Business Model Types Flashcards
The last and main person in business. He is the last entity of the supply chain. They often buy finished goods from manufacturers or distributors and interface directly with customers
1 Retailer model
Responsible for sourcing raw materials and producing finished goods with the help of internal labor, machinery, and equipment. They sell those products to distributors, retailers, or directly to consumers.
2 Manufacturer model
the business charges a set fee for specific services provided by them. a business set up on this model can increase its earnings by doing work for additional customers or by increasing its price rates. it depends on the business model and it might charge an hourly rate or monthly commission. it may also create fee schedule with a set rate for different types of services.
3 Fee for service model
Is followed by brick-and-mortar stores and e-commerce business. Essentially the customer makes a recurring payment for ongoing access to a service. A company here can charge a subscription fee for its products and services delivered.
4 Subscription model
Involves companies selling two or more products together. It is sold as a single unit often a price lower than what actually they charge selling the products separately. This type of business model helps companies to generate a greater volume of sales of market services or products that are more often difficult to sell. Bundling capitalizes on existing customers.
Bundling model
Charge their customers to use their products. Companies may charge a
Subscription fee as per use
6 Product as well as service model
The company buys a product from the seller and then allows the other company to use the product they purchased for a recurring fee. Leasing business is done for longer periods days or weeks. In the leasing business subscriptions are not charged.
7 Leasing model
Is an established business blueprint that a franchisee purchases. The franchiser that is the owner of the company helps to finance the franchisee. In return, the franchisee ensures that the business functions smoothly. In return, the franchisee pays a percentage of profits to the franchiser.
8 Franchise model
Is responsible for ensuring that manufactured goods reach the market. To make a profit, distributors buy the product in bulk and then sell it to retailers at a higher price. A chain of beauty salons that buys supplies in bulk and sells some of them to other salons.
9 Distribution model
The customers use some parts of the products or services for free. But for advanced access, the customer needs to pay. This model is observed in software or applications. News and internet publishing companies use this freemium model or special content features
10 Freemium model
Businesses use advertising to grab the attention of customers. Advertisers pay for magazines or TV ads or for posters to be stuck on the side of any vehicle. Through this business sell their products to their customers and earn commission. The best example is the podcaster encouraging you to use specific codes when you buy a product they are promoting
11 Advertising or Affiliate marketing model
There are two products which are affiliated with each other. The price of one product is less than the other. This marketing strategy helps business generate profit by locking the customer for a longer period. When razors are purchased razor handles are typically received free whereas the blades cost is high and expensive.
Razor blades model
