Business Model Slide: Show How You Make Money
Your business model slide is where investors understand your path to profitability. Learn how to present a clear, credible revenue strategy that investors can get excited about.
Why Business Model Matters
Investors need to understand how you'll turn your solution into a sustainable business. This slide should make your revenue strategy feel obvious, scalable, and aligned with how your customers naturally want to pay.
🎯 Your Goal
Make investors think "This is a clear path to significant revenue that makes sense for both the business and customers."
Business Model Framework
1. Revenue Model
How do you make money? Choose your primary model:
Transaction Fees
Take % of each transaction
Example: 15% commission on each booking
Subscription
Monthly/annual recurring fees
Example: $29/month for unlimited access
Freemium
Free tier + paid upgrades
Example: Free basic, $19/month pro
Usage-Based
Pay per use or consumption
Example: $5 per report generated
2. Unit Economics
Show the fundamental math of your business:
3. Revenue Streams
Show multiple ways you can generate revenue:
4. Market Validation
Prove customers will pay your prices:
- • 89% of surveyed parents said they'd pay $15-25 premium for verified, instant childcare
- • Current customers average 4.2 bookings/month at $18 average fee
- • 67% of users upgraded to premium within 30 days
Business Model Template
How We Make Money
Unit Economics
Revenue Streams
Pricing Validation
[Key evidence that customers will pay your prices]
Common Business Models by Industry
SaaS/Software
- • Subscription: Monthly/annual recurring revenue
- • Freemium: Free tier converts to paid plans
- • Usage-based: Pay for consumption (API calls, storage)
- • Seat-based: Per user per month pricing
Marketplace
- • Transaction fees: Commission on each transaction
- • Listing fees: Charge sellers to post items
- • Subscription: Monthly fee for premium seller tools
- • Lead generation: Pay for qualified leads/introductions
Consumer Apps
- • Freemium: Free app with paid premium features
- • In-app purchases: Virtual goods, additional content
- • Advertising: Display ads, sponsored content
- • Subscription: Monthly access to premium content
E-commerce
- • Product sales: Direct selling with markup
- • Subscription boxes: Recurring product deliveries
- • Drop-shipping: No inventory, commission-based
- • White-label: License your product to others
Common Mistakes to Avoid
❌ Too Many Revenue Streams
Don't list 8 different ways you'll make money. Focus on 1-2 primary streams that will drive 80%+ of revenue in the first 3 years.
❌ Unrealistic Unit Economics
Don't show unit economics that seem too good to be true. If your LTV:CAC is 50:1, investors will question your assumptions.
❌ No Validation
Don't just say "Users will pay $X." Show evidence: surveys, pilot customers, actual payments, or comparable pricing in the market.
❌ "We'll Figure It Out Later"
Never say monetization will come later after you get users. Investors want to see a clear path to revenue from day one.
Questions Investors Will Ask
Pricing & Competition
- • "How did you determine these prices?"
- • "What do competitors charge?"
- • "What happens if you need to lower prices?"
- • "How price sensitive are your customers?"
Unit Economics
- • "How did you calculate customer lifetime value?"
- • "What's included in your CAC calculation?"
- • "How will these numbers change at scale?"
- • "What's your payback period?"
Revenue Streams
- • "Which revenue stream will grow fastest?"
- • "What percentage of users convert to paid?"
- • "How long until revenue streams 2 and 3 launch?"
- • "What's the gross margin on each revenue stream?"