Companies often make $ in ways that you may not expect.
People learning that Robinhood monetizes via PFOF is just one case.
Decoding companies & their biz models equips you to build more creatively, with more tools in your toolbox.
A few examples... 🧵
People learning that Robinhood monetizes via PFOF is just one case.
Decoding companies & their biz models equips you to build more creatively, with more tools in your toolbox.
A few examples... 🧵
https://twitter.com/stephsmithio/status/1366117717518901248
1/ Amazon: they just sell stuff online, right?
Yes... and no. Their profit center is AWS, making 50%+ of all profits ($Bs) for the giant.
Another sneaky tidbit about AMZN: their advertising business outperformed Twitter's last decade in 2020 alone.
Yes... and no. Their profit center is AWS, making 50%+ of all profits ($Bs) for the giant.
Another sneaky tidbit about AMZN: their advertising business outperformed Twitter's last decade in 2020 alone.
https://twitter.com/TrungTPhan/status/1346464041888317440
2/ Airlines just sell flights, right?
No. In fact, their mileage programs are worth billions.
An appraisal of the U.S. part of the AAdvantage program was between $19.5-$31.5B... MORE than American is worth, total.
Airlines used these programs to secure $Bs in pandemic loans.
No. In fact, their mileage programs are worth billions.
An appraisal of the U.S. part of the AAdvantage program was between $19.5-$31.5B... MORE than American is worth, total.
Airlines used these programs to secure $Bs in pandemic loans.
3/ Qualcomm:
A leading chip maker makes most of its revenue from... making chips.
BUT, most of its profits are made from licensing, where it sells 3G and 4G patents to other companies in the space.
Its margins on licensing are 3x, as it gets a piece of all future device sales.
A leading chip maker makes most of its revenue from... making chips.
BUT, most of its profits are made from licensing, where it sells 3G and 4G patents to other companies in the space.
Its margins on licensing are 3x, as it gets a piece of all future device sales.
4/ Garmin, a company originally known for its GPS navigation tools, only actually sees 15% of their revenue from the auto segment.
The rest falls into other segments, which are seeing the most growth: fitness, outdoor, marine, and aviation.
A masterclass in diversification.
The rest falls into other segments, which are seeing the most growth: fitness, outdoor, marine, and aviation.
A masterclass in diversification.
5/ Subscription boxes:
You think the biz model works as so:
1. Customer pays for box
2. Company pays for products in box to be sent to customer
Wrong.
Many companies get PAID to incl products in their boxes.
Why? They guarantee eyeballs and in this case, a "100% open rate"👇
You think the biz model works as so:
1. Customer pays for box
2. Company pays for products in box to be sent to customer
Wrong.
Many companies get PAID to incl products in their boxes.
Why? They guarantee eyeballs and in this case, a "100% open rate"👇
OK, I gave you a sampling, but now it's time to do your own homework.
Go learn about how:
1. HP uses loss leaders (hint: 🖨)
2. GoodRX sells such cheap 💊
3. Italic used Costco's biz model to deliver products at cost
4. Airpods bring in more $ than Spotify or Snap
What else?
Go learn about how:
1. HP uses loss leaders (hint: 🖨)
2. GoodRX sells such cheap 💊
3. Italic used Costco's biz model to deliver products at cost
4. Airpods bring in more $ than Spotify or Snap
What else?
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