Types of business models

Types of business model:

  1. Manufacturer: makes a finished product from raw materials. Could sell to another Business (B2B) that then sells to the consumer.

  2. Distributor: Buy to manufacturer and re-sell.

  3. Retailers: Directing selling to the public after purchasing products from a distributor or wholesaler.

  4. Franchise: Can be a manufacturer, a distributor or retailer, and sells the entire business model or brand for generate royalties.

  5. Subscription: receive a service or access to a product paying an amount every certain time. The provider needs to give a lot of value to avoid the churn.

  6. Freemium: Freemium + Premium paid.

  7. Advertisement business model: these businesses are popular with media companies or anywhere where information is provided for free. But the information is accompanied with advertisements that a sponsor is paying. Could be digital or “traditional” business, like youtube, magazines, cinemas, and radio.

  8. Data licensing and data selling: Companies, that sells information, data, big data, statistics, etc. The product is your data, the data that you generates.

  9. SAAS (Software as a services): Webapps, apps: Photoshop, Salesforce, etc.

  10. Peer to peer Platform: The company acts as the middleman between two the provider and the consumer or two entities. the company creates value by putting them together. They take a fee for every transaction. Aribnb, UBER.

  11. Online marketplace: Different sellers, and different products onto one platform so the buyers, can buy and compare, etc: Amazon, mercadolibre, etc.

  12. Crowd source business model (wiki): Where companies are facilitating solutions like ideas or technologies for funding by masses.

  13. Razor and blade (consumables): One item (the razor) is sold at a low price and other item (the blade) is selling at a premium price. It create a recurring (LTV) associated cost: printers, ink, gasoline, food, Nespresso Coffee Machine, Xbox.

  14. Social: One for one business model: For every product/service that you sell, one product or service will be given for social impact.

15: Social enterprise business model: The company is looking for profit, but also paying attention to another bottom line which is the social impact, so the company optimizing all the business decisions for those two factors.

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