The potential rewards of a flexible pricing model include the ability to maximize profits by adjusting prices according to market demand. It can also attract a wider range of customers with different price sensitivities. However, the risks include the possibility of alienating customers if prices fluctuate too frequently or drastically. It can also be more complex to manage and may require more sophisticated pricing strategies and systems.

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Some alternative models to ad-supported businesses include flexible pricing where pricing changes based on market demand, membership where additional benefits are offered in exchange for a membership fee, metered use where users pay by the quantity of use instead of a flat fee, and switchboard where a new marketplace is created by connecting multiple sellers to multiple buyers.

Some potential challenges of managing multiple sellers and buyers in a switchboard model include maintaining balance between supply and demand, ensuring quality control, managing complex logistics, dealing with competition, and handling potential conflicts between sellers and buyers.

Some strategies for managing the quantity of use in a metered use model include setting clear usage limits, monitoring usage patterns to adjust pricing, offering tiered pricing based on usage, and providing incentives for lower usage during peak times.

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Ten Types of Innovation: The Discipline of Building Breakthroughs

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