In with the New: Four Non-Traditional Business Models

In with the New: Four Non-Traditional Business Models

The business model is one of the most important components of any company. With so many to choose from, consider some that thrive in modern times.

In with the New: Four Non-Traditional Business Models

This topic will be discussed with the following structure.

All entrepreneurs will need to make some critical decisions at the start of their journey. And one of these has to do with the kind of business they wish to run. This doesn't concern legalities, despite its importance in the world of business. 

Entrepreneur Business Models

Instead, it focuses more on the potential inner mechanism of the company. From the products and services offered to consumers to the clients dealt with on a daily basis, everything is affected by the business model that an entrepreneur chooses. Here are four examples of contemporary business models.

Subscription

Given the widespread influence of the internet, it's not surprising how so many entrepreneurs choose to operate online. Among the many services offered on the web, there are a few that are free for a short period before customers are asked to pay a set price for the experience they want. 

Subscription Business Model

This is referred to as the subscription model. Businesses that utilize this model earn their profit through their customers' recurring payments, either monthly or annually. This kind of model can apply to various industries -- from entertainment with streaming services to beauty with curated cosmetics boxes.

Human Capital

Certain business models thrive thanks to the efforts of the workforce within the organization. There are companies that have in-house hiring teams, while others depend on third-party entities to supply their need for skilled and knowledgeable employees. 

Human Capital Business Model

These entities are businesses that apply the human capital model. Businesses in charge of supplying human capital oversee the screening process, ensuring that their clients receive the best personnel for the job. The best example of which is any manning agency in the Philippines.

Online Marketplace

A marketplace is a location where businesses congregate as customers browse every stall. Now, this business model has been modernized and implemented online. Sites like Amazon and eBay are examples of online marketplaces. 

Online Marketplace Business Model

These allow entrepreneurs to post listings of their products, categorized depending on functionality. This allows for ease of browsing for the consumers. The online marketplace is a model that takes time to grow, though. It's comprised of various elements that require easy flow for better consumer experience. Aside from the uncontrollable smaller businesses, there are also paying and shipping methods to consider.

Freemium


The internet is stock full of sites offering free services to the public. However, revenue still needs to be made for these sites to continue to operate. Aside from the different forms of advertisements, there's also the freemium model to consider for businesses who wish to offer free services. Great examples are Google Drive and YouTube. Both are accessible and can be used without payment, but they do have some limitations. 

Freemium Business Model

YouTube, for example, has ads playing before every video. This element can be eliminated when one pays for YouTube Red, but it's not required. Unlike subscriptions, freemiums can be made for however long the consumer wants without having to pay. Given these, it's important to note that business models are kinetic. They continue to evolve over time; it just depends on how a business wishes to go about its operations.

What You Should Read Next

The following articles are related to in with the new: four non-traditional business models.

Customer acquisition is important even in online businesses. Read on to learn some easy ways to improve your customer acquisition strategies.

Confused about what type of business structure is best for your startup? Here's a guide on 3 of the basic types of business entities for your business.

Running a small business, doesn't mean you have to think small and close yourself off from opportunity. Here are some tactics that can thrive your business.

Proven digital marketing techniques can grow your business in no time. And you will have several options to help improve brand awareness and profits.

It took quite a while before the public welcomed online banking with open arms. But can you imagine how transactions were done back in the day?

With the rising digital age, people are passionate developing websites and apps. Tech incubators are there to help startups gain traction in the industry.

While traditional marketing still has its place, digital marketing tactics can help small businesses grow further and explore new heights.

Thinking about what you should outsource when it comes to your business? Take a look at this to see which departments you should consider outsourcing.

Business plans are the backbones for a business to succeed. Don't believe us? Read the blog to know the reasons.

In with the New: Four Non-Traditional Business Models
Darryl SHELTON
Darryl SHELTONMember since
Jan 17, 2018
Loading...
Did you find this helpful?
Contact Us
Share your COMMENT!

Share your thoughts and feedback on In with the New: Four Non-Traditional Business Models

Ask any questions directly to Darryl SHELTON and the community!

By using this channel you approve that you agree on our Terms and Conditions

Loading...