Asked by Daniel Sullivan on Feb 18, 2024
Verified
If a new company starts with a website offering free services for teachers and later sells classroom posters,the company is generating revenue from "free" business model.
Business Model
Describes the rationale of how a new venture creates, delivers, and captures value.
- Recognizing the importance of diversifying revenue streams for a company's sustainability and growth.
- Identifying the target audience and their needs in order to offer relevant products or services.
- Understanding the concept of a "free" business model and its potential for generating revenue.
Verified Answer
VG
Viridiana Gomez
Feb 18, 2024
Final Answer :
True
Explanation :
Although the initial business model was based on offering free services for teachers, the company later generated revenue by selling classroom posters. This is an example of the "freemium" or "free with premium" model, where a company offers some services for free to attract customers and then generates revenue by selling additional premium products or services.
Learning Objectives
- Recognizing the importance of diversifying revenue streams for a company's sustainability and growth.
- Identifying the target audience and their needs in order to offer relevant products or services.
- Understanding the concept of a "free" business model and its potential for generating revenue.
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