The Business Model Navigator, 2nd Edition

Chapter 21

Hidden Revenue

Seeking alternative sources

The pattern

In the Hidden Revenue pattern, the logic that a business has to rely exclusively on the sale of products or services is abandoned. Instead, the primary source of revenue is derived from a third party, who cross-finances the attractive free or low-priced offerings made to customers (WHAT?, HOW?, VALUE?). A common application of this model is to integrate advertisements into the offering, thereby attracting customers to the advertisers who fund it (WHO?). The chief advantage of working with the Hidden Revenue pattern is that it accesses an alternative source of income that ...