Business Models – Different Types. And how to choose one.

A business model refers to the way a company creates, delivers, and captures value from its customers. There are many different types of business models, and companies can choose from a range of options depending on their goals, resources, and target market. Here are some of the most common types of business models:

1. Product/Service-based Business Model: This model is based on selling products or services directly to customers. Companies in this model include retail stores, restaurants, and service providers.
2. Subscription-based Business Model: This model involves charging customers a recurring fee, such as a monthly or annual subscription, in exchange for access to products or services. Companies in this model include streaming services and software companies.
3. Freemium Business Model: This model involves offering a basic version of a product or service for free, with the option for customers to upgrade to a premium version for a fee. Companies in this model include many mobile apps and cloud-based software providers.
4. Advertising-based Business Model: This model involves generating revenue by selling advertising space on a product or service. Companies in this model include search engines and social media platforms.
5. Marketplace Business Model: This model involves connecting buyers and sellers in a platform, typically taking a commission on transactions. Companies in this model include online marketplaces such as Amazon and eBay.
6. Platform Business Model: This model involves creating a platform that connects multiple parties, such as buyers, sellers, or service providers, to facilitate transactions. Companies in this model include ride-sharing services like Uber and Airbnb.
7. Franchise Business Model: This model involves granting the right to use a company’s brand and business model to franchisees in exchange for a fee and a percentage of the franchisee’s revenue. Companies in this model include fast food chains and retail stores.
8. Direct-to-Consumer (D2C) Business Model: This model involves selling products directly to consumers without the use of intermediaries, such as retail stores. Companies in this model include many e-commerce and online retailers.
9. Licensing Business Model: This model involves licensing a company’s intellectual property, such as patents or trademarks, to other companies in exchange for a fee.
10. Pay-What-You-Want Business Model: This model involves allowing customers to pay what they want for a product or service, with the option to pay more or less than the suggested price.
11. Access-based Business Model: This model involves charging customers for access to a product or service, rather than for ownership. Companies in this model include car sharing services and coworking spaces.
12. Affiliate Business Model: This model involves earning a commission for promoting and selling other companies’ products.
13. Crowdfunding Business Model: This model involves raising funds for a project or product through small contributions from a large number of people, typically through an online platform.
14. Subsidized Business Model: This model involves offering a product or service at a lower price, or even for free, with the goal of generating revenue from a related product or service.
15. B2B2C Business Model: This model involves a business selling its products or services to other businesses, which in turn sell the products or services to customers.
16. Brokerage Business Model: This model involves connecting buyers and sellers and facilitating transactions for a fee. Examples include real estate agents, stock brokers, and travel agents.
17. Market Maker Business Model: This model involves facilitating transactions between buyers and sellers and making a profit from the difference between the bid and ask price.
18. Sharing Economy Business Model: This model involves leveraging underutilized assets, such as homes, vehicles, and equipment, by connecting owners with individuals who need those assets. Examples include Airbnb, Uber, and Zipcar.
19. On-Demand Business Model: This model involves delivering goods or services as soon as they are requested, often through the use of mobile or web technologies.
20. Managed Services Business Model: This model involves outsourcing specific business functions, such as IT, accounting, and human resources, to a third-party provider for a fee.
21. Hybrid Business Model: This model involves combining elements of two or more business models to create a unique approach to creating, delivering, and capturing value.

These are just a few of the many different types of business models that companies can choose from. The right business model for a company depends on a number of factors, including the company’s goals, target market, and resources.