Business theory can be tricky to understand. Leave it to the power of one cow to help you grasp the workings of these popular business models.
A direct sales business operates through a network of salespeople. Typically there is no fixed retail location.
Examples: Avon, Mary Kay, Traveling Vineyard
A business under a freemium model gives away a service at no cost before offering advanced services as add-ons.
Examples: Dropbox, Hootsuite, MailChimp
The objective of a subscription business model is to retain customers under a long-term contract and secure recurring revenue.
Examples: Netflix, eHarmony
Under a franchise business model, business owners purchase another organization’s business strategy.
Examples: McDonald’s, Subway, Starbucks
Loss leader model is a strategy in which a store sells selected goods below cost in order to attract customers who will make up for the losses on more expensive products.
Examples: Samsung, O2, Microsoft
Good or services are sold to customers that are typically centered around online platforms. They often offer delivery in a short timeframe.
Examples: Uber, Airbnb, Instacart
A unique business model where customers pay for the time in a location and not for extra items such as coffee.
Crowdsourcing is the practice of engaging a ‘crowd’ to contribute collectively to a project or cause.
Examples: Zooniverse, MyMachine
It goes to show that the simplicity of one humble cow can help you learn the operations of many businesses today.
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Hi, my name is Jennifer. I'm based in Chicago and I'm the social media and content manager for The Business Backer. I write about entrepreneurship, small business management, and new and creative ways to run a profitable company. You can find me on LinkedIn.