10 Business Models for Every Entrepreneur:
Every business has a different model of how they make money today we’re going to talk about the ten different business models of how to build your business around all right before I get into it if you haven’t so let’s get right into these ten different business models of how to generate revenue there are many ways of doing it but these are ten different models.
Free Product:
Free product is when you give the product away for free a lot of times people wonder why are they giving away the product for free because they make money on the back end of advertising example; on YouTube many companies do this this is one of the to increase the reach the target audience.
Freemium:
Freemium the second model is the freemium model with the pay-for-upgrade LinkedIn is free but if you want to upgrade you have to go and subscribe to a certain cost it’s an upgrade of 24.95, 49.99 but you start up at a freemium so you have the large number of customers based which is helpful to growth of your business.
Price based on Average Value of Customer:
Business model number three is pricing based on average value to the customer meaning so you got you have five different customers right maybe health insurance it may be auto insurance somebody may be a great driver they don’t have any issues somebody may be a terrible driver they have a lot of issues they average that out.
And come up with a price point that’s average to the customer and some may be paying a little bit higher some may be paying a little bit less but it is what it is like health insurance when it came out recently they said well why am I paying so much insurance when I’m younger and I’m healthy I don’t have any issues?
You kind of paying for the insurance or the people that are not healthy but they’re getting it so it’s the the average cost for the product they’re selling bucks you sell it for 40 bucks right.
Price Based on Cost Plus Margin:
fourth model its price is based on product cost plus margin this is Traditionally you buy these pants for twenty dollars you sell them for thirty dollars you buy this you know whatever product you get for fifteen bucks you sell it for 40 bucks right
Price with Recurring Low Subscription and Payment:
The fifth model is the price with a recurring low subscription payment hence Netflix is a very common model today people say Netflix is $7.99. 999 1290 that’s not a lot of money times 850 million customers it’s a lot of money.
Tiered Pricing Based on Volume:
The sixth business model is basic tiered pricing based on volume real estate how much you buy how much is your volume the more you buy the less we charge you know if you’re if I’m getting a commission contract with an insurance company if you sell this many policies will give
you this much but if you sell more will give you more so it’s all volume-based the more you do the more leverage you have for an Oshin the more you do the more the less the cost is going to be to the customer because you’re banking on the volume number.
Revenue as a Percentage of Every Transition:
seven is revenue as a percentage of every transaction Commission Okay that’s a commission that they’re doing the revenue comes from a commission-base that they’re paying out a number just like the money transfer mobile app that detects a small amount of money at every transaction either deposit or withdrawal.
Low Product Price but Support is Extra:
Eight is a low Support product price but support it’s extra this is everywhere the product isn’t
that much but if you want the extra support here’s $99 per year or 999 dollars for all that stuff that additional that they tagged on number nine low entry price.
Low Entry Price With Priced Feature Additional:
The ninth is a low entry price with priced features additional so you’re buying a car this car right here I just bought a car and it’s being delivered right now but if you want to add this and if you want to add this and if you get this it’s all the additional add-ons that you have right that’s the additional adults.
- Low Price Base Make On Disposable:
last but not least number ten is very simple low price but money is made based on disposable so I sell this razor stick and I sell it to you for 10 bucks but I know you got to come and buy the razors every time you don’t shave it.
Because it goes from green to white you have gone a buy I’m making my money on disposable it’s a very big Procter & Gamble type of a business model but it’s very effective again it’s all about how you want to set up your business model to generate revenue there are many different ways of doing it.
these are ten of the ways to do it if you want the PDF today either text me on three one zero three four zero one three two and text me and say business.