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Ramp & Business

Model Development

When product market fit is achieved, the focus of activity changes from inside the company to outside the company. The sales force no longer needs to push product at prospects; it is focused on being responsive to the needs customers express on their own.

In recent years pricing models have changed to focus on per-use service charges, versus product acquisition pricing which was prevalent in the past. The effect of this is a reduction in revenue over the service’s lifetime (when you buy something you pay for its use regardless of whether or not you use it), and suppliers see revenue in the form of payment in small recurring amounts (versus one big up-front payment as was the norm in the past).

During the ramp phase, the startup needs to build a viable field infrastructure. The cost of the infrastructure must be less than the amount of revenue the field brings in. This is the crux of a common business model problem; the cost of customer acquisition exceeds the lifetime value of the customer.

MTP offers a service to assist startup design, and augment and deploy a cost-effective field organization. Many models are possible and should be explored and tested. MTP has designed a model called the zero-tier distribution® model that is very capable of eliminating field costs entirely. MTP uses this field infrastructure to assist the startup client during its ramp phase

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