Title - Business model definition and examples Tags - businessmodel strategy
A business model is the means you use to implement your strategy.
E.g. in the early days of the internet, the dominant business model was “first-mover-advantage” and “buy-critical-mass,” then figure out how to monetize or profit later (think Twitter).
Example of a one-and-done business model:
- Advertise or direct mail market to get leads.
- Convert leads to a one-time sale.
- Do nothing else with leads or customers.
Example if a more sophisticated model:
- Use advertising, direct mail, strategic alliances and more to generate leads
- Convert leads into customers with an entry offer
- Sell other peoples products to unconverted leads
- Upgrade customers to a core offer
- Upgrade customers to a subscription offer
- Sell complimentary products and services from other peopler
- Multiple customers with referral systems