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3 most common business model types

When it comes to your business model, there is no need to reinvent the wheel. Creating a business model from scratch seems an unnecessary risk. The vast majority of companies are using already existing and proven business models only refining them in search of competitive advantage.

Here is the list of 3 most popular business models for your startup.

Advertisement
This business model has existed for a while and is getting more original as the world shifts to the online space. Its framework is centered around creating content people like to read or watch and showing ads to your potential customers.

In the advertisement business model you have to meet the needs of two customer groups: readers and viewers. By the way, don’t forget about advertisers. Readers may pay or ignore whereas advertisers will pay for sure.

Examples: YouTube, Netflix

Partnership program
This business model is related to the advertisement type and yet possesses its own features. Frequently, partnership programs mean links embedded in the content. It doesn’t include visual advertisements which easily identified.

For instance, if you are using a book review website, you can attach partnership links to Amazon or other bookstores. Once a visitor enters the link and buys a book, your partner will pay a small sale commission to you.

Examples: Amazon, ALIExpress

Commission
Intermediary businesses bring merchants and buyers together which facilitates the deal. They charge for each transaction with a buyer/merchant or both.

One of the most common intermediary businesses is real estate agencies. However, there are many other services. For example, some help building companies find customers.

Examples: real estate agencies, PR-agencies, event-companies.

Which model would you use? Comment below ⬇️


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