Use 4 types of business models to differentiate your business
There are dozens of business model types. Most likely, you would choose between one to several business models. Choosing the wrong business model can lead to losing money, business shrinking and in some cases even to be closed.
The question is how to choose the right business model for you?
It depends on financial factors related to marketing.
Who is your target audience?
What is the most suitable system's payment from them?
What is their budget top limit?
How much resources (money, time, effort) you spend on producing the product, marketing, selling, customer service, delivering, and many more?
What is the fixed cost?
What was the first investment?
When you know the answers, then you can start building your business model. You can also watch a video on this topic here.
Business model types, the one-time payment
This is the simplest and one of the most common systems of payment.
The customer pays one time on your service. It can be clothes, electrical devices, even a car or an apartment.
Business model types, fixed monthly payment
This is also a common system of payment.
This business model is well accepted in the service industry. You pay monthly the same amount of money and in return, you receive a service. For instance: communication services, insurances, subscriber fees, loyalty program fees, and so on.
Business model types, participation in the customers' growth
This is a more unique business model. You can't use it when the contribution channel is to private customers or public organizations. It can be used only for B&B contribution channel.
It is being used in business consulting services, accounting, legal advice for companies, and sometimes even in advertising and marketing services.
Business model types, gradual business model
This model is extremely important if you are a web builder or digital marketer. Here you charge money for the customers' success. Meaning that customers pay an additional amount of money for each milestone being reached.
As a web builder You can determine that for each additional 1000 visitors on the customer website you would receive a bonus of 500 dollars.
