Revenue models for precision agriculture (use of internet of things sensors, apps and services) might not be directly applicable in the connectivity business, but will have to be understood if service providers decide to explore roles in distribution (sales channels) of such services.
Retailers who offer precision agriculture programs often charge by the acre, per instance, percentage of yield or per unit sold.
That roughly corresponds to connectivity business pricing models based on flat rate, pay per use, revenue sharing or usage volume.
Bundled Per Acre
Flat per acre rate with all “precision services” offered by the retailer included in the plan.
Per pass or service
Each pass across the field or individual service has a price associated with it.
% of yield bump/gain
(example: a ten bushel/acre yield bump was added to a grower’s average and they share four of those bushels with their service provider)
Per unit of product sold
Service is bundled with each unit of fertilizer, chemical, seed, etc.