10 Business Models for Every Entrepreneur 2021

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10 Business Models for Every Entrepreneur 2021

Every business has a different model of how they make money. Today, we’re, going to talk about the ten different business models of how to build your business around.

Get right into these are ten different business models of how to generate revenue. There’s, many ways of doing it, but these are ten different models.

1. Give the product away for free a lot of times.

Image_57People wonder why are they giving away the product for free because they make the money on the back end of advertising? Example YouTube. Many companies do this. This is one of the models.

2. The Freemium model, with the pay for upgrade.

Image_58LinkedIn is free, but if you want to upgrade, you got to go and subscribe to a certain cost that they have right. It’s, an upgrade $$24.95, 49.99, $99, $95, but you start up as a Freemium.

3. Pricing based on average value to customer meaning.

Image_59So you got five different customers right and maybe health insurance. It may be auto insurance. Somebody may be a great driver. They don’t have any issue. Somebody may be a terrible driver, they have a lot of issues.

They average that out and come up with a price point that’s average to the customer and some may be paying a bit higher. Some may be paying a little less, but it is what it is like the health insurance when it came out recently they said well, why am I paying so much insurance? When I’m younger and I’m healthy? I don’t, have any issues you’re kind of paying for the insurance or the people that are not healthy, but they’re getting it. So it’s, the average cost for the product they’re selling.

4. Price based on product cost plus margin.

Image_60This is traditional. You buy these pants for twenty dollars. You sell them for thirty dollars.

Furthermore, you buy this. You know whatever product you get for fifteen bucks, you sell it for 40 bucks right number.

5. Five is price with recurring low subscription payment;

Image_61Hence, Netflix it’s, a very common model, Today people say Netflix $7.99, $9.99 That’s not a lot of money: they have 850 million customers, it’s a lot of money number

6. Tiered pricing, based on volume

Image_62so real estate, how much you buy? How much is your volume, the more you buy? The less we charge you, you know if you’re.

If I’m, getting a commission contract with an insurance company, if you sell this many policies will give you this much, but if you sell more, will give you more. So it’s, all volume based the more you do, the more leverage you have for negotiation, the more you do, the more, the less the cost is going to be to the customer, because you’re banking on volume.

7. Revenue as a percentage of every transaction commission.

Image_63 Okay, that’s, a commission that they’re doing the revenue comes from a commission base that they’re, paying out

8. Low product price, but support it’s extra.

Image_64This is everywhere the product isn’t that much, but you want the extra support here’s $99 per year or $99.9 all that stuff.

9. Low entry price with priced features additional.

Image_65So you’re buying a car this car right here I just bought a car, and it’s being delivered right now. But if you want to add this – and if you want to add this – and if you get this, it’s, all the additional add-ons that you have right, that’s, the additional adults and, last but not least

10. Low price, but money is made based on disposable.

Image_66So I sell this razor stick and I sell it to you for 10 bucks, but I know you got to come and buy the razors every time you don’t shave it because it goes from green to white. You got ta buy. I’m, making my money on disposable.

It’s, a very, very big Proctor & Gamble type of business model, but it’s very effective. Again. It’s all about how you want to set up your business model to generate revenue there’s, many ways of doing it.

You want to go to the marketplace and compete. What do you want to compete with? Who do you want to compete with? How do you want to differentiate yourself to go up against the bigger companies?