Before starting a business, you certainly need a strategy. Many strategies must be carried out, for example, a SWOT analysis, making a business plan to recognizing a business model to determine pricing strategies.

For startups (the term for business pioneers), recognizing a business model is not something to be missed.

What is a Business Model?

The business model itself is the structure or concept of how a product is seen by consumers. With a business model, consumers can find out how your product can be produced in their hands so that it can shape the perception of consumer value.

Today there are many business models that you can apply. Setting a business model is tantamount to how you determine the value and price of your product to consumers.

One example of a simple business model is when you download a free game and have in-app purchase. Well, this includes examples of business models and is widely used by digital products such as games. Then what are other examples of business models? Check out this article!

1. Subscription

The first business model is a subscription. This business model is usually aimed at consumers who choose to spend more on one particular product.

Subscription models are also usually time-based, for example, one day, one week, one month or one year, and are also shared with economy class packages such as basic, premium, or professional packages.

Examples of subscription business models are digital entertainment platforms.

2. Freemium

This business model used to be better known as razorblade models because the originator was a shaving company by selling its shaving handles and razors separately. Where the shaving handle is given free of charge while the razor is redeemed for a certain price.

The freemium model is where you can initially get the product for free but with limited features. You can access full features by buying the product.

This business model is often found in digital products such as games. You can download game A for free but with limited access.

3. Crowdsourcing

The crowdsourcing business model relies on its customers to participate in making and designing products. The crowdsourcing business can also be said to be a combination of several users who then provide a complete solution in one product. Examples of crowdsourcing models are Shutterstock, Wikipedia, and online course applications.

4. IT Service

This business model is commonly used by startups and focuses on developing software and applications. This model is divided into three namely SaaS, PaaS, and IaaS. The first is a software as a service SaaS, where the developer company fully manages the products offered. Example: Software and attendance applications.

Platform as a Service (PaaS), is slightly different from SaaS in terms of usage. Where buyers buy in full these technologies and companies that sell as processors, providers, and data storage.

Whereas Infrastructure as a Service (IaaS) is where the provider or seller company only provides servers for data storage.

5. Peer-To-Peer

An internet-based and decentralized business model where sellers and buyers can interact directly without a third party. This business model is often found by individual business people or second-hand sellers on social media.

6. Online Marketplace

Internet business models are very popular nowadays. Where one particular party provides large-scale online shanties and is filled by a variety and many sellers. Examples of online marketplaces are Alibaba for goods, and dribbles for digital products or logos.

7. Affiliate Marketing

Affiliate marketing is a modern and sophisticated term for a broker. This business model has been around for a long time and is still popular today.

An example of this model is when you have a wedding organizer business and to consumers, you offer catering packages and also makeup that is managed by other businesses through the wedding organizer business that you are running.

8. High Touch

Business models where direct interaction is very influential. This business requires a direct human touch and cannot be replaced by a third party.

High touch model, For example, the services of organizing events, salons, therapists, or service providers.

9. Low Touch

Unlike the high touch, low touch is a business model that does not require direct human interaction in selling products. Low touch companies will usually only focus on technology development. Example of a low touch company: Google

10. Dropship

This business model in which the seller does not have a product and the seller’s role is only as a transaction door or to store goods ready to sell.

While the original product is owned by the manufacturer or supplier. The dropship business method is where when the dropship gets an order, the manufacturer or supplier immediately prepares the goods according to the order.

Usually, the dropship business model is carried out by business pioneers (startups) because it is easy to do without capital.

Read:- Online Business Strategies For Small Business

11. Agency-Based

The business model of collaboration where the company provides services in the fields of supporting product companies such as advertising, HR development services, and events. Agency companies will work with companies that need services to support their core products.

12. Data Selling

Currently, the industry is very dependent on data. Therefore many companies have begun to “sell” data to other companies as a source of potential markets. Sales of data are what gave birth to personalized selling. Where consumers often get products without having to look for them.

13. Aggregator

This business model can be said to be new where a company simultaneously sells a variety of more niche product services in one company brand.

The aggregator business model that we can now meet is an online motorcycle taxi that also provides a variety of services such as e-wallet, courier, and food delivery.

14. Advertisement

The business model where companies rely on advertising weather services as their income. Usually, this model is owned by digital media such as YouTube, The Guardian, Forbes where their content can be accessed for free but inserted with advertisements.

15. Franchise

Another name for this model is franchising. This business model is quite popular in India. This model system is where the franchisee ( franchisor ) sells and provides some of the rights or trademark to franchisees ( franchisees ). Franchisees buy trademarks, materials, and equipment owned by the franchisor.

The role of the franchisor to the franchisee is also in the form of training so that the quality standards are the same as the products given by the franchisee.

16. Brick and Mortar

Brick and mortar is a traditional business model where sellers, retailers, large producers, and consumers interact face-to-face directly in transaction places such as markets, stores, or direct production sites. Usually, the products sold with brick and mortar models are products that cannot last long.

17. Brick and Click

Slightly different from brick and mortar, the brick and click business model is a model where transactions can be done online and offline. Transactions can be done at the place of transactions such as shops and can also be done online such as websites and social media. An example of this model is a clothing distribution.

18. E-Commerce

If brick and click transactions can be done offline and online, e-Commerce is a business model where transactions are carried out in full online or online. The seller does not sell merchandise directly or offline.

19. Nickel And Dime

Nickel and Dime is a business model that uses revenue management or yield management. Where the company will focus more on revenue than other services. Businessman nickel and dime -focused consumers are very sensitive to price.

Businessman nickel and dime typically target a more niche market and often make trade-offs when pricing. Where to get maximum income, the company will reduce prices as low as possible by reducing product quality. Examples of nickel and dime models are low-cost airlines or cheap car manufacturers.

20. Manufacturer

The manufacturing business is where producers directly sell finished goods to consumers or brokers. Examples of businesses that sell products directly: office equipment and production equipment.

21. Distributor

This model is where the seller buys the product directly to the manufacturer (manufacturer) and sells it back to the retailer. Example distributor: car dealer.

22. Retailers

Retailers are entrepreneurs who sell products to consumers whose goods come from distributors or wholesalers.

That’s the basic business model that startups need to know. For those of you who want to start a business, make sure you can adjust to the product you are going to sell, whether your product is digital, technology and information services, services, or finished products.


You also need to remember again that identifying and applying a particular business model is also a good way to get the right customers for your product.

Also, make sure you use accounting software as a means of ease in snaking your business and of course helps you in organizing and making financial reports.