If you’re looking for ideas to create an innovative business model, look no further! This page has business model examples with a business model canvas designed.
The business model describes how an organization creates, delivers, and captures value.
Business Model Examples
Check out 10 different business model types with examples of companies for further insights. Try to adopt these business models in your company or startup.
Multi-Sided Platform Model
The model implies a company provides service to both business parties. To get a better understanding, let’s look at an example – LinkedIn. The site offers a subscription service to candidates looking for employment and companies seeking new hires.
Freemium Business Model
The model includes both free and paid services. Typically, a business lures new customers with a free subscription. However, it’s free only for a limited period or with a basic set of features. If customers want to unlock full capabilities, they must pay. The monetization option is ideal for encouraging users to try a product. Usually, freemium is implemented for SaaS or mobile app companies.
Subscription Business Model
A business with a subscription business model provides consumers with certain services for a fixed monthly, quarterly, or annual fee. Usually, a company segments the market and makes several offers with different features and prices. These are referred to as tiered offerings. A vivid example is Netflix, with three monthly plans: Basic for $8.99, Standard for $12.99, and Premium for $15.99.
The subscription-based business model is suitable for service-based or content websites. The ultimate challenge for a company is to offer valuable content that will make customers return to the vendor constantly.
Peer-to-Peer Business Model
Under a peer-to-peer (p2p) business model, a business serves as an intermediary between two parties. The intermediary takes a commission for driving value for both the demand and supply sides. For example, look at Airbnb: the service charges a commission when a host and hostee make a deal and carry out a transaction.
Razor and Blade Business Model
This model can also be referred to as a printer and cartridge business model. One product is marketed high, while another one – low. The thing is, an expensive product can’t be utilized without a cheap one. Hence, a business drives constant profit from associated inexpensive goods. For example, consumers will always keep buying ink if they have printers.
Direct Sales Business Model
A direct sales business model takes place when a company adds a personal touch to a sales process. In other words, a sales representative is selling a product directly to an end-customer. It can be a one-on-one or group meeting. The method that Tupperware widely used is still popular, even though technological advancement promotes remote sales and self-service.
Aggregator Business Model
An aggregator business model is a network model. A business is an aggregator if it provides information about a specific service and sells it. Usually, the service is branded. Typically, a company specializes in a particular niche.
Wholesale Business Model
A traditional business model in the B2B segment, wholesale, is about the supply chain. Each party involved in the supply chain is a wholesale business. So, we can say those who sell raw materials to manufacturers or suppliers and distributors who then sell goods to retailers fall for a wholesale business model.
Read More about the Wholesale Business Model
Long-Tail Business Model
If a company sells goods that generate little sales when marketed individually, but there is a significant scope of sales when sold in total, it falls under the long-tail business model. This model appeared not long ago, with the rise of the internet.
The internet allows consumers to shop for niche goods that used to be unattractive for retailers. Now, however, the situation changed as brands can use advanced targeting and segmentation to reach a specific audience. So, marketing niche products isn’t difficult anymore, which encouraged the development of a long-tail business model.
SaaS Business Model
Software as a service (SaaS) is a delivery business model implemented by tech companies that lease the software to customers via central, cloud-based systems. Typically, clients pay a subscription fee to get the license for centrally hosted software.