Types of Business Models

Business model is something that almost every business needs; it can be used to sell an idea, to get the attention of clients or customers and to generally be a business. Even in the beginning, when your business is new, still having a business model is a must. But what kind of business model is right for your business? Well, that is just what this is about.

There are nine different Business Models to expand or create your business. You can choose whichever suits you best.

1. Utility Business Model: The utility business model is for businesses that are on a pay as you go type of plan, like the popular cell phone parents buy for their teenagers “Go Phone.” This type of model explains how you will attract customers to use you service.

2. Community Business Model: The Community business model is a model that explains how a business that uses a community to earn money works. For example an MLM uses this type of business model to explain how you can earn residual income by having people below you working for you.

3. Direct Manufacturer Model: The Direct Manufacturer model that shows how an independent producer of a certain product can reach niche of prospects interested in the related product.

4. Brokerage Business Model: Brokerage Models should show how a broker plans to make the most commissions/money conducting a certain type of business like consumer to consumer relations.

5. Advertising Business Model: The Advertising model should demonstrate how a provider of a website or store plans on generating revenues for both the store and the advertiser.

6. Merchant Business Model: Merchant models are models that show how a merchant is going to reach sellers and buyers alike and make money while doing so.

7. Affiliate Business Model: An Affiliate model should show a potential affiliate how much money they can potentially earn by advertising their product or services.

8. Infomediary Business Model: The Infomediary model should prove a given market to be highly profitable.

9. Subscription Business Model: And last but not least is the Subscription model which should show how a subscription based business plans on getting participants and also how much it plans to make per month per subscriber.

Your business should fall into one of these categories and making sure that your business model meets the business world properly you should do some selective research on your specific business model type.