Business Models: 17 Business Models Which Add Value

Business Models: Leaving Money On The Table?

As an entrepreneur, choosing the right business model can make all the difference in the success of your venture. A business model can be defined as the way a company creates and captures value. By selecting the right model, you can unlock the potential to grow your revenue and capture even more value.

In this article, we'll explore some of the most valuable business models available, so you can choose which are best for your business.

1. Subscription-Based Model: The subscription-based model allows you to create a more stable, longer-term revenue stream. One great example of this is Costco, a food and clothing retailer that generates over $54 billion in revenue. Costco uses a subscription-based model, charging monthly membership fees for customers to access their range of lower-priced products. Other examples of subscription-based models include Netflix, mobile phone subscriptions, and fiber subscriptions.

2. Pay-As-You-Use Model: This model makes it easier for customers to afford your service by allowing them to pay only for what they use. Many companies that offer subscription-based models also offer a pay-as-you-use option, allowing potential customers to try your service at a lower cost, with higher margins for you. Examples of pay-as-you-use models include Dropbox, Google Cloud, and pay-as-you-go mobile phone use.

3.Vertical Integration: By owning the whole supply chain, including raw materials, you can gain more control over the quality and cost of your products. This model has been successfully implemented by companies such as Apple, which controls the design, manufacturing, and distribution of its products.

4. Franchising Franchising: This allows you to license your brand and business model to others. This allows you to expand your business with less capital and risk. Examples of successful franchising include McDonald's and Subway.

5. Licensing: By licensing your products or services to others, they can sell them for you and you receive a slice of the profits. This model is used by companies such as Microsoft and Disney.

6. Selling Advertising Space: Selling advertising space on your website, menu, products, shop, or building can be an easy way to earn extra revenue. However, it's essential to ensure that the brands advertised don't negatively impact your brand. Examples of successful advertising space selling include Google, which generates most of its revenue through advertising. Another example is One Time Square, a building in one of New York's most popular areas makes over $60m per year selling advertising on the outside of the building (more money than they make from rentals inside).

7. Affiliate Marketing: Affiliate marketing allows you to enlist an army of affiliates to sell on your behalf. Many business owners are raking in millions by taking full advantage of this army of free salespeople (affiliates), paying them only for successful sales. Another option is to be an affiliate marketer yourself and refer your clients to others for a slice of their sale.

8. E-commerce: Selling products or services online, has become increasingly popular. This model has been successfully implemented by many companies.

9. Crowdfunding: Crowdfunding allows you to get paid for pre-selling products or services. This model has been successfully used by companies such as Kickstarter and Indiegogo.

10. Digital, Evergreen Consulting: By providing advice and expertise, you can get paid for your services. This model has been successfully implemented by companies such as McKinsey and Accenture.

11. Brokerage & Investment: By connecting buyers and sellers, you can get paid for your services. Examples of successful brokerage and investment companies include Goldman Sachs and Charles Schwab. Other examples include Uber and Airbnb

12. Marketplaces: Marketplaces such as Amazon and eBay allow you to sell products or services through their platforms, reaching a wider audience.

13. Platforms: Platforms such as Uber and Airbnb allow you to provide a service through their platform, connecting you with potential customers.

14. Normal Retail: Traditional model with physical stores selling products directly to consumers.

15. Changing from B2B to B2C or vice versa: Transitioned from supplying retailers (B2B) to selling directly to consumers (B2C).can open up new markets. A good example is Nike, a B2B giant who started selling direct to the public through their own stores and their own website.

16. Collaborative Ecosystems: Create a more collaborative ecosystem: so that the members together create more value for each other through the power of the network effect (examples include Apple iStore, LinkedIn, Tik Tok, YouTube and Udemy)

17. Combination of Business Models: By combining a number of the above business models you can outperform your competition and tap into new lucrative markets.

Which business models can you make use of in your business?

Would you like to learn even more strategies to Find Cash, Hidden In Your Business? Click here to learn more: https://www.findhiddencash.co.za/ 

Back to blog

Find Hidden Cash In Your Business - Courses and Books

1 of 4
  • How To Choose the Right Accounting Software for Your South African Business

    How To Choose the Right Accounting Software for...

    As a South African business owner, choosing the right accounting software is crucial for efficiently managing your finances and remaining tax compliant. With many solutions available today, from entry-level tools...

    How To Choose the Right Accounting Software for...

    As a South African business owner, choosing the right accounting software is crucial for efficiently managing your finances and remaining tax compliant. With many solutions available today, from entry-level tools...

  • Wave vs Anpix vs Sage vs Freshbooks vs Quickbooks Online vs Crunch Accounting vs Xero  - Guide for South African businesses

    Wave vs Anpix vs Sage vs Freshbooks vs Quickboo...

    Wave vs Anpix vs Sage vs Freshbooks vs Quickbooks Online vs Crunch Accounting vs Xero for South African businesses, which is the best one for your needs?

    Wave vs Anpix vs Sage vs Freshbooks vs Quickboo...

    Wave vs Anpix vs Sage vs Freshbooks vs Quickbooks Online vs Crunch Accounting vs Xero for South African businesses, which is the best one for your needs?

  • How To Find Hidden Cash In Your Business

    How To Find Hidden Cash In Your Business

    Many businesses overlook a valuable resource that lies within their own operations - hidden cash. Uncovering hidden cash can have a significant impact on a company's financial health and decision-making...

    How To Find Hidden Cash In Your Business

    Many businesses overlook a valuable resource that lies within their own operations - hidden cash. Uncovering hidden cash can have a significant impact on a company's financial health and decision-making...

1 of 3