How to choose the right business model?
When you need to pick a business model for your startup idea, there are many options to explore. As a guide we’ve handpicked dozens of remarkable revenue models and partnership ideas. Browse this list and copy the elements that fit your needs. Feel free to use all the examples and tools as an input for your business plan.
How to select a new business model?
+100 slides that will help you in your selection process. In this deck we highlight different tips & tricks used by other startups.
Business Model inspiration: All types
How do I make money?
The most common business model options used by e-businesses and online services. This list is not limited to digital revenue streams.
Free (or nearly free) for the user:
- Early exit strategy
- Pay-what-you-want (PWYW)
- Tip jar/donation
- Freemium model
- Barter or Swapping for services
- Barter or Swapping for products
Paid (direct sales business model):
- Subscription model
- Premium model
- Pay-per-use model
- Add-ons/In-app purchases
- License fees
- Single purchase model
- Pay-as-you-go model (PAYG)
Third Party options:
- Advertisement (Ad-based) model
- Affiliate/Referral fee
- Get-one-give-one model (G1G1)
- Franchise model
- Commission-based model
- Auction model
Mixed business model:
- Razor and blade model
- Open source model
- No frills model (discount or budget model)
Cases & Examples: Companies to learn from
Page 1: All the essential information captured in a clean visual to understand how this company actually works.
Page 2: For of each card we’ve added related business models. We’ve also highlighted the most innovative components of this every venture.
Business Model of Doorsteps
Doorsteps sells its online service via a subscription fee to agents and loan offices, but also takes a commission on services of other service providers, whom receive leads through the platform.
Business Model of Patients Like Me
Patients like me offers a free health community service to its users. They make money by selling the data, generated by the community, to pharmaceutical companies.
Business Model of Kaggle
Kaggle makes money in two ways: With Kaggle competition, they receive a “listening fee”for each competition posted on the platform. Also they provide a service for matching companies to the top 0,5% of their community, which they call “Kaggle Connect.
Business Model of Friendsurance
Friendsurance works as a broker between Policy Holders and existing Insurance Partners. They’re letting customers share risks with friends, allowing them to lower prices due to reduced fraud & process costs, better risk pools, …
Business Model of Gympact
With the motivational service for free, GymPact takes a cut when they pay out to members who successfully met their Pact.
Business model of Narrative
Selling camera devices ($279) + subscription service on the data storage system ($9/month). Different apps will be available, which are currently set to be included in the subscription service.
Business model of 3D Hubs
3D Hubs takes a commission of 15% on every 3D printed product, ordered through the platform.
Business model of Giffgaff
Giffgaff works as Mobile Virtual Network Operator. MVNO’s have business arrangements with traditional mobile operators to buy minutes of use (MOU) which they then sell to their own customers.
Business model of Glow
Glow sells “data insights” regarding conceiving to Research Institutions & gives exposure to trustworthy Infertility Treatment Clinics. The data is generates by users who use the Glow free fertility-tracking app.
Business model of e-École
SFR works in a partnership model with other service providers. After a set-up fee; local school administration, taking a 3 year commitment, pay a monthly subscription fee to a separate leasing company, who disburses it to the different service providers.
Business model of Shiply
Shiply works as a broker, taking a commission on transactions . Transport service providers’ bids are subjected to a tiered fee structure (4%-10%, depending on the amount of the transaction) called the success fee. Additional, an Auction Service Fee is requested which covers the online service.
Business model of Uber
Uber takes a 5-20% commission on all the rides made through it’s service. Since all payments are done automatically through the app, Uber ensures to capture a part of the transaction.
Business model of The Winner Takes All
Winner Takes All charges a transaction fee from the customers (from €0.75 for the purchase of only 1 ticket, to €0,15 per ticket for an annual subscription model).
Business model of Karma
Karma sells the Karma hotspot for $99 and additional bandwidth for $14 per gigabyte. If you like to purchase a data pack, Karma offers some discount: $50/5Gb & $180/20Gb
Business model of Sanergy
Sanergy makes money by selling fertilizer out of human manure to other companies. They collect this waste through their not-for-profit franchising brand “Fresh Life Toilets”, supporting entrepreneurs in emerging markets.
Business model of Jawbone
Jawbone UP makes money with selling data tracking wristbands at a retail price of $129.99. Users can use the free app for getting insights in this data.
Business model of 23andMe
23andMe makes money with personal genetic tests, providing reports on +240 health conditions & lineage discovery. Believed is that their DNA research studies & surveys will soon be an additional way of making money, with a mainly B2B focus instead of B2C.
Business model of AliveCor
AliveCor makes money by selling ECG devices ($199) that fit on existing smartphones and via their AliveInsights Service, a professional analysis service that makes it easy to get expert insight on your ECG readings.
Business model of Wijeya Newspaper
The partnership has two revenue streams: -A reduction in cost by lowering the ink consumption. -The supplier taking back waste material makes it possible to sell unused ink again.
Business model of AirBnB
Providing the platform for “free”, Airbnb takes a 3% commission on host ‘s earnings and asks a booking fee of 6-12% to guests for every booking they make.
Business model of Changers.com
Changers makes money with selling solar panels + batteries. In the Changers shop, where community members can redeem credits for products and services, they give exposure to green brands, which pay a commission fee for the leads.
Business model of Decide.com
Decide works as a broker between people that want to buy the best deal, and retail companies like Amazon, … Becides their free product advice, they offer a pro-service fro $2.5/month offering additional services like price guarantees, best time to buy, ….
Business model of The Humble Bundle
Humble Bundle is fully dependent on the pay-what-you-want concept. People can choose what goes to the author, charity and Humble Bundle itself (what they call the Humble tip). On average, 15% of the total funds.
Business model of SF Park
SFpark makes money with providing parking spaces in San Francisco city-area. Parking prices are incrementally raised or lowered in SFpark areas based on demand.
Business model of Asap54
ASAP54 makes money by selling items from partner retailers to consumers, upon which ASAP54 earns an average commission of 5% per item sold.
Business model of Tesla
- Drivers pre-pay their energy for the next 10 years, Tesla on its turn invests the money in the Supercharger network and makes sure the energy provided becomes cheaper.
- Competitors pay Tesla for every car using the network.
Business model of Alphabank
Alfa bank requires their new sportive customers, who are interested in the free ‘“Alfa Activity” account, to sign up for a regular bank account, which costs 59 Rubles (€1,20) per month, and a free internet account “Alfa Click.”