Revenue Models
Offer a basic product at a low price. Charge for additional features, services, or upgrades.
Ryan Air Ultra-cheap flight tickets with fees for baggage, seat selection and priority boarding.
What is Add-On?
Encourage repeat business by offering rewards, discounts, or exclusive perks to recurrent customers.
Starbucks Rewards app.
What is Customer Loyalty?
Sell a memorable experience, not just a product.
Nike's 'House of Innovation' stores transform shopping into interactive adventures.
What is Experience Selling?
Business expansion strategy when a company licenses its brand, business model, and support to independent operators, who run locations under the same brand.
Mc Donalds
What is Franchise?
Exchange goods or services without using money.
Simbi, exchanging services for other services or credit.
What is Barter Economy?
Products or services are sold to the highest bidder.
Ebay popularized it online.
What is Auction?
Owns and controls multiple stages of its supply chain, from raw materials to manufacturing, distribution, and even retail.
Tesla manufacturing its own batteries in Gigafactories. It also operates its own stores and charging stations.
What is Integrator?
Convert waste into valuable products.
Patagonia's 'Worn Wear' program repairs and resells used outdoor gear.
Enables direct transactions between individuals.
Vinted facilitates sales between users and earning a commission on each sale.
What is P2P?
The core product appears free or underpriced, but the company earns indirectly—usually through advertising, data, or third-party payments.
Google adwords.
Customers pay recurring fees (monthly, annually) for continued access to a product or service.
Netflix charges a monthly flat fee to offer their services.
What is Subscription?
Charge wealthier customers more in order to subsidize costs for lower-income customers.
Warby Parker glasses, giving away free glasses to people in need on every purchase.
What is Robin Hood?
Manufacture products for other brands to sell under their own brand.
Entrepedia sells several ebooks from different areas you can add your brand, change the cover, and focus on marketing.
What is White Label?
A company or individual raises funds by collecting small contributions from a large number of people, often in exchange for early access or rewards.
Pebble Watch raised over $10 million via Kickstarter.
What is Crowdfunding?
Shift part of the work to customers to cut labor costs and speed up service.
McDonald's self-order kiosks.
What is Self-Service?
Offer a basic product or service for free to attract users, then charge for advanced features, services, or premium experiences.
Spotify offers a free tier with ads and limited functionality.
What is Freemium?
Companies offer reliable uptime, priority service, or availability, ensuring that customers never lose access to their product or service.
Amazon Web Services promising businesses 99.99% uptime
What is Guaranteed Availability?
Offer a comprehensive solution rather than a single product.
DHL holistic services from door to door. Document management and cargo transportation.
What is Solution Provider?
Company leverages another company's platform to reach customers.
Uber uses Google Maps to provide customer services.
What is Piggy Back?
Avoids direct confrontation by redirecting a competitor's strength.
Cirque du Soleil strategy.
What is Aikido?
Sell a core product at a low price (or loss), but make a profit on the consumables needed to use the product.
Printers sold at low prices. Proprietary ink cartridges generate ongoing revenue.
What is Razor and Blade?
Focuses on managing and coordinating a value chain without directly owning the assets.
Apple focuses on R&D and branding while Foxconn handles manufacturing.
What is Orchestrator?
Offer a wide range of products in one place, creating convenience through comprehensive selection.
Leroy Merlin customers can find everything they need for home renovation, DIY, and construction in one store.
What is Supermarket?
A brand leases space inside another retailer’s store to create its own “shop” experience.
Samsung has dedicated spaces inside Best Buy stores
Capitalizing on the cumulative value of niche markets.
Amazom selling over 350 million products.
What is Long Tail?