Classic Business Models List
By PROVOK & REVOKE
The best way to learn how to model businesses is to see examples.
So, in this chapter, we’ve listed over 40 standard business models you can find everywhere. In other words, you’ll find over 40 blueprints for value distribution systems that you can reuse or get inspiration from.
Advertising Model
The advertising model generates revenue by displaying advertisements to users.
Affiliate Marketing Model
The affiliate marketing model generates revenue by promoting and selling third-party products in exchange for a commission.
Affiliate Network Model
The affiliate network model connects affiliates who promote products or services with merchants through an affiliate network platform. Affiliates earn commissions for driving traffic or sales to merchants, and the network earns revenue through transaction fees or commissions.
Aggregator Model
The aggregator model consolidates information or services from multiple sources and presents them in a unified way. The aggregator may earn revenue through commissions, advertising, or referral fees.
Auction Model
The auction model facilitates the sale of goods or services through competitive bidding. Sellers offer items for auction, and buyers place bids to win the item. The seller generates revenue from the winning bid.
Bait and Hook Model
The bait and hook model involves selling a primary product at a low price (or giving it away for free) and generating revenue from the sale of complementary products or services.
Bricks-and-Clicks Model
The bricks-and-clicks model combines a physical retail presence with an online store. Customers can make purchases either in-store or online, and revenue is generated from both channels
Bundling Model
The bundling model combines multiple products or services into a package that is sold at a discounted price. Bundling can increase customer value and encourage upselling.
Community-Based Model
The community-based model creates a platform or environment where users can engage, interact, and participate in a community. Revenue is generated through various means, such as advertising, subscriptions, or premium features.
Consulting Model
The consulting model provides expert advice, guidance, and solutions to clients in exchange for consulting fees. Consultants leverage their expertise to help businesses solve problems and drive improvements.
Content Syndication Model
The content syndication model allows content providers to distribute their content to multiple platforms or publishers through a syndication platform. Providers earn revenue through syndication fees or revenue sharing agreements.
Crowdfunding model
The crowdfunding model raises funds for projects or ventures from a large number of people, typically via online platforms. Backers may receive rewards, equity, or other benefits.
Data Monetization Model
The data monetization model generates revenue by collecting, analyzing, and selling data. This model is common among companies that have access to large amounts of data.
Direct Sales Model
The direct sales model generates revenue through direct sales of products to customers.
Dropshipping Model
The dropshipping model allows retailers to sell products online without holding inventory. When a customer places an order, the retailer forwards the order details to a supplier, who ships the product directly to the customer.
Dynamic Pricing Model
The dynamic pricing model adjusts the price of a product or service in real-time based on factors such as demand, supply, or customer segmentation. This allows businesses to optimize revenue and maximize profitability.
E-commerce Model
The e-commerce model generates revenue through online sales of products.
Event Ticketing Model
The event ticketing model involves selling tickets for events such as concerts, conferences, or sports games. Event organizers generate revenue from ticket sales and aim to maximize event attendance.
Franchise Model
The franchise model generates revenue by allowing franchisees to use the franchisor’s brand and business model.
Freemium Model
The freemium model offers basic features for free and generates revenue from premium users.
Freemium w/ Ads Model
The freemium with ads model offers a free version of a product or service with basic features, supported by advertisements. Advertisers pay to place ads, and the provider generates revenue from ad views or clicks.
Freemium w/ In-App Purchases Model
The freemium with in-app purchases model offers a free version of an app or service with basic features, but users can make in-app purchases to unlock additional content, features, or virtual goods.
Influencer Marketing Model
The influencer marketing model leverages the popularity and reach of social media influencers to promote and endorse brands or products. Influencers earn revenue through fees or partnerships with brands.
Licensing Model
The licensing model generates revenue by licensing intellectual property to third parties.
Licensing Platform Model
The licensing platform model connects content creators with licensees through a platform, allowing licensees to access and use licensed content in exchange for licensing fees. The platform generates revenue through transaction fees or commissions.
Marketplace Model
The marketplace model connects buyers and sellers and takes a commission or fee for each transaction.
Membership Model
The membership model offers customers exclusive benefits and content in exchange for a recurring membership fee. This model fosters customer loyalty and provides a steady revenue stream.
Network Effects Model
The network effects model increases the value of a product or service as more people use it. This model is common in social media platforms, communication apps, and online marketplaces. Revenue may be generated through advertising, subscriptions, or transaction fees.
On-Demand Model
The on-demand model allows customers to request products or services to be delivered or provided to them immediately or within a short time frame.
Pay-Per-Use Model
The pay-per-use model charges customers based on their actual usage of a product or service. Customers pay for what they use, leading to more flexible pricing and cost control.
Pay-Per-View Model
The pay-per-view model allows users to access specific content, such as movies or live events, for a one-time fee. Revenue is generated when users pay to view the content.
Peer-to-Peer (P2P) Model
The peer-to-peer (P2P) model enables individuals or businesses to transact directly with each other without intermediaries. P2P platforms facilitate these transactions, often for a fee.
Personalization Model
The personalization model offers customers the ability to customize or personalize products or services according to their preferences or needs. Revenue is generated from the sale of these customized offerings.
Platform as a Service Model
The platform as a service model provides a platform or infrastructure that developers or users can build upon to create and deploy applications. The platform provider generates revenue through platform fees or usage charges.
Print on Demand Model
The print-on-demand model allows customers to order customized or personalized products, such as t-shirts or mugs, which are produced and shipped on demand by a print-on-demand provider. The provider generates revenue from the product sales.
Product as a Service (PaaS) Model
The product-as-a-service model allows customers to pay for the use of a product or equipment without owning it. The provider retains ownership and may offer maintenance, upgrades, and other services.
Razor-and-Blades Model
The razor-and-blades model generates revenue by selling a base product at a low price and complementary products at a higher margin.
Rental Model
The rental model allows customers to temporarily use products or equipment in exchange for rental fees. Rental businesses generate revenue from the rental fees and can serve customers who have temporary needs.
Reseller Model
The reseller model involves intermediaries or resellers who purchase products from manufacturers or suppliers and sell them to customers at a markup. Resellers generate revenue from the price difference.
Software as a Service (SaaS) Model
The Software as a Service (SaaS) model provides software applications to customers over the internet on a subscription basis. Customers access the software through a web browser and do not need to install or maintain the software.
Subscription Box Model
The subscription box model delivers a curated selection of products to customers on a recurring basis. The products may be themed or tailored to individual preferences.
Subscription Model
The subscription model generates recurring revenue through monthly or annual subscriptions.
Two-Sided Marketplace Model
The two-sided marketplace model connects two distinct user groups and facilitates transactions between them. The platform typically earns revenue through commissions, fees, or advertising.
White Label Model
The white label model involves producing a generic product or service that is rebranded and sold by other companies under their own brand names. The white label provider may also offer customization options.
Wholesale Model
The wholesale model involves selling products in bulk at a discounted price to retailers, who then sell them to customers at a higher retail price. Wholesalers generate revenue from the price difference and the volume of sales.
