As CEO we don't have the option of being so "forthcoming" when people try to pitch us on - well, anything, as Cuba Gooding Jr did in the now famous clip from the movie "Jerry Maguire.
http://www.youtube.com/watch?v=D7ir_6Hip1E
We can't jump up and down and scream "Show Me The Money" But there is one question we can ask of everyone who lines up outside our door. And they will either answer the "Show Me the Money" question themselves - or leave on their own.
Just ask "Where is the revenue model?"
I see this all the time and this is exactly where new products fail-at the very, very beginning!
I guarantee you they will reply with a wide variety of ways to package their idea, speak at length about the size of the market and download streams of excel spreadsheets. But none of that is the revenue model.
All of that is just a pricing model!
It's how that salesguy will buy the boat with his commission check.
It's how that technology guru will fund his private island in the South Pacific.
It's how marketing will justify a bigger budget.
Build, bundle, "market" and distribute is not a revenue model.
The only revenue model is "Who will buy it before I've built it - whatever the 'it' is".
So the next time someone hunts you down with the Next Big Thing, rather than roll your eyes in dismay, think about Cuba Gooding Jr 's rant and smile.
Ask "Show Me The Revenue Model".
Then just watch in amusement as they fumble through spreadsheets and charts dragging out all of the irrelevant data they can muster. "
Then you say no - You need to tell me "Who will buy it before I've built it?"
I do this at my own company now and it has saved me millions of wasted hours and lost productivity.
It has also helped me discover two products that I will now launch at the end of this year (because they did bring me customers who were willing to buy it before I had built it!)
So...ask your next caller to "Show You The Money" ? (He just may !)
