![]() It charges its users not in money but in data. I'm sure you wonder how the owners of Google and Facebook are oh-so-rich when you have probably never paid a cent to use their services. Retailer: Through a physical or online location, the retailer purchases products from the manufacturer/distributor and sells them to the public.Distributor: This person acts as the in-between for manufacturers and retailers/customers.The sales can be taken care of by the parent company or outsourced. Manufacturer: Conversion of raw materials or assembly of pre-made parts into finished goods is the job description here.They were popular before the time of computers and spreadsheets. These are the oldest and most basic business model types. User-Generated Content Business ModelįAQ's Types of Business Models The Ancient Three Razor Blade and Reverse Razor Blade Modelġ0. I bet my non-existent Cadillac that you have heard of them.ģ. Here, comes an exhaustive but hopefully not exhausting list of business models that various companies have adopted and modified according to their needs. And that style is its business model.Ī business model is a framework that defines how you generate long-term value in terms of revenue by providing value (products/services) to your customers. Ever wonder how businesses work? What goes on behind-the-scenes? How Google makes money? Or how there's a McDonald's a stone's throw from wherever you are! Every business follows a certain style of working.
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