Now that you know your customer and solution, let's figure out how you'll actually charge for your value.

There are three main ways businesses make money, and choosing the right one affects everything from cash flow to customer relationships.

Engagement Message

Which revenue stream feels more predictable for a business: one-time payments or monthly recurring payments?

First is the Transaction Model - customers pay each time they buy. Think coffee shops, car repairs, or haircuts. You get paid per purchase, but income varies month to month.

This works well when customers need your solution occasionally or want flexibility to try before committing.

Engagement Message

Name one business that uses the transaction model.

Next is the Subscription Model - customers pay regularly (monthly/yearly) for ongoing access. Think Netflix, gym memberships, or software. Predictable income but requires ongoing value delivery.

This works when customers need your solution continuously or benefit from regular engagement.

Engagement Message

Can you think of a subscription service you currently pay for?

Finally, the Service Model - customers pay for your time, expertise, or custom work. Think consulting, freelance design, or personal training. Often hourly or project-based rates.

This works when customers need personalized solutions or your unique expertise.

Engagement Message

Which model sounds most appealing for your business idea?

Now let's talk pricing psychology. Most businesses price based on their costs plus markup. But smart businesses price based on the value they create for customers.

Value-based pricing means charging what your solution is worth to the customer, not just what it costs you.