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Popular Types of Business Models You Can Use
In the online segment today, most companies use the most relevant of the existing, proven business models, adapting and improving them according to individual characteristics and competitive advantages.
Review the list of these models to determine which ones you can use for your business.
- Advertising. A fairly old model used in media, it has gone through many stages of change as content has moved from print to online. In the advertising model, there are two groups whose needs must be met:
- readers (viewers);
- advertisers.
The advertising business model is most effective when the niche is correctly defined or when there are large volumes of traffic.
- Affiliate marketing . An affiliate scheme is similar to advertising, but has its own specifics. It usually uses links rather than easily recognizable advertisements. Schemes can be different:
- purchasing leads from partners;
- trading banners on partner resources;
- payment for the transition of a target potential client;
- payment for the user performing a target action, etc.
Examples: Ozon, Aviasales.
Commission. An intermediary business specific database by industry facilitates transactions between a seller and a buyer by acting as a link between them. A fee is charged for each transaction from one or both parties to the transaction. Examples include real estate agencies, event companies, recruiting and PR agencies.
Retail. Online wholesalers and retailers of goods and services, retailers, catalog sellers, traditional sellers who buy products from wholesalers or distributors and sell them to a wide audience.
How to choose a business model?
This list can go on and on, but the main thing that aspiring entrepreneurs should understand is that they don’t always need to invent something new that involves high risks. Using tried and tested business schemes that have proven their effectiveness can significantly simplify their development.
7 Questions to Help You Choose the Right Business Model
Costs of creating and developing a product (production, labor, raw materials, design, etc.). Costs of organizing sales (marketing, promotion, provision of services, trade).Method of obtaining profit (pricing strategy, payment methods and terms, etc.)Thus, the essence of an effective scheme comes down to a simple thing – to get more profit than spent on creating a product at all stages. Difficulties begin at the stage of choosing a suitable option, and here 7 questions for its assessment will help you.
The business model structure itself consists of three elements:
Analysis and selection of a business model dating data is a serious and extremely responsible step. If a startup has already set foot on this path, he must move only forward, without retreating from the intended goal and not losing sight of it for a moment. A model that is competitive today may turn out to be outdated tomorrow if you have failed to develop an understanding of existing market conditions and market development trends.
Regular assessment of your business management methods, as necessary as an annual preventive medical examination for human health, will allow you to promptly assess your situation and adapt to changing conditions.