What Are All The Business Models Known To Date?

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There are as all kinds of business models out there, different ways of defining a business model, and a single business can operate under multiple models. To understand a business model, focus on the following questions:

  • What is my product?
  • Who is my customer?
  • How is my team organized?

Below are some of the most common models. You’ll see the above factors come into play, and I’ll highlight the defining attribute for each:

  1. Manufacturer – You take resources or raw materials and create a physical product. You may sell as a wholesaler, a retailer, or both. Subaru manufacturing cars is a good example.
  2. Wholesaler – You could be a manufacturer, or you could be a “middle-man” who gets product from a manufacturer and distributes it to retailers or the end-user. Subaru dealerships are an example.
  3. Retailer – You purchase products from a manufacturer or wholesaler and sell them to the end-user. Retailers utilize their presence and network. For example, Amazon buys or sources from many places and sells to the public.
  4. Franchise – You could be any of the above three. You purchase the right to use an established brand, product and process, run your own business, and pay royalties to the parent company. McDonald’s is a classic example. Individuals purchase the right to operate a McDonald’s restaurant.
  5. Multi-level Marketing – These companies are generally retailers, but the organization structure is different. You earn a percentage of anything you, or any of your recruits, sell. So, you are rewarded for recruiting. Amway is a famous example.
  6. Subscription – You provide a software service or a content product and individuals pay to receive it on a recurring basis. Newspapers are a good example.

There are more ways of looking at this as well, so consider your product, customer, and team. My favorite is #6, because the customer can pay as long as they are receiving value, and the business can predict its revenues easier.

If you want to learn more about how to plan this type of business, get a FREE copy of my Amazon #1 best-selling book here!

Author: Steve Buller

Steve owns the E-learning brand I Quit My Job To Help You Quit Yours. He teaches people how to leap from employee to entrepreneur: 1) Learn how to make money on day 1 through affiliate sales, and 2) Learn how to build an online business in an area you love to generate automated income until the end of your days. Steve has started multiple businesses and operated one franchise. His passion is leveraging his experience to help people get away from the toxic corporate environment and live a life of more impact, freedom, and fun. Steve has his Masters in Professional Accounting and is a licensed CPA in the state of Washington. After starting his career in public accounting with Ernst & Young, he worked with multiple tech and biotech companies in the Seattle area. He worked as the Financial Controller, directly under Bill White, CFO at Intellicheck Mobilisa, a public company traded on the NASDAQ.

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