Use this model if you are planning on taking a transaction fee or rental fee as a revenue driver.
Models that use a transaction fee include:
- Rental Fee Model like Chugg
- Transaction Fee Model like 99Designs
- If you are planning one side of a marketplace model, where you don’t own the product but take a fee on the product
Key financial model drivers are:
- Number of transactions per month
- Average transaction fee %
A risk in the financial model for transaction fees is starting the percentage too low. It’s much easier to discount a price from retail using promotions than it is to raise the price later.