Subang Jaya – 11 February, 2022 – A marketplace business model is described as a company that charges a transaction fee to buyers and sellers via a platform. For example, Amazon and Uber. This business model works because these days, running a server isn’t expensive these days, and it’s just becoming cheaper.
It’s just connecting supply and demand rather than dealing with inventory. The sponsorship business model is characterised as a company that gets money from sponsors but does not charge its customers. For example, Youtube and any sports associations. The reason why this works is that free items tend to attract millions of users and people are unconcerned about advertisements or logo placements on their items.
The reseller business model is described as a company that hires reselling agents to market its items on its behalf. For instance, Godaddy & Amway. This business model works because the inventory risk is reduced, and the savings are passed on to the reselling agency. Furthermore, fewer salesmen are required, lowering HR costs significantly.
Lastly, a firm that sells a product on a subscription basis rather than a one-time basis is known as a subscription business model. For instance, Google Apps and Spotify. This works because it is possible to establish stable, recurrent cash flows throughout the lifetime of each client, resulting in a financially sound firm. Moreover, there’s no need to reorder things on a regular basis.
The above are some of the business models businesses use these days. However, there are also some options that are not business models but they can be a great business strategy for your business, such as bundling, cell phone, crowdsourcing and fractionalization.
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