Types of Business Model
Types of business model
We have being discussing the topic; "Business Design" for quite sometime now. This is the concluding part of the series. You can read the previous post on the series here - "How to Cash Out from your customers Pain points or Challenge."
Now let me list the type of business model:
- White Label: You create a product and allow different companies to put their brand on it.
- Open Source: Software that's open for everyone to use. To monetize it you sell a premium feature.
- Long Tail: Offer many products that sell frequently. E.g. Supermarket.
- Franchise: Allowing others buy into a company, e.g. Genesis, Kilimanjaro, etc.
- Razor and Blade: Is a model where one item is sold at a low price or given for totally free in order to sell the complementary products. Example: Gaming companies after buying a game console you still need to buy software and other accessories.
- Freemen: Having a product with different pricing and each price has its bonus, e.g. Spotify.
- Hidden Revenue: Given a product for totally free but generating revenue through promotions and other sources, e.g. Facebook.
- Auction: Where price is not fixed, you can bid. Example is E-bay.
- Subscription: Where clients pay monthly or yearly for your products.
- Passive Business Model: Where people hire your products use and return.
Do not build your business on social media. Rather use social media as an engagement platform.
Have a database of all your clients’ phone numbers, emails, etc.
Also before launching a business makes sure you design and structure your business. Have a good structure that welcomes clients.
And if you have launched without doing some good homework, then you need to re- design your business and launch again.
So, this is where we draw the curton on this series of business design - type of business model. Keep in touch as we roll out other interesting articles. Feel free to share with your friends, especially those that will benefit from reading our articles.
Thank you for following up with the series - "Business Design."