The Principle of Profit Models

​This book mainly focuses on defining profit models, on how many main kinds of profit models there are, how profit models can change a company, and how to tailor a profit model to the needs of a certain company. In this context, profit models are classifi

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Guiping Lin • Wei Wei • Wuxiang Zhu

The Principle of Profit Models

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Guiping Lin HSBC Business School Peking University Shenzhen Guangdong China

Wuxiang Zhu Finance Department, School of Economics Tsinghua University Beijing Beijing China

Wei Wei HSBC Business School Peking University Shenzhen Guangdong China

ISBN 978-3-662-44713-0    ISBN 978-3-662-44714-7 (eBook) DOI 10.1007/978-3-662-44714-7 Library of Congress Control Number: 2014956085 Springer Heidelberg New York Dordrecht London © Springer-Verlag Berlin Heidelberg 2015 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

Recommendation Preface: Turn the Wei-Zhu Business Model Theory into Tools for Business Founders

How to design the profit model is a big issue about business model design. Especially in the mobile internet era, if you don’t have a clear idea before you do something and even after you’ve finished doing it, the opportunity is already gone when you’ve figured it out. The idea here usually involves the design of profit models. The key point of this book is on how to design a better profit model; therefore it is a must-read in the mobile internet era. For the Wei-Zhu team, the overarching significance of this book is to instrumentalize theories, which is of great practical importance. The principal of business model design is entrepreneur, but entrepreneurs need not become theorists, as they only need to grasp the tools of business model design and apply them properly. The book provides the tools with which to design profit models. Starting with this book, the Wei-Zhu team will create more user-friendly tools by centering on all the elements of business models—each element represents an entrance to business model design. Human beings are great in that they’ve created and can use tools. Creating tools is also an inevitable path for the research on business models, and is just a matter of time. Since the

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