Hello and welcome back to How to Start Your Business. In the business model module today we'll talk about the canvas methodology, about distribution channels, revenue lines and the relationship with customers. Let's begin. This is the module on distribution channels and communication; once we have defined our customer segment to whom we'll offer our value proposition now it's about how supply that value. What makes up the channels of distribution to customers? The channels block describes how the company communicates and supplies its products or services to a market segment whom we want to supply with our value proposition. Some questions we need to ask ourselves to translate this to the canvas methodology and the correct type of distribution channel. The first is through which channels do we reach our market segment. If the company is already operating, how have we been doing it so far? If we're currently doing it physically, do we want to distribute online, do we want to insert distributors, etc. These are the questions we need to ask to optimise the distribution channel. There are other questions such as: How are we integrated in other channels? Above all, third-party channels. Which work for us best? Which are the most efficient? And how do we integrate into the routines of our customers? In other words, how our choice of distribution channel affects our provision of our value proposition. There are many types of channels. There are direct channels, those we contact ourselves and we have them reach our customers through our own channels. They can be sales forces, selling online... And there are indirect channels, with own or associated stores, franchises, wholesalers etc. We also need to be aware of the phases of the channel, from what perception the customer will have when they receive the products or services especially in terms of delivery and post-sale. Who will be in charge of delivery and post-sale? What image will the company give if it's down through an indirect channel? We'll have to be aware of this issue in order to not ruin our image. So, defining the channel types, and identifying in each phase the service level we're giving. Let's go to the customer relationship module. We've defined the segments, the value proposition, how to provide our products and services, and now we'll see how to relate to them. The customer relationship block describes the relationships we establish with a specific market segment. Questions we'll have to ask ourselves: What relationships do customers expect us to have with them? How often do they want us to contact them? What service levels? What do we have to establish? How expensive are they for us? Which relationships work best? Face-to-face, distance, every now and then, contact via email, physical correspondence, notifications... This needs to be defined and integrated into our business model so they perceive it as a service that offers value. So it's very important to identify how our customers want us to relate to them. Good. The last segment we'll talk about today is revenue lines. This segment is where we've seen the most change in the last few years and, in fact, let's start with a definition. The revenue lines block represents the money the business generates from each market segment. What we receive from the customers. There are many questions we need to ask ourselves, not only "I deliver and I get paid", we must think about the price our customers are willing to pay for the value offered. There are many price methodologies. The question of how much they will pay, what are they currently paying for? How are they paying? In cash? Net90? Are they paying through an online platform or physically? How do they prefer to pay? By cheque? Wire transfer? How much does each source contribute to our total revenue? I'll give you some examples of typical monetisation forms. The clearest would be the sale of assets. Another clear example would be the sale of a car or a PC or any physical item or service. A second form of monetisation would be the pay-per-use formula. A very clear and traditional example would be the use of hotel rooms. Every night I'm in a hotel I pay for its use. There's a small revolution because more and more assets are being taken which used to be sold one by one and once a business buys these assets, they make them available to be used. So, method of pay-per-use is increasing very rapidly. What's also increasing rapidly are subscriptions. A traditional subscription would be a gym. Subscriptions are more and more flexible. Lately we've also seen software subscriptions, or subscriptions to content or very new online modalities. Another typical form of monetisation which is also increasing rapidly is rental of private boats. For example, many boat owners who use them infrequently make them available. Channels like the web are revolutionising rental. Things being rented out include boats, flats, second homes, and many things that used to be unimaginable. The typical form of monetisation of rent is growing very rapidly. There's also licence exploitation. A very typical case would be a singer's album who records an album and gives exploitation rights to the production companies and the large record labels for them to exploit the album's licence. Another example of monetisation are brokers' premiums, the typical fees of an estate agent, an agent who sells a service in one country and who is intermediary and charges a premium as a broker for every sale made. One last methodology, and one more typical monetisation form would be publicity. The example is billboards, but there are many other examples, such as bloggers, who with the traffic they generate give a space for advertisers to communicate in their blogs or YouTube videos. Advertising is a very traditional form of monetisation which has diversified a lot, and if our business is high-traffic whether that's physical or online, it's a very good path. We've reached the end of the session. See you in the next one.