Business model: what is it, their main types and how to choose the optimal one

A business model serves as a logical and visual representation of how a company functions at all its levels, how it creates favorable conditions for customers, how it ensures the required level of sales and corresponding profit.

<p>You can clearly imagine the essence of the need to create a business model if you try to put your entrepreneurial ideas on paper using graphs and diagrams. This is much more difficult to do than to come up with an idea and voice it in words. But only in this form do your thoughts and plans acquire real features and can be understood by others and analyzed.

class=”wp-block-heading”>Popular Types of Business Models You Can Use

In the online segment today, most  telemarketing data 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.

1. 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.

s its own specifics. It usually uses set up for your business  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.

3. Commission. An intermediary business 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.
4. 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.
5. Crowdsourcing. This model is  awb directory relevant when you have managed to unite many people who supply your resource with content. It often goes in tandem with the advertising format, but there are other options for generating income. Using competent incentives, companies can attract a wide audience to solve their problems.
6. Manufacturer. Within the framework of this business model, the entrepreneur independently produces and independently sells goods, eliminating or reducing distribution channels to the maximum. Options for making a profit:

• standard sale with transfer of title;

• lease with payment for the use of goods and their return upon expiration of the contract;
• a license with the transfer of rights of use under agreed conditions and without the seller losing ownership rights;
• branded content is the independent creation of materials and online resources for marketing purposes.

7. Franchise. The practice of using another company’s already proven, successful, and effective business model instead of creating your own is now widespread in a variety of industries. The franchising model involves selling a strategy for launching and subsequently running a successful business with access to a brand and support services. The seller essentially trades access to his own effective methodology.
8. <strong>Low -touch. The method with a low level of service (minimal employee participation in the process of selling a product or service) allows the company to offer consumers relatively low prices. This model has obvious advantages – an affordable cost of attracting a buyer due to the minimization of costs for expensive manipulations on hiring and maintaining a team.
9. “Razor and blade”. This model got its name in honor of the product that allowed its development. The essence is this – selling a durable product close to cost price in order to make a profit by selling its disposable additional components. The buyer of an inexpensive razor automatically becomes a regular buyer of blades in the long term. He enters into a system of constant interaction with the company with a guarantee of a large number of additional purchases.
10. Marketplace. Marketplaces can be used for both goods and services, with income coming from different sources:

• • • fees charged to buyers and/or sellers for completing transactions;
    • payment for additional services;
    • placement of advertising banners, etc.

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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

The business model structure itself consists of three elements:

• • • 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.

Analysis and selection of a business model is a serious and extremely responsible step. If a startup has

Regular assessment of your business management methods, which is as necessary as an annual preventive medical examination for human health, will allow you to promptly assess your situation and adapt to changing conditions.