All you need to know about business models
11 Proven business models: How they work and generate revenue
1. Product-Based model
Focuses on selling physical goods directly to consumers or businesses. Revenue comes from product sales.
Examples: Retail stores, manufacturing companies.
2. Service-Based model
Offers services rather than products, generating revenue through service fees.
Examples: Consulting firms, digital marketing agencies, freelancers.
3. Subscription model
Charges customers a recurring fee (monthly, quarterly, yearly) for continuous access to a product or service.
Examples: Streaming services, SaaS (Software as a Service) companies.
4. Marketplace model
Acts as a platform connecting buyers and sellers, earning revenue from commissions or listing fees.
Examples: Amazon, eBay, Airbnb.
5. On-Demand model
Provides goods or services immediately upon request, often via mobile apps. Revenue comes from each transaction.
Examples: Uber, DoorDash, TaskRabbit.
6. Direct sales model
Sells products directly to consumers, bypassing intermediaries. Can be in-person or online.
Examples: Avon, Tupperware, many e-commerce stores.
7. Affiliate model
Earns commissions by promoting and selling another company’s products. Revenue is generated from affiliate links.
Examples: Affiliate blogs, influencers, comparison websites.
8. Franchise model
Allows individuals to operate under a brand’s established business model in exchange for fees and royalties.
Examples: McDonald’s, Subway, Starbucks.
9. Peer-to-peer (P2P) model
Connects individuals to share or exchange goods and services directly, earning revenue from transaction fees.
Examples: Airbnb, LendingClub.
10. Brokerage model
Brings buyers and sellers together, earning revenue through commission or transaction fees.
Examples: Real estate agencies, stockbrokers.
11. Data licensing and advertising model
Monetizes data collection, analysis, and sales or earns revenue through advertising.
Examples: Facebook, Google, credit reporting agencies.
Useful Business Templates
A template used to identify the difference between the current and the desired state, identifying improvement actions.
A template for evaluating employees' performance, recording skills, achievements, and areas for improvement.
A structured plan outlining how your business will promote, sell, and deliver its products or services to meet revenue goals.
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