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Questions and Answers
What is the primary focus of the selling a product model?
What is the primary focus of the selling a product model?
- Building a large and engaged audience
- Capturing value through pricing (correct)
- Differentiating and niching down
- Growing the assets under management
Which model involves renting out a product or service to someone else?
Which model involves renting out a product or service to someone else?
- Selling a service
- Taking a commission
- Selling a product
- Renting something out (correct)
What is the primary benefit of the subscription-based model?
What is the primary benefit of the subscription-based model?
- Building a large and engaged audience
- Differentiating and niching down
- Predictable revenue stream (correct)
- High utilization rates
Which model involves acting as an intermediary between buyers and sellers?
Which model involves acting as an intermediary between buyers and sellers?
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What is the primary focus of the pay-per-use model?
What is the primary focus of the pay-per-use model?
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Which model involves offering expertise or skills to customers?
Which model involves offering expertise or skills to customers?
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What is the primary focus of the advertising model?
What is the primary focus of the advertising model?
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Which model involves managing assets on behalf of clients?
Which model involves managing assets on behalf of clients?
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How many models of business are there?
How many models of business are there?
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Which of the following is an example of the subscription-based model?
Which of the following is an example of the subscription-based model?
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Study Notes
Models of Business
- There are 8 models of business:
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- Selling a product (physical or digital)
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- Renting something out
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- Taking a commission (marketplaces and platforms)
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- Subscription-based model
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- Pay-per-use model
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- Selling a service
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- Advertising model
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- Percentage of assets managed model
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Selling a Product
- Creating value for the customer
- Capturing that value through pricing
- Delivering the value through the process
- Example: selling a physical product (e.g., clothes) or a digital product (e.g., a course)
- Focus on unit economics (cost-efficient production and pricing strategy)
Renting Something Out
- Renting out a product or service to someone else
- Focus on high utilization rates to maximize revenue
- Examples: renting out a studio space, a department, or a car
Taking a Commission (Marketplaces and Platforms)
- Acting as an intermediary between buyers and sellers
- Taking a commission on each transaction
- Examples: Cambista (currency exchange), payment gateways, and online marketplaces (e.g., Upwork)
Subscription-Based Model
- Offering a service or product on a recurring basis
- Predictable revenue stream
- Examples: software as a service (SaaS), streaming services, and fitness gyms
- Focus on customer retention and engagement
Pay-Per-Use Model
- Charging customers based on their usage
- Examples: cloud storage, Amazon Web Services (AWS), and messaging apps
Selling a Service
- Offering expertise or skills to customers
- Focus on differentiating and niching down
- Examples: consulting, coaching, and freelance work
Advertising Model
- Offering a platform or audience to advertisers
- Focus on building a large and engaged audience
- Examples: Facebook, Instagram, and influencer marketing
Percentage of Assets Managed Model
- Managing assets on behalf of clients
- Taking a percentage of the assets as a fee
- Examples: investment platforms, hedge funds, and wealth management firms
- Focus on growing the assets under management
Models of Business
- 8 business models exist, each with its unique characteristics and revenue streams
Selling a Product
- Creating value for customers through physical or digital products
- Capturing value through pricing strategies
- Delivering value through efficient production and logistics
- Example: selling clothes or online courses
Renting Something Out
- Renting out products or services to customers
- Focus on high utilization rates for maximum revenue
- Examples: renting out studio space, departments, or cars
Taking a Commission
- Acting as an intermediary between buyers and sellers
- Taking a commission on each transaction
- Examples: currency exchange services, payment gateways, and online marketplaces like Upwork
Subscription-Based Model
- Offering services or products on a recurring basis
- Predictable revenue streams through customer retention and engagement
- Examples: software as a service (SaaS), streaming services, and fitness gyms
Pay-Per-Use Model
- Charging customers based on their usage
- Examples: cloud storage, Amazon Web Services (AWS), and messaging apps
Selling a Service
- Offering expertise or skills to customers
- Focus on differentiating and niching down
- Examples: consulting, coaching, and freelance work
Advertising Model
- Offering a platform or audience to advertisers
- Focus on building a large and engaged audience
- Examples: Facebook, Instagram, and influencer marketing
Percentage of Assets Managed
- Managing assets on behalf of clients
- Taking a percentage of the assets as a fee
- Examples: investment platforms, hedge funds, and wealth management firms
- Focus on growing the assets under management
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Description
Discover the different models of business, including selling products, renting, taking commissions, and more. Learn how to create value for customers and capture it through pricing.
