Popular Business Models for Startups


1- Marketplace model

The advantage of this model is that it does not need an inventory and its startup costs are very low. You simply connect sellers and buyers together and make a profit for each transaction between sellers and buys.


2- Subscription model

This model brings a sense of security to both customers and business owners. Customers are happy that they receive the service on a regular basis at an optimal agreed price. Business owners are confident that there are cash flows to their business on a regular basis which makes finance management easier for them.


3- Freemium model

This model offers a basic service or product for free while charging the customers for more advanced product features or services.


4- Advertising model

In this model, advertising companies pay you for showing their advertisements on your platform. The key to this model is satisfying advertisement companies by bringing more visitors and clients to them.


5- Affiliate model

This model uses an indirect approach to the advertisement and uses links embedded in content instead of direct visual ads.


6- Crowdsourcing model

In this model, the power of the crowd is used as leverage to create content in your platform.


7- Franchise model

In this model, you already established a business and you sell the instructions for running your business to someone else. It is most popular in the restaurant industry.


8- Pay-as-you-go model

In this model, customers pay for the amount of service that they consume instead of buying a specific amount of service.


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