Hybrid B2B Revenue Models…and How to Value Them

"These subscription businesses have a revenue profile that is more like an annuity. This revenue profile is not like the manufacturer’s business that many people learned about from a college introduction to accounting class."

But at a more general level, whether the shift from enterprise to SaaS or the shift from listings to marketplaces to vertically integrated services. Our business models change as a function of the structure of their markets.

This is identical to what we see all over tech today. As the structures of markets change, the optimal business models change with them. Business models are how we align and reconcile the markets needs with the cost and human capital required to provide them. Alignment of markets and the costs to serve them is core. And as either side changes, so t... See more