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Have you already learnt all the business models that exist? Is it necessary to make a strategic plan? The answer to both questions is… yes!
As a business leader, you must define the plan and the business model you are going to follow in order to know first-hand what your DNA is. That is, you need to know what you are going to offer to the market, to what type of customers, how you are going to make and sell it and how you are going to generate incomes.
So, if you are still not sure which of the many business models out there best fits your business expectations, then keep reading!
These are the seven examples that from Lexington we believe you may be interested in before launching your business idea:
1. Subscription Business Model
The subscription business model is a strategy where customers pay a regular fee to access a product or service.
Both Netflix and Spotify are notable examples and have revolutionized the way people access and consume content. Not only have they transformed the entertainment and music industry, but they have also become benchmarks for other companies.
2. Marketplace Business Models
Marketplaces are online platforms that connect sellers and buyers of goods or services.
Airbnb or Uber platforms have been pioneers within the sector because they are easy to use, generate trust through rating systems and reviews, as well as protect the consumer.
But where does the magic come from? What justifies this revolution? In its ability to empower the collaborative economy, i.e., people sharing their assets and generating additional income.
3. Freemium Business Models
The freemium model is a business strategy in which a product or service is offered for free, but with the option to pay for additional features or a premium version with more advanced configurations.
Numerous companies have adopted this model, such as Dropbox and LinkedIn, achieving benefits in brand awareness, user acquisition and revenue generation.
4. Crowdfunding Model Business
The crowdfunding business model is based on fundraising through a community of people interested in financing projects, products or initiatives. Projects are presented on platforms such as Kickstarter or Indiegogo, while users contribute money to support them.
5. Affiliate Business Models
If you usually buy products on Amazon or plan your trips with the help of TripAdvisor, you probably understand how an affiliate business works. This model consists of a company (or ‘affiliate’) promoting products or services of another company (or ‘advertiser’) in exchange for receiving a commission for each sale.
6. Customized Manufacturing Business Models
This is an innovative business model focused on providing unique and customized products to customers. Unlike mass production, custom manufacturing allows to meet the individual preferences of each customer.
Warby Parker offers a customization service for its products, just as Nike By You lets customers choose every detail to create a unique shoe. These types of businesses generate value for customers and, above all, differentiate themselves from other companies in the market.
7. Content Platform Business Models
The way we consume and create content has changed and, therefore, so have today’s digital platforms.
The new content platform business model allows users to share, create, monetize and consume content online. Undoubtedly, examples such as YouTube or Medium show us that this model is a success.
You already know more clearly what business model can fit with your plans, don’t you? Now, you just need to look for a space to host and promote these innovative projects, such as, for example, Lexington’s offices in Madrid and Barcelona. Let’s get to work!