A Business Model is a conceptual structure that explains how an organization operates, exchanges money, and how it achieves future goals. All the business policies and processes that an organization follows and adopts are a part of business models. In addition to this, business models deliver and capture value for the company as well as the customer.
Keep in mind that you have to come up with a new business model to have an effective strategy. For example, various restaurants often deliver the same food but keep changing their business model to target different kinds of customers. It does not mean that you need to change the business model entirely; you need to refine them from time to time.
Different Business Models Types
Here is a list of some different types of business models.
- Peer to Peer Model
This model explains how customers use the services of another party or third party .and provide services at an added cost. Some companies allow using the premises of other people to customers at an added value.
- E-commerce Business Model
In simple words, E-commerce business means a collision of commerce and the internet. It focuses on selling the products by creating a web-store on the internet.
- Bricks-and-Clicks
The company has both an offline and online presence and works on the on-demand platform. Building a website is inexpensive and avoids a lot of traditional costs in brick and mortar types of businesses.
- Nickel-and-Dime
The product provided to the customer is cost-sensitive and priced as low as possible. However, additional amounts charged for other perks and services offered with the leading basic service.
- Freemium
One of the most common business models on the internet in which company services are free for customers but charge a premium for add-ons. In this model, businesses give free services to customers to establish the foundation for future transactions.
- Subscription
The subscription business model keeps customers over a long-term contract and gets revenues from repeat purchases. The main aim of this business model is to build relationships with customers for a long time.
- Aggregator
Aggregator business model is a recently developed model that allows the company to sell its services under its brand. It is more like a network model where the company collects information about particular goods and services.
- Agency-Based
In the agency-based business model, an agency has considered a partner company that looks after the non-core business activities. A client has to pay the agency a fee for its services.
