When beginning a startup, there are many models to choose from to create your business around. There are many new models with the rise of the Internet and mobile technology and have been proven to work for various industries. Some of these models are explained below:
Marketplace
Companies such as E-Bay, AirBNB, and Amazon have adopted this model. Relying on the Supply and Demand of the existing markets, the marketplace does not need to create products or sell services… rather they can mediate in a largely growing e-commerce sector.
Subscription
A growing number of companies have adopted this model of establishing a long-term relationship with their customers, making revenue month to month while fitting the millennials love of mobile payments. Examples of this model include the Dollar Shave Club, Netflix, Apple Music among others including companies even creating subscription coffee, candy or haircare boxes for their subscribers.
Customization
A rising group of the population is looking for customization and are overwhelmingly willing to pay more for it. From customizable features for your next car, finding your name on a Coke bottle or having your own creation 3D Printed and mailed to your door… customization is king. There is also a great movement of this trend in the fashion industry while consumers look for items that fit their specific tastes.
On Demand
The rise of companies like Uber have been dominating their industries with this new preferred model that yields instant gratification for the consumer. With the mobility of smartphones, now consumers can order services in a significantly shorter amount of time.
Freemium
We are constantly looking for free products… and the freemium model acts on this. Providing basic starter packages at no cost and then allowing the user to upgrade to access more features. An example of this is with LinkedIn’s profile account offerings… allowing a user to receive increased value from the product with a payed subscription.