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Customer-Centric Business Model

Business Model Examples

By exploring and considering how business models can rewrite the rules for monetization, startups can position themselves for early breakout and Repeatability as well as long-term Sustainable, Valuable and Profitable growth that is not only Disruptive but Defensible. (See )
Business model innovation is often the key to unlocking new markets, creating new revenue streams, and disrupting traditional industries. Here’s an example comparing Microsoft, Google and Apple business models.
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To help you think about how you can create a disruptive business model for your startup, below are examples that showcase a diverse range of business models leveraged across various industries. It’s by no means an exhaustive set of examples, but hopefully it will inspire you to think differently!
To uncover a powerful startup secret about business models, read this:
Business Model Examples in High-Tech
0
Business Model
Explanation
Examples
1
Software as a Service (SaaS)
Delivery of software applications over the internet on a subscription basis
Salesforce, Shopify, Zoom
2
Platform as a Service (PaaS)
Cloud-based platform for developing, running, and managing applications
Heroku, Microsoft Azure, Google App Engine
3
Infrastructure as a Service (IaaS)
Cloud-based infrastructure resources provided on-demand
Amazon Web Services (AWS), Google Cloud, Microsoft Azure
4
Freemium
Offering basic services for free, while charging for premium features
Dropbox, Evernote, Spotify
5
Ad-supported
Providing free services or content and generating revenue through advertisements
Facebook, Google, YouTube
6
Subscription-based
Charging customers a recurring fee for access to products or services
Netflix, Adobe Creative Cloud, Blue Apron
7
E-commerce
Selling products or services online
Amazon, Alibaba, eBay
8
Direct sales
Selling products or services directly to customers without intermediaries
Apple, Tesla, Dell
9
Mobile app monetization
Generating revenue from mobile applications through ads, in-app purchases, or subscriptions
Instagram, Candy Crush, Tinder
10
Data analytics services
Offering insights and analysis of large volumes of data to help businesses make informed decisions
Palantir, Splunk, Tableau
11
Artificial Intelligence (AI) as a Service
Offering AI capabilities and technologies as a cloud-based service
IBM Watson, Microsoft Azure AI, Google Cloud AI
12
On-demand delivery services
Facilitating the delivery of various goods or services on-demand
DoorDash, Instacart, Postmates
13
Virtual Reality (VR) experiences
Creating immersive and interactive virtual environments for entertainment, training, or other purposes
Oculus VR, HTC Vive, PlayStation VR
14
Crowdfunding
Raising funds from a large number of people, typically via an online platform
Kickstarter, Indiegogo, Patreon
15
Digital advertising
Displaying ads on digital platforms or content
Google Ads, Facebook Ads, Twitter Ads
16
Social media marketing and management
Providing tools and services to manage and promote brands on social media platforms
Hootsuite, Sprout Social, Buffer
17
Augmented Reality (AR) advertising
Delivering advertisements that blend virtual elements with real-world environments
Snapchat, Facebook AR ads, Google Lens
18
Digital wallets and payment solutions
Providing secure electronic payment methods and digital wallet services
PayPal, Apple Pay, Google Pay
19
Licensing
Granting permission to use intellectual property in exchange for royalties or fees
Microsoft, Oracle, Qualcomm
20
Open source
Distributing software with a license granting access to its source code
Linux, WordPress, Mozilla
21
Consulting and professional services
Providing expert advice or specialized services to clients
Accenture, McKinsey & Company, Deloitte
22
Hardware sales
Selling physical technology devices or equipment
Apple, Samsung, HP
23
Reseller or distributor model
Selling products to customers through intermediaries or resellers
Ingram Micro, Tech Data, Avnet
24
Franchise model
Granting individuals or groups the right to operate a business under an established brand
McDonald's, Subway, UPS
25
Value-added reseller (VAR)
Reselling technology products or services after adding value or customization
IBM, Cisco, Hewlett Packard Enterprise
26
White-labeling
Allowing other companies to rebrand and sell a product or service as their own
Slack, HubSpot, Mailchimp
27
Joint ventures and strategic partnerships
Collaborating with other companies to jointly develop and market products or services
Sony Ericsson (Sony & Ericsson), BMW Brilliance (BMW & Brilliance China Automotive Holdings)
28
Licensing intellectual property
Granting permission to other companies to use intellectual property in exchange for fees or royalties
Dolby Laboratories, Qualcomm, IBM
29
Experiential marketing events
Creating unique and immersive experiences to promote products or services
Red Bull Stratos, Coachella, Nike Run Club
30
Affiliate networks
Connecting advertisers and publishers to facilitate affiliate marketing programs
Commission Junction, Rakuten Marketing, ShareASale
31
Anything as a Service (XaaS)
Offering various products or services "as a service" to customers
Salesforce, Amazon Web Services (AWS), Dropbox
32
Virtual goods
Selling intangible digital products or in-game items
Fortnite, Roblox, Second Life
33
Content licensing
Licensing content, such as articles, videos, or music, for use by other companies or platforms
Getty Images, Shutterstock, Netflix
34
In-app purchases
Selling additional features, content, or virtual goods within a mobile application
Clash of Clans, Tinder, Pokémon GO
35
Data monetization
Generating revenue by collecting, analyzing, and selling data
Facebook, Google, Acxiom
36
Affiliate marketing
Earning a commission by promoting other companies' products or services
Amazon Associates, ClickBank, Commission Junction
37
Gamification
Applying game elements and mechanics to non-gaming contexts to engage users and drive desired behaviors
Duolingo, Nike+, Starbucks Rewards
38
Content aggregation and curation
Collecting and organizing content from various sources to deliver personalized or curated experiences
Flipboard, Pocket, Feedly
39
Crowdsourcing platforms
Leveraging a crowd or community to obtain ideas, services, or funding for projects or initiatives
Kickstarter, Indiegogo, Freelancer
40
Predictive analytics
Utilizing data and statistical algorithms to forecast future outcomes or trends
SAS, Oracle, IBM Watson Analytics
41
Blockchain-based services
Providing decentralized and secure digital transactions, contracts, or applications
Bitcoin, Ethereum, Ripple
42
Subscription box model
Curating and delivering products to customers on a recurring basis
Birchbox, Dollar Shave Club, Stitch Fix
43
On-demand professional services
Connecting users with on-demand professionals or experts for various services
TaskRabbit, Thumbtack, Upwork
There are no rows in this table
Don’t be afraid to mix, match, innovate and create as you consider different models. For example there’s no reason not to consider models from different industries that might apply to a new industry that has never had that business model. For example how might you use a high tech business model to disrupt a low tech industry or vice versa?
Business Model Examples - more broadly
0
Business Model
Description
Examples
1
Franchising
A business model where an independent operator (the franchisee) buys the right to use a company's trademark, products, and business processes to sell its products or services.
McDonald's, Subway, 7-Eleven
2
Subscription
A business model where customers pay a recurring fee, typically on a monthly or annual basis, to access a product or service.
Dollar Shave Club, Blue Apron, The New York Times
3
Direct Sales
A business model where products or services are sold directly to customers through a sales force, typically door-to-door or through parties.
Amway, Avon, Tupperware
4
Freemium
A business model where a basic version of a product or service is offered for free, with additional features or functionality available for a fee.
The Wall Street Journal, Costco, Pandora Jewelry
5
Pay-As-You-Go
A business model where customers only pay for the products or services they use, typically on a usage-based pricing model.
Zipcar, Rent the Runway, WeWork
There are no rows in this table

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