Every person wants to do a business which makes him a good and high profit. We can say that a good profit means a handsome cash flow. A lot of people start a new business but the majority of them get failed to achieve their desired goals. There may be hundreds of reasons that let their business down. The most prominent reason is weak business strategy or poor business ideas whereas sometimes poor management is a factor for the decreasing of a business. To highlight the most common business models to make a profit, we have listed some of the common businesses below:
Ad-based Business Model
The ad-based business model means to advertise the different types of advertisements at various platforms. You can create ads for a specific website, apps, service or other products. You can place ads on strategic or high-traffic channels. If you own a website, app or a web-based company then you can easily earn the revenue from one of the most known Google’s products, Google AdSense. Google AdSense will make a profit for you according to the ratio of visitors. Many bloggers, YouTubers as well as websites owners use to take advantage of creating revenue from Google AdSense.
Affiliate Marketing Model
Another popular business model is a web-based revenue generator which is performed by referring a link to a product. Simply you just to have to share a specific link on your website, blogs or any other community group with high traffic rate. Moreover, you will earn commission on the sales of those products which is affiliated. Many popular companies are offering affiliation marketing including Amazon, AliExpress and eBay. Affiliate marketing is not included only in a physical product; it also includes services and web-based work.
Subscription Revenue Model
The subscription revenue model means that you sell a subscription to your customer regarding service in-app, website or any other web-based service. This usually happens by giving the trial version of service to your company and after the trail service ends, you ask the customer for subscription to using more. The subscription can be month by month or even year by year. The biggest example for the Subscription revenue model is Netflix on which you are allowed to access the trial version for one month and after using it for one month; you need to buy the subscription for month or year.
Selling service but the product is free
Most of the popular technology companies are making revenue from this type of business model. These companies offer their products for free but they don’t offer services for free. The most common company who are doing this business includes Adobe and Oracle. Adobe offers free download for their software but after the downloading or after the trial version ends, Adobe demands their customers to buy the subscription for using their software. They generate revenue from the company on account of installation, customization, training or other additional services.
Premium Service Revenue
The premium model is one that includes the company’s service for free but if the customer wants to enjoy additional services then they need to upgrade by buying additional services from the developing company. This model is applied by most of the gaming companies which ask for the premium service if they want more resources. Like most of the car, games ask for the premium subscription if they want more cars or maps in the game. A similar case is with entertainment apps like Netflix, if you want more user access in Netflix then you need to upgrade your account.
Over the internet, there are millions of people who need support over different issues like technology-based. They ask for the issue on specific supporting website and the experienced persons use to solve their problem by getting paid. This support can be getting over health problems, Information based or IT services. Many IT experts have got their profession by getting online support through other experts. We can say that online support means getting tutorials over specific problems through expertise.
Many people are doing business by selling their products in retail. They just have a shop at a specific place and customer comes to them to buy their product. Their business is very limited because their shop is only bound to selling the product to the local customers. Their business can grow up easily by making online shops throughout the process. There are websites which provide you server and themes for making online shop like Shopify. You can easily make your store online and sell your item throughout the country or even throughout the world. In this way, you aren’t bound to selling the product to the local customers they can sell it wherever they want.
Crowdfunding is a concept of getting funds for your business and is mostly applicable to startups. There is numerous website which allows you to post the idea of starting a new business and once the fund’s providers believe that your idea has the potential for better business, they will provide you funds.
In the brokerage business model, you act like an agent to both the buyer and seller. You just provide a platform to make buyers and sellers meet together. Once they do any transaction of selling or buying the product, you will get a commission from it according to the agreement. There is a lot of web-based platforms where you can easily sell or buy products in bulk. One of the popular websites if Alibaba.
The marketplace business model allows the seller to sell their services in the form of products, service or places. The seller lists their service for sale and also provides accommodation with them. The buyer uses to buy the offer just like renting a property. One of the best examples for the marketplace is Airbnb where you can easily lend the extra rooms of your house for other people to live. When they live, they will pay you according to an agreement.