10 startup business models that you should know (with examples)

If you want to undertake, I am sure that your company will have one of these 10 business models. So let’s immerse ourselves in them.

Users are allowed to use the basic characteristics of software, game or service in a “free” way, and then charged for the “updates” of the basic package.

Examples: Google Drive, Icloud and Slack.

Freemium business model
Freemium business model

Freemium is very common in web -based services (SAAS) and digital applications. In this case, the free version of the product is a growth engine, while the Premium provides long -term income.

It is based on the idea of ​​selling a product or service to receive monthly or annual income per subscription.

Subscription business model

There are different types of subscription business models such as

Subscription to Amazon Umbrella
Subscription pass
Subscription box
Subscription ecosystem

Subscription business model

This is considered as the next step to the freeemium business model if the customer is interested in paying monthly for a premium characteristic of the product.

It is a price strategy in which users pay based on their consumption.

Business model pay-as-you -go
Business model pay-as-you -go

It is used by cloud computing companies such as Google Cloud, AWS, etc. In short, the more it is used, the more it is paid.

A Marketplace is a type of electronic commerce site in which the information of the products or services is provided by third sellers and the company takes a part of the transaction (15%-25%).

Examples – Amazon, Fiverr, Urban Company

Marketplace business model
Marketplace business model

There are different types of marketplaces such as

Light Markets – Craigslist
Managed markets – Airbnb
Very managed markets – Amazon

The FFS business model is based on the collection of customers of a fixed and variable rate for each payment made.

SERVICE PAYMENT BUSINESS MODEL
Service Payment Business Model (Fee for Service)

It is used by companies such as Stripe and Razor Pay where they deduce between 1% and 2% as collection expenses on the amount of the transaction.

Example: Stripe charges 2.9% + 30 ¢ for each payment transaction successfully executed.

The income is generated by selling an article or service to a customer directly.

Widely used by electronic commerce sites or any other product that is bought online. Eg boat, mother earth

Used by social networks giants and search engines, who use their search and interest data to show advertisements.

Example: Google and Meta

Facebook business model
Advertising -based business model

Keep users out of the equation so that they do not pay for the service or product offered, for example, Google users do not pay for searches.

Employment portals can make money charging an update of both the candidate and the recruiter on the web.

In this case, the franchisee (owner of the premises) uses the registered trademark, the brand and business model of a franchisor (company).

Some examples are domino, kfc, etc.

Franchise business model
Franchise business model

In this type of business model, an item is sold at a low price to increase sales of a complementary good, such as consumables.

Examples: Gillete and blades shaving machine, CCD coffee machine and coffee and hp printer grains and cartridges, etc.

Affection blades business model
Affection blades business model

Benefits of the Affection razor approach

Recurring benefits for the brand.
Spare parts with greater margins
Good Opselling and Cross-Selling opportunities
Stable profit model

John