the only option."
59+
- content: "All of these answers are correct."
60+
isCorrect: true
61+
explanation: "Correct. There are many benefits to initially focusing on your ideal first customer. When your product is an extremely good fit for customers, they recommend it to others and give you good reviews and ratings. Your customer lifetime value is high because these customers are likely to keep using your product. Referrals that these customers provide drive down your cost of acquiring new customers."
62+
63+
- content: "Which of the following is most likely to indicate that someone is a potential early adopter for your product?"
64+
choices:
65+
- content: "They have a high disposable income."
66+
isCorrect: false
67+
explanation: "Incorrect. An early adopter is willing to pay for your product before anyone else will, but they don't necessarily have a high disposable income."
68+
- content: "They work in tech."
69+
isCorrect: false
70+
explanation: "Incorrect. Most early adopters like to try new things. Many have experimented with alternatives. But they can work in any area."
71+
- content: "They've already built a complex spreadsheet in an attempt to solve the problem."
72+
isCorrect: true
73+
explanation: "Correct. Early adopters have likely experimented with alternatives. They might have created makeshift solutions themselves."
74+
- content: "They work for a company that you're competing with."
75+
isCorrect: false
76+
explanation: "Incorrect. Early adopters are likely to have experimented with alternative solutions. But they can work for any company in any area."
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### YamlMime:ModuleUnit
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uid: learn.startups.revenue.summary
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title: Summary
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metadata:
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title: Summary
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description: Review the fundamentals of revenue models. Topics include testing revenue model assumptions with customers and developing a customer persona.
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ms.date: 06/18/2024
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9-
ms.author: vahughes
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ms.topic: unit
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ms.collection: learn-startups
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durationInMinutes: 1
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content: |
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[!include[](includes/5-summary.md)]
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### YamlMime:ModuleUnit
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uid: learn.startups.revenue.summary
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title: Summary
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metadata:
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title: Summary
6+
description: Review the fundamentals of revenue models. Topics include testing revenue model assumptions with customers and developing a customer persona.
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ms.date: 06/16/2025
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author: vaquresh
9+
ms.author: vaquresh
10+
ms.topic: unit
11+
ms.collection: learn-startups
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durationInMinutes: 1
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content: |
14+
[!include[](includes/5-summary.md)]

learn-pr/startup/revenue/includes/1-introduction.md

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In this module, we look at a range of revenue models and discuss how you can apply them to different types of startups.
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We also cover strategies for making early sales, and we discuss why it's important to focus on ideal first customers and early adopters rather than aim to acquire a large number of users at the outset.
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We also cover strategies for making early sales. In addition, we discuss why it's important to focus on ideal first customers and early adopters rather than aim to acquire a large number of users at the outset.
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## Learning objectives
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