Week 3 (Standard BM) Flashcards
Advertising Business Model
BM based on providing advertisers access to highly targeted customer niches
Auction Business Model
Currently synonymous with eBay, the auction BM has been around since 500BC. The idea is to provide a platform for individuals and businesses to sell items in an auction format.
Bricks and Clicks Business Model
A BM in which a company integrates both offline (bricks) and online (clicks) presences.
Franchise Business Model
A BM in which a firm that has a successful product or service (franchisor) licenses its trademark and method of doing business to other businesses (franchisees)
Freemium Business Model
A BM in which a firm provides a basic version of its service for free, and makes money by selling a premium version of the service.
Low-Cost Business Model
A well-established BM that relies on driving down costs and making money by servicing a large number of customers.
Manufactorer/Retailer Business Model
A BM in which a manufacturer both produces and sells (online, offline, or both) a product.
Peer-to-Peer Business Model
A model in which a business acts as matchmaker between individuals with a service to offer and others who want the service.
Razor and Blades Business Model
This model involves the sales of dependent goods for different prices- one good (a razor) is sold at a discount, with the dependent good (blades) sold at considerably higher margin.
Subscription Business Model
A BM in which the customer pays a monthly, quarterly or yearly subscription fee to have access to a product or service.
Traditional Retailer Business Model
A BM calling for a firm to sell its products or services, made by others, directly to consumers at a markup from the original price. Can be sold online or offline.
