Saturday, August 30, 2014

Business Model Canvas - Pinterest



Pinterest is a very unique property because it has been valuated as a $5 billion company without having any significant revenues generated.  It has acquired hundreds of millions of dollars in funding from venture capitalists, which is a testament to their confidence in Pinterest's potential to earn revenue.

There are a plethora of ways that Pinterest can earn revenue; the most obvious being in advertising.  The company has recently made an effort to generate revenue by offering "promoted pins" of corporations who have been dying to get a chance to advertise to this unique scrapbooking community.  I believe that the company will eventually offer regular users a way to advertise their products on the site, similar to what Facebook has done.

Pinterest is a service-based business and this will not change unless it plans to launch an actual product.  Before, the company's main focus was on its users but now it has to make sure that it is listening to its advertisers needs' as well.  This may be a slight shift in thinking for management but overall, its not very different than what they were doing previously.  I would imagine that the layout of the website will not be changing (or changing much), so the actual platform shouldn't be a stumbling block for the company either.

No comments:

Post a Comment