1.Conclusion all images are taken from google and their respective websites.

2. The content in the book is inspired from various sources.

3. The author does not hold any copyrights of the images and informations are taken to internet.
4. My effort is to give you information in a single book.
THANK YOU

1. Franchise model 3

2. Multi-sided platform model 4

3. Cash machine business model 4

4. Freemium business model 5

5. Subscription business model 6

6. Peer-to-peer business model 7

7. One-for-one business model 8

8. Hidden revenue business model 9

9. Razor and blade business model 10

10. Reverse Razor and Blade business model 11

11. Direct sales business model 12

12. Affiliate marketing business model 13

13. Consulting business model 13

14. Agency-based business model 14

15. User-generated content business model 15

16. Online educational business model 16

17. Instant news business model 16

18. Multi-brand business model 17

19. E-Commerce business model 17

20. Distribution based business model 18

21. Drop-shipping business model 19

22. Enterprise business model 20

23. Social enterprise business model 21

24. Direct-to-consumers business model 21

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25. Family-owned business model 21

26. Blockchain-based business models 22

27. Vertically integrated supply chain business model 23

28. Combination of chains and franchise business model 24

29. Data licensing business model 25

30. Attention merchant business model 26

31. Discount with high-quality business model 27

32. Pyramid Scheme Business model 27

33. Nickel and Dime business Model 27

34. Aggregator Business Model 28

35. API licensing Business Model 28

36. Crowd Source Business Model 29

37. High Touch Business Model 29

38. Low Touch Business Model 30

39. Flex Pricing Business Model 30

40. Auction-Based Business Models 30

41. Reverse Auction Business Model 31

42. Brokerage Business Model 31

43. Bundling Business Model 31

44. Disintermediation Model 32

45. Fractionalization business model 32

46. Pay as Go (Utility) Business Model 33

47. Product as a service 34

48. Standardization business model 35

49. User Base Communities 35

50. Leasing business model 35

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1) Are you looking for ideas to unlock your long-term business value? If you shake your
head in yes, remember that business model is one of the ways to streamline your
business process. Precisely, a business model is a holistic framework to define,
understand, and design your entire business in the industry. Often novice
entrepreneurs do not understand the significance of the business models.

Check out 50 different types of business models, along with examples of companies for
better insight. Try to adopt these business models in your startup.

1. Franchise model
Best for the company’s expansion, franchising allows the franchisor to license its resources,
brand name. Intellectual property and rights for a franchise to sell its products and services
in exchange for a royalty. McDonald’s is the best example which has 93% of its franchised
restaurants worldwide.

Example: ​Subway​, ​McDonald’s​, ​Gold’s Gym

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Image Source: wikimedia commons

2. Multi-sided platform model

Any company that offers services to both sides of business carries out a multi-sided
business model. The perfect example is ​LinkedIn​, which provides subscription services to
people to find job opportunities as well as to HR managers to find candidates for their
vacancies.

Example: ​LinkedIn​, ​Freelancer.com

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3. Cash machine business model

Also known as the cash conversion cycle (CCC). It basically means how quickly a company
converts cash to goods and services and then again into cash. This model is used by the
companies who make low-profit margin but survive in the market with a ​disruptive​ position.
Like, ​Amazon ​generates a massive amount of cash from its online store before it pays to its
suppliers. Another way to look is that Amazon runs its supply chain on vendor credit.

Cash Conversion Cycle: Cash ==> Product & Services ==> Cash

Example: ​Amazon​, ​Alibaba​, ​Apple

Pro tip: This type of business model is most suitable for inventory type of businesses.

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Image Source: Wikimedia commons | Lazada (Alibaba subsidiary) warehouse in Philippines

4. Freemium business model

A mix of free and paid services, the freemium model is mostly used by tech companies in
the Software as a Service (SaaS) or apps business model. To grow business and acquire
customers, companies offer free (lite) versions to customers but for a limited time or with
limited features. To unlock the upgraded features, the customer has to opt for paid services.

Examples: ​Zoom​, ​Dropbox​, ​MailChimp​, ​Evernote​ etc.

Pro tip: It’s an excellent way to encourage customers to try the software or application.

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5. Subscription business model

This model allows the customer to get services by paying a fixed amount every month or
year. In this case, the company has to provide enough value to its customers, so they visit
the website over and over again.

Examples: ​Netflix​, ​LinkedIn​,​ ​Amazon Prime​, ​Dollar Shave Club​, are few of its examples.

Pro Tip: This model is useful for content or service-based websites.

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6. Peer-to-peer business model

As per this model, a company acts as a middleman between two individual parties and
create value for both demand and supply side. It’s different than a typical relationship of a
business selling its services to consumers (B2B or B2C). It makes money through
commissions. ​Airbnb​ is the right example that allows transactions between hosts and
guests.

Example: ​Airbnb​, ​Uber​,​ ​eBay​, ​Offerup​,​ ​Freelancer.com,

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7. One-for-one business model

The one-for-one business model can be referred to as a social entrepreneurship business
model. It’s a hybrid solution, a combination of both profit and not-for-profit services.
Although there are ​some debates​ about its long-term sustainability, many companies are
pivoting their business models to cater to socially conscious millennials. The best example
is TOMS Shoes that provides shoes to underprivileged children globally for every pair of
shoes sold.

Examples: ​TOMS Shoes​, ​Warby Parker ​(donated eyeglasses), ​Two-degree Food​, ​Soapbox
Soaps​.

8. Hidden revenue business model

This model refers to a revenue generation system in which users don’t have to pay for the
services offered, but the company still earns revenue streams from other sources. Like,
Google earns from advertising money spent by businesses to bid on keywords while users
don’t pay for the search engine.

Examples: ​Google​, ​Facebook​, I​ nstagram​, ​Twitter

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9. Razor and blade business model

In this model, one item (Razor) is sold at a low price while another associated item (blade)
is sold at a premium price. It is also known as a printer and cartridge business model. For
example, the price of inkjet printer itself was just a one-time expense, however, getting a
new ink cartridge replaced is an ongoing expense for consumers. The model is great if you
have a loyal customer base and if you can create some sort of lock-in situation with
customers.

Example: ​Xbox or PlayStation Video Games​, ​HP Printers​, ​Nespresso coffee machines​,
AT&T Mobile phones with 2-year contract​.

Pro tip: Use this model, if there is a need for recurring sale of an associated item, which can
generate a continuous flow of revenue.

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10. Reverse Razor and Blade business model

The business model is contrary to the razor blade model. It implies offering low priced
products to encourage customers to buy high priced items as well.

Example: ​Apple’s​ App Store and iTunes sell apps, movies, songs, etc. at reasonable rates
but charges premium prices on its devices like iPhone, iPad, and Mac.

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11. Direct sales business model

In this model, products are directly sold to the end customers either in a one-on-one
conversation or small gathering, remember Tupperware house parties? The salesperson
gets a share of every sale. Although technology has superseded the direct sales method in
many ways, still many companies prefer to give a personal touch to its customers.

Examples: ​Tupperware​, personal care & nutrition brands (​Avon​, ​Arbonne​, and ​Herbalife​)

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Image source: Wikimedia commons | Tupperware party

12. Affiliate marketing business model

In this model, companies make money by featuring, reviewing, and recommending other
company’s products or services. Think about product review websites. These websites are
paid based on sales opportunities that they bring to their vendor companies.

Examples: ​NerdWallet​, ​Capterra​, ​MoneySavingExpert.com​, and ​thewirecutter​.

13. Consulting business model

Companies that provide consulting services by hiring experienced and qualified people and
having them assigned on client’s projects follow the consulting business model. These
companies tend to charge on the hourly basis and/or they take a percentage share based
on the successful completion of the project (cost reduction project). Mckinsey and Boston
Consulting Group are multi-billion-dollar businesses that are based on this model.

Examples: ​Deloitte​, ​Mckinsey​, ​TCS,​ software or website development firms

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Pro tip: if you are a subject matter expert (SME) in a field, and when the duration of the
project is uncertain (based on the change in client’s requirements) then consulting business
model is an excellent way to charge your clients.

14. Agency-based business model

This is a project-based business model, where an outside firm is hired to complete a
specific task. Traditionally, businesses that lack internal expertise hire agencies to get a
customizable solution for their needs. Remember Mad Men? Acclaimed Netflix series that
focuses on advertising agency and their clients. Some niche agencies are digital marketing,
design & architecture, survey, promotion, media, public relationships, branding, website
development, social media, etc.

Example: ​TBWA\Media Arts lab ​(Apple’s go-to ad agency), ​Leo Burnett​ Company (United
Airlines, McDonald’s, Kellogg’s are some of their notable clients)

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15. User-generated content business model

Allowing users to generate quality content on websites for free to answer other users’
questions and provide reviews, this business model is new yet fast-growing.

Examples: The top examples are ​Youtube​, ​Quora​, ​Yelp​, ​Yahoo Answers​, R
​ eddit​.

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16. Online educational business model

Targeting the educational industry, including students and teachers, this business model
allows them to get access to educational resources via flat course fees or subscription. It
can be said as a combination of freemium, course fees, and a subscription-based model.

Examples: ​Khan Academy​, ​LinkedIn learning​, ​Coursera​, ​Udemy​, ​edX​, etc.

17. Instant news business model

This model focuses on sharing and updating news instantly without any intermediary.

Example: ​Twitter​ is the best example.

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18. Multi-brand business model

This model is based on marketing more than two products, almost similar yet competing
with each other and come under a single organization but having different brand names. It
is done to create economies of scale and to build an empire.

Examples: ​Procter & Gamble​, U

​ nilever​, and ​Nestle ​are a few examples.

19. E-Commerce business model

A simple yet most promising business model, e-commerce allows buyers and sellers to
connect and transact using an online platform (online shop).

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Example: ​Amazon​, ​Alibaba​, ​eBay​, ​OLX​, ​Walmart​,Flipkart, etc.

20. Distribution based business model

A company that works by having one or a few key distribution channels to integrate with its
final customers follows this model.

Example: ​Unilever​ spends its major part of revenue in maintaining a proper distribution.

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Image Source: wikimedia commons

21. Drop-shipping business model

A cost-effective as well as an exciting business model. In drop-shipping, a business owner
contacts many different suppliers/ wholesalers to sell their products on the website. Once
an order is placed on a business owner’s website, wholesaler drop-ships the products
directly from the manufacturer to the customer. In this case, the business owner does not
have to hold an inventory and uses the third party to manage all the shipping and logistics
needs.

Pro tip: It’s an excellent way to start a niche e-commerce business website with a limited
upfront cost.

Examples: ​Doba​, ​Oberlo​, ​Dropship Direct​, and ​Wholesale 2B​ are few examples.

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22. Enterprise business model

Targeting and focusing only the large clients, enterprise business model is all based on
getting big deals. It is built on complex sales with a good few potential clients. Like the
clients of Fortune 500 usually have multi-billion dollar budget.

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23. Social enterprise business model

This model is based on the fundamental that companies should make profits without
causing any harm to anyone, and a part of it should be spent in humanitarian works to
improve human living conditions.

Example: ​Brunello Cucinelli​ is an Italian luxury brand that donates about 20% of its profits
towards a social cause.

24. Direct-to-consumers business model

This model allows companies or brands to sell their products to final customers directly.
Highly effective marketing campaigns and advertising activities are required to retain
customers.

Example: ​Unilever​ is the best example while being one of the world’s largest advertisers.

25. Family-owned business model

Any business that is run by a family, and its decision-making processes are controlled by
two or more family members is a family-owned business.

Examples: ​Ford​, ​Walmart​, E

​ stee Lauder​, ​Prada​, ​Comcast​ are few examples.

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26. Blockchain-based business models

The most advanced, futuristic, and modern technology of Blockchain has changed the
entire landscape of transactions, involving decentralized network system on a global scale.
Many crypto-currencies like ​Bitcoin​, ​Ethereum​, and ​Litecoin​ use Blockchain
technology-based business model.

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27. Vertically integrated supply chain business model

This model is about owning and managing the supply chain activities (manufacture,
distribution, and retail) for its products by the company itself. When a company has better
control over how a product is produced and delivered to end users, it can provide products
at lower prices (with better margin) to consumers.

On the contrary, for example, if a company only manufactures a product, and uses a
distribution and retail partners. Then at every step of the supply chain, the additional cost is
added (markup) by the time the product reaches the end customer.

Examples: Think about companies having both factories and retail/online stores. ​Amazon​,
Tesla​, ​Luxottica​, ​Apple​, ​Walmart​, and other grocery stores.

Image source: wikimedia commons

28. Combination of chains and franchise business model

This model is simply a mix of operated chains and licensed stores (franchising). ​Starbucks
is the most famous example that owns both company-operated stores and licensed stores.

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29. Data licensing business model

A business model of ‘data’ has gained a new meaning in this modern world, especially in
the technology sector. Data is a critical component in web technology where companies
require critical information to carry out operations and earn revenue.

Example: ​Twitter​ sells real-time data to its partners, which is then used for advertising and
customer insight.

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30. Attention merchant business model

Attention merchants or influencer operate through advertising model and make money by
grabbing the attention of their target audience.

Examples: ​Snapchat​ & ​Instagram​ allows brands to market themselves through advertising
on their platform.

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31. Discount with high-quality business model

This kind of business model is usually practiced by supermarkets and departmental stores
that get products in bulk and sell on the wholesale rate.

Examples: discounted products with high quality like ​ALDI​, ​Tesco​, L

​ idl​, ​Ross Stores​, and
ASDA​ Stores.

32. Pyramid Scheme Business model

​ pyramid scheme is a business model often considered illegal or controversial. The model
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functions on the sole principal of recruiting members by promising them a reward in the
shape of payments or services if they agree to enroll others into the scheme, rather than
supplying investments or sale of products.

As the recruiting circle grows with infinite speed, the actual recruitment becomes quickly
impossible, which leaves members without any profit.

Example: ​Amway​ is a billion-dollar company which has used these pyramid schemes.

33. Nickel and Dime business Model

This business model consists of the lowest ​price strategy​ for the basic product or service.
By keeping the basic price as low as possible, an additional amount is charged for the other
perks and services that are offered with the main basic service.

Example: ​Spirit​ and ​Frontier​ Airlines are a budget airline that charges the lowest possible
price for the flight tickets and charges fee over additional services like printed boarding pass
fees, carry-on/ check-in luggage, seat preference, priority boarding, Wi-Fi, beverage,
meal/snack, phone booking fees, etc.

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34. Aggregator Business Model

Aggregator Business Model is a network model which provides collective information about
a particular service and sell them under their brand name. Under this business model, most
companies provide information and sources on a single industry.

Example: Companies like ​Zillow​ and O​ yo​ for Hotels, ​Uber​ for taxi service, ​Yodlee​ for
financial service, all use Aggregator business model.

35. API licensing Business Model

API stands for application programming interface (API). It is basically a set of subroutine
definitions, communication setups, and tools for developing software. API licensing
business model provides licensing protocols which allow developers’ community to create
third-party plugin/add-on apps for well-known platforms. And developers pay a fee to get
API access.

Example: ​Microsoft​, ​Apple​, ​LinkedIn​, and ​Twitter​, they all provide API license services.

36. Crowd Source Business Model

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Crowdsource business Model facilitates companies with access to operational solutions like
ideas and technologies, upgraded consumer interaction, opportunities for co-collaboration,
operation optimization, and reduced costs.

Example: Companies like ​Wikipedia​, ​YouTube​, ​Kickstarter​, ​LEGO ideas​, ​Unilever​, ​Coca
Cola​ (new flavor of beverage) are involved in crowdsourcing.

37. High Touch Business Model

In the high-touch business model, customers’ interaction and involvement are on the
highest level to make the experience personalized. It is a phenomenon in which a customer
gets involved in a kind of partnership with the business. High touch is needed for larger
accounts because they pay more and are sticky.

Example: Buying a car at Auto dealership, house, enterprise SaaS requires multiple
interactions with the salesperson.

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38. Low Touch Business Model

Low touch business model is, of course, the opposite of high touch business model where
the product or service is delivered by minimum customer interaction. Low touch is good for
low price software tools where acquiring customers is easier.

Example: Companies like ​Amazon​,​ ​Zendesk​, ​SurveyMonkey​ uses low touch business
model.

39. Flex Pricing Business Model

Flexible pricing model operates through a business strategy in the final price of an item is
negotiable. In short, buyers and sellers can bargain the price to suit their purpose the best.

Example:​ ​Letgo

40. Auction-Based Business Models

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The model is based on the biddings option to buy a product or service. The model is
although not very common now, it is still used for industries like antiques, real estate,
collectibles, and the sales of businesses.

The modern version of the auction model can be witnessed on online platforms trade’s new
and used items like ​eBay​ and ​Amazon

41. Reverse Auction Business Model

This business model follows a strict pattern of setting the highest prices and let the buyers
bid accordingly until the prices start to drop.

Example: Bidding for government contracts

42. Brokerage Business Model

Brokerage business model provides a single platform to buyers and sellers for
communicating the deals. It charges a fee for any transaction between the parties either
from the buyer or the seller depending on the featured category.

Example: ​Expedia​, ​Century 21

43. Bundling Business Model

Bundling is a business strategy that combines products or services to offer a package
gathered as a single combined unit to sell at a comparatively low price. It is the form of
convenient purchasing for several products and services from a single business unit.

Example: ​Microsoft Office 365​ (PowerPoint, Excel, Word, OneNote, Outlook) Value meal at
Burger King​ or ​McDonald’s​, Printer and ink.

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44. Disintermediation Model

Disintermediation Model removes the capacity of outsourcing or a third-party intermediary.
In fact, the organizations following this model deal with the clients and customers directly
via different channel like the internet.

Example: ​Dell​, ​Tesla​ are good examples of companies which follows disintermediation
model.

45. Fractionalization business model

Fractionalization model is selling a product or service for partial usage or separate parts. It’s
a ​strategy​ which divides products and services into further subcategories to introduce
variety in the products, charging for each category separately.

Example: You can sell a pizza by the box or individual slices of different varieties( cheese/
pepperoni)

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Fractionalization business model

46. Pay as Go (Utility) Business Model

The business model charges as per the usage of the product or service.

Example: This model includes electricity, water, and cell phone companies and ​Amazon
Web Services

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47. Product as a service

Product as a service means to sell the service of a product rather than selling the actual
product.

Example: ​Zipcar​, ​Fedex​ Printing service follows the product as a service business model.

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48. Standardization business model

Standardization means to make a service universal, which was once a customized one.
This attracts customers due to convenience and low prices.

Example: ​MinuteClinics​ (a subsidiary of CVS health) is a good example of Standardization.

49. User Base Communities

User base communities earn by developing an interactive platform where users
communicate on their own with each other and can advertise at the same time. The model
generates revenue with both subscription and advertising fees.

Example: ​Craigslist​, ​Angie’s list

50. Leasing business model

Leasing refers to renting large or high-profile items like machines and electronic equipment
instead of them selling it.

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Example: ​Home Depot​ (Tool rental) ​MachineryLink​, ​Hertz​, ​Enterprise​, etc. have adopted a
similar business model.

In addition to the business models mentioned above, there are many others. While these
are most commonly used by companies today, you need to wisely and smartly choose one
or combination for your business.

THANK YOU FOR READING.

HAVE A GREAT DAY AHEAD

REGARDS…….
AYUSH PAWAR
if you have any objection or suggestion email at…..
AAYUSHPAWAR319@GMAIL.COM

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