Skip to content
Startup Secrets Sandbox
- Pages
Business Model Examples
By exploring and considering how business models can rewrite the rules for monetization, startups can position themselves for early breakout and Repeatability as well as long-term Sustainable, Valuable and Profitable growth that is not only Disruptive but Defensible. (See )
Business model innovation is often the key to unlocking new markets, creating new revenue streams, and disrupting traditional industries. Here’s an example comparing Microsoft, Google and Apple business models.
To help you think about how you can create a disruptive business model for your startup, below are examples that showcase a diverse range of business models leveraged across various industries. It’s by no means an exhaustive set of examples, but hopefully it will inspire you to think differently!
To uncover a powerful startup secret about business models, read this:
Business Model Examples in High-Tech
Business Model
Explanation
Examples
Software as a Service (SaaS)
Delivery of software applications over the internet on a subscription basis
Salesforce, Shopify, Zoom
Platform as a Service (PaaS)
Cloud-based platform for developing, running, and managing applications
Heroku, Microsoft Azure, Google App Engine
Infrastructure as a Service (IaaS)
Cloud-based infrastructure resources provided on-demand
Amazon Web Services (AWS), Google Cloud, Microsoft Azure
Freemium
Offering basic services for free, while charging for premium features
Dropbox, Evernote, Spotify
Ad-supported
Providing free services or content and generating revenue through advertisements
Facebook, Google, YouTube
Subscription-based
Charging customers a recurring fee for access to products or services
Netflix, Adobe Creative Cloud, Blue Apron
E-commerce
Selling products or services online
Amazon, Alibaba, eBay
Direct sales
Selling products or services directly to customers without intermediaries
Apple, Tesla, Dell
Mobile app monetization
Generating revenue from mobile applications through ads, in-app purchases, or subscriptions
Instagram, Candy Crush, Tinder
Data analytics services
Offering insights and analysis of large volumes of data to help businesses make informed decisions
Palantir, Splunk, Tableau
Artificial Intelligence (AI) as a Service
Offering AI capabilities and technologies as a cloud-based service
IBM Watson, Microsoft Azure AI, Google Cloud AI
On-demand delivery services
Facilitating the delivery of various goods or services on-demand
DoorDash, Instacart, Postmates
Virtual Reality (VR) experiences
Creating immersive and interactive virtual environments for entertainment, training, or other purposes
Oculus VR, HTC Vive, PlayStation VR
Crowdfunding
Raising funds from a large number of people, typically via an online platform
Kickstarter, Indiegogo, Patreon
Digital advertising
Displaying ads on digital platforms or content
Google Ads, Facebook Ads, Twitter Ads
Social media marketing and management
Providing tools and services to manage and promote brands on social media platforms
Hootsuite, Sprout Social, Buffer
Augmented Reality (AR) advertising
Delivering advertisements that blend virtual elements with real-world environments
Snapchat, Facebook AR ads, Google Lens
Digital wallets and payment solutions
Providing secure electronic payment methods and digital wallet services
PayPal, Apple Pay, Google Pay
Licensing
Granting permission to use intellectual property in exchange for royalties or fees
Microsoft, Oracle, Qualcomm
Open source
Distributing software with a license granting access to its source code
Linux, WordPress, Mozilla
Consulting and professional services
Providing expert advice or specialized services to clients
Accenture, McKinsey & Company, Deloitte
Hardware sales
Selling physical technology devices or equipment
Apple, Samsung, HP
Reseller or distributor model
Selling products to customers through intermediaries or resellers
Ingram Micro, Tech Data, Avnet
Franchise model
Granting individuals or groups the right to operate a business under an established brand
McDonald's, Subway, UPS
Value-added reseller (VAR)
Reselling technology products or services after adding value or customization
IBM, Cisco, Hewlett Packard Enterprise
White-labeling
Allowing other companies to rebrand and sell a product or service as their own
Slack, HubSpot, Mailchimp
Joint ventures and strategic partnerships
Collaborating with other companies to jointly develop and market products or services
Sony Ericsson (Sony & Ericsson), BMW Brilliance (BMW & Brilliance China Automotive Holdings)
Licensing intellectual property
Granting permission to other companies to use intellectual property in exchange for fees or royalties
Dolby Laboratories, Qualcomm, IBM
Experiential marketing events
Creating unique and immersive experiences to promote products or services
Red Bull Stratos, Coachella, Nike Run Club
Affiliate networks
Connecting advertisers and publishers to facilitate affiliate marketing programs
Commission Junction, Rakuten Marketing, ShareASale
Anything as a Service (XaaS)
Offering various products or services "as a service" to customers
Salesforce, Amazon Web Services (AWS), Dropbox
Virtual goods
Selling intangible digital products or in-game items
Fortnite, Roblox, Second Life
Content licensing
Licensing content, such as articles, videos, or music, for use by other companies or platforms
Getty Images, Shutterstock, Netflix
In-app purchases
Selling additional features, content, or virtual goods within a mobile application
Clash of Clans, Tinder, Pokémon GO
Data monetization
Generating revenue by collecting, analyzing, and selling data
Facebook, Google, Acxiom
Affiliate marketing
Earning a commission by promoting other companies' products or services
Amazon Associates, ClickBank, Commission Junction
Gamification
Applying game elements and mechanics to non-gaming contexts to engage users and drive desired behaviors
Duolingo, Nike+, Starbucks Rewards
Content aggregation and curation
Collecting and organizing content from various sources to deliver personalized or curated experiences
Flipboard, Pocket, Feedly
Crowdsourcing platforms
Leveraging a crowd or community to obtain ideas, services, or funding for projects or initiatives
Kickstarter, Indiegogo, Freelancer
Predictive analytics
Utilizing data and statistical algorithms to forecast future outcomes or trends
SAS, Oracle, IBM Watson Analytics
Blockchain-based services
Providing decentralized and secure digital transactions, contracts, or applications
Bitcoin, Ethereum, Ripple
Subscription box model
Curating and delivering products to customers on a recurring basis
Birchbox, Dollar Shave Club, Stitch Fix
On-demand professional services
Connecting users with on-demand professionals or experts for various services
TaskRabbit, Thumbtack, Upwork
There are no rows in this table
Don’t be afraid to mix, match, innovate and create as you consider different models. For example there’s no reason not to consider models from different industries that might apply to a new industry that has never had that business model. For example how might you use a high tech business model to disrupt a low tech industry or vice versa?
Business Model Examples - more broadly
Business Model
Description
Examples
Franchising
A business model where an independent operator (the franchisee) buys the right to use a company's trademark, products, and business processes to sell its products or services.
McDonald's, Subway, 7-Eleven
Subscription
A business model where customers pay a recurring fee, typically on a monthly or annual basis, to access a product or service.
Dollar Shave Club, Blue Apron, The New York Times
Direct Sales
A business model where products or services are sold directly to customers through a sales force, typically door-to-door or through parties.
Amway, Avon, Tupperware
Freemium
A business model where a basic version of a product or service is offered for free, with additional features or functionality available for a fee.
The Wall Street Journal, Costco, Pandora Jewelry
Pay-As-You-Go
A business model where customers only pay for the products or services they use, typically on a usage-based pricing model.
Zipcar, Rent the Runway, WeWork
There are no rows in this table
Want to print your doc?
This is not the way.
This is not the way.
Try clicking the ··· in the right corner or using a keyboard shortcut (
CtrlP
) instead.